After reporting blowout profits Domino's Pizza Enterprises told CNBC on Tuesday its venture into Japan was providing a large slice of its success.
The Australian headquartered franchise reported a 48 percent lift in net profit to $42.3 million for the 12 months to June 30 on Tuesday – up from $28.7 million a year ago, and forecast another 20 percent rise in earnings in the fiscal year 2014-2015 as it rolls out 185 new stores.
Much of the firm's success has been fueled by progress in Japan, following its acquisition of a controlling 75 percent interest in Japan's Domino's Pizza chain for $135 million in August last year, which meant 61 Japanese stores were added to its franchise.
As a result the company's group revenue nearly doubled to $588.7 million, with earnings per share increasing 31.6 percent to 54.6 cents.
"We've just become the number two player in Japan – we think we could become number one by the end of next year," said Don Meij chief executive officer Tom.
"We're up 10.7 percent in like-for-likes for the full year – it's an incredible business," he added.
Japan's largest pizza chain is currently domestic company Pizza-La. Other prominent pizza delivery chains operating in Japan include U.S. brand Pizza Hut and another domestic firm Aoki's pizza.
According to Meij, operations in Japan are proving to be less costly than in their home market of Australia – where the pizza chain is the largest player.
Domino's Pizza Enterprises is the master franchise for the Domino's Pizza brand, and currently operates out of six countries: Australia, New Zealand, France, Belgium, the Netherlands and Japan.