– Difficult to get the math to add up – E24
Domino’s improved its result by over 100 million last year, but terribly high electricity and raw material prices will put a damper on future operations.
– Over time, we cannot continue to operate if we do not see profitability, says chairman and co-owner of Domino’s Pizza Norway, Eirik Bergh, to E24.
– With today’s electricity prices, it is difficult to make the math work out.
The pizza chain, known for its American quick pizzas, entered the Norwegian market in 2014 and early on had big ambitions to become the biggest in the country. That is still the goal, according to Bergh.
Last year, Domino’s Pizza Norway earned NOK 276 million, on a par with the previous year. However, the operating result ended at minus NOK 4.9 million, an improvement of just over NOK 100 million in 2020.
This appears from the recent annual accounts.
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The company’s growth has continued in the first half of the year, according to Bergh. However, the chairman is uncertain about the pizza chain’s profitability in 2022 and blames the politicians for the complicated situation.
– Both rent for farm owners and raw material prices have risen sharply. In addition, as is well known, the price of electricity has skyrocketed due to the politicians’ poor management of our electricity production.
– It would be a shame if the great development we have seen should end in liquidation due to very weak political craftsmanship around the management of electricity production in Norway. What happened to predictable framework conditions that the authorities have talked about so nicely for all these years?