Interim Management Statement

RNS Number : 0499P

Domino's Pizza UK & IRL PLC

28 September 2011

 



 28 September 2011

DOMINO'S PIZZA UK & IRL plc

Quarter Three Interim Management Statement

13 weeks to 25 September 2011

Domino's Pizza UK & IRL plc ("Domino's" or "the Company"), the leading pizza delivery company in the UK and the Republic of Ireland, today announces its Interim Management Statement for the 13 week period to 25 September 2011 ("the period").

System sales for the period were up by 9.8% to £127.0m (2010: £115.7m) with year to date system sales up by 9.2% to £385.4m (2010: £352.8m). Despite the challenging economic climate, like-for-like sales for the period continued to grow, increasing by 3.9% in 605 mature stores (2010: 9.9% in 553 mature stores). In the UK only, like-for-like sales for the period are up by 4.1% (2010: 11.5%), while the equivalent figure for the Republic of Ireland is 1.8% (2010: -4.7%). Trading remains tough in the Republic of Ireland, where like-for-like sales for the period, in Euros, are down by 4.4% (2010: -0.5%). Group like-for-like sales for the year to date have risen by 2.9% (2010: 12.5%).

The third quarter has seen further development in our product innovation with the launch of the Domino's Stuffed Crust and the new Gourmet range. The Domino's Stuffed Crust launch was a direct response to customer demand and the new product is already proving very popular. The Gourmet range was developed to reach out to a new sector of potential consumers and, supported by the sponsorship of ITV's Red or Black, has been well received. Sales of the Gourmet range have been particularly pleasing in the Republic of Ireland, where the launch was backed by TV chef Andrew Rudd.

Domino's online presence also continues to drive growth, with e-commerce accounting for 46.6% of UK delivered sales (2010: 39.7%) in the 13 week period. Total online sales for the period rose by 36.4% to £45.0m (2010: £33.0m) and have reached £130.0m for the year to date (2010: £89.9m). We are seeing very strong growth in mobile ordering, buoyed by the release of the iPad app. Orders taken on one of the many mobile platforms now account for 13.0% of all e-commerce sales.

During the period, Domino's opened 15 new stores in the UK, Republic of Ireland and Germany (2010: 16), taking the total opened so far this year to 37 (2010: 35). There are numerous sites in the pipeline and the Company is on track to achieve its goal of 64 new stores for the year - 60 in the UK and the Republic of Ireland and four in Germany. During the period, one store was closed (2010: nil) and, at the period end, Domino's had a total of 698 stores in the UK and Republic of Ireland (2010: 643) and four in Germany.

The Company is making steady progress in Germany, with the opening of two new stores during the period - one in Berlin and one in Bonn. The early signs for this market are very encouraging, trade is building steadily and, having completed a full review of the market, plans are in place for new menus, a new website and a step change in marketing activity for the region. The Company is on target to have six stores in Germany by the year end.

The final quarter of 2011 will also be the last with current Chief Executive Chris Moore at the helm. He will be stepping down at the end of the financial year on December 25, 2011. His previously-announced successor, Lance Batchelor, has already demonstrated his capability and capacity to lead the Company into the next phase of its growth and he will take over as Chief Executive from the start of the 2012 financial year. The Board would like to take this opportunity to thank Chris Moore for his hard work, dedication and enthusiasm and for his remarkable commitment to Domino's over the last 21 years.

Chris Moore, Chief Executive, commented: "Lance has made excellent progress since he joined as Deputy Chief Executive and, combined with the experience he gained as a non-executive director of the Company, is ready to take the reins in three months time.

"We are pleased to have had a good quarter's trading and, although the economy as a whole is still very tough, we have got exciting plans in place for the rest of the year. We are on track and confident that we will finish the year in line with market expectations." 

-Ends-

For further information, please contact:

Domino's Pizza:

Chris Moore, Chief Executive Officer                                       01908 580604

Lee Ginsberg, Chief Financial Officer                                       01908 580611

Georgina Wald, Head of Corporate Communications        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 and the Republic of Ireland. 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 September 2011, there were 702 stores in the UK, Republic of Ireland and Germany. Of these, 553 stores are in England, 47 are in Scotland, 28 are in Wales, 19 are in Northern Ireland, one is on the Isle of Man, one is a mobile unit, 49 are in the Republic of Ireland and four 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 and customers in the Republic of Ireland can order online at www.dominos.ie. In addition, mobile customers can order by downloading Domino's free iPhone, iPad and Android 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].

 

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