Interim Management Statement

RNS Number : 2070A

Domino's Pizza UK & IRL PLC

28 March 2012

 



  28 March 2012

DOMINO'S PIZZA UK & IRL plc

Quarter One Interim Management Statement

13 weeks to 25 March 2012

Domino's Pizza UK & IRL plc ("Domino's", "the Company" or "the Group"), the leading pizza delivery company in the UK and the Republic of Ireland, announces its Interim Management Statement in conjunction with its Annual General Meeting which is to be held at 1pm today [28 March 2012]. Financial data relates to the 13 week period to 25 March 2012 ("the period") unless otherwise stated.

The Company has made a good start to the year with system sales rising by 9.0% to £144.2m (2011: £132.3m) driven by a combination of new store openings and like-for-like sales growth. Like-for-like sales in 660 mature stores increased by 3.5% (2011: 4.2% in 607 mature stores). Like-for-like sales increased in the UK by 3.6% (2011: 5.5%) and the Republic of Ireland by 1.7% (2011: -10.5%).

The Company continues to enjoy strong online growth, with e-commerce sales accounting for 50.6% of UK delivered sales (2011: 39.3%) in the 13 week period. Total online sales for the period were up 44.5% to £59.3m (2011: £41.3m) and, of this, 16.4% was taken through one of Domino's many mobile platforms. In a first for the Company, during the period over £1million in sales were taken through its mobile platforms in a single week. In addition, Domino's continues to develop in the social media arena and now has over 520,000 Facebook fans in the UK, with another 13,700 in the Republic of Ireland (2011: 160,000 total), and over 22,000 Twitter followers (2011: 5,000) in our respective markets.

During the period, six new stores (2011: eight) were opened and, with a large number of locations in the pipeline, the Company is confident of achieving the target of 72 new stores during the full year, of which 12 are planned in Germany.

In terms of food costs, 69% of the food basket for 2012 is fixed at the same prices as 2011, so the Company faces fewer cost pressures, providing additional financial stability to franchisees.

We are pleased with the progress being made in Germany and have successfully integrated the comprehensive market research conducted by the Company in the early months of operation with our robust UK practices. This is beginning to pay off with the right menu now in place, good demographic information and a clear roadmap as to how we will develop in the territory. We have identified a number of great locations in the more affluent west of the country and the first of 12 new stores for 2012 is already under construction. In addition, discussions are continuing with a small number of excellent German and UK franchisees who will play an important role in our expansion.

Lance Batchelor, Chief Executive Officer, commented: "We are pleased with the Group's performance in the first quarter and, although they are just part of the growth story, it is good to see our like-for-like sales continue to increase. It is especially pleasing to see sales in the Republic of Ireland return to positive territory.

"We may have a softer comparative for the second quarter of the year - but we will not be taking our foot off the accelerator. We have a number of marketing initiatives and other programmes aimed at ensuring our franchisees can profitably grow their businesses in the coming months. This, combined with a full pipeline of potential new sites, expansion in Germany, a strong management team in place and our ever improving operational gearing, makes me confident and optimistic about the months and years ahead."

-Ends-

For further information, please contact:

Domino's Pizza:

Lance Batchelor, Chief Executive Officer                      01908 580604

Lee Ginsberg, Chief Financial Officer                             01908 580611

Georgina Wald, Head of Corporate Comms                 01908 580660

MHP:

Tim McCall, Anthony Arthur, Simon Hockridge          020 3128 8100

Numis Securities Limited

David Poutney, James Serjeant                                         020 7260 1000

Notes to Editors:

Domino's Pizza UK & IRL plc is the leading player in the fast-growing pizza delivery market and holds the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the UK, the Republic of Ireland and Germany. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991. In April 2011, the Group acquired a majority stake in the exclusive master franchise to own, operate and franchise Domino's Pizza stores in Germany.

As at 25 March 2012, there were 732 stores in the UK, Republic of Ireland and Germany. Of these, 580 stores are in England, 49 are in Scotland, 28 are in Wales, 19 are in Northern Ireland, one is on the Isle of Man, one is a mobile unit, 48 are in the Republic of Ireland and six are in Germany.

Founded in 1960, Domino's Pizza is one of the world's leading pizza delivery brands. Through its primarily franchised system, Domino's Pizza operates a global network of more than 9,350 Domino's Pizza stores in 70 international markets. Domino's Pizza has a singular focus - the home delivery of pizza, freshly made to order with high quality ingredients.

Customers in the UK can order online at www.dominos.co.uk, customers in the Republic of Ireland can order online at www.dominos.ie and customers in Germany can order online at www.dominos.de. In addition, mobile customers can order by downloading Domino's free iPhone, iPad, Android and Windows Phone 7 apps.

For photography, please visit the media centre at www.dominos.uk.com, contact the Domino's Press Office on [phone], or call MHP on [phone].

 

END

 

 

IMSBLGDXGGDBGDR