Quarter One Interim Management Statement

RNS Number : 8728D

Domino's Pizza UK & IRL PLC

30 March 2011

 



30 March 2011

DOMINO'S PIZZA UK & IRL plc

Quarter One Interim Management Statement

13 weeks to 30 March 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 in conjunction with its Annual General Meeting which is to be held at 1pm today, 30 March 2011. Financial data relates to the 13 week period to 30 March 2011 ("the period") unless otherwise stated.

The Company has continued to show steady growth during the period with system sales rising by 11.2% to £132.3m (2010: £118.9m) and like-for-like sales in 608 mature stores increasing by 4.2% (2010: 10.5% in 553 mature stores). This growth is set against a backdrop of high comparatives, including the early impact of our very successful Two for Tuesday promotion, and emphasises the Company's resilience in a particularly challenging consumer environment.

The Company's total like-for-like figure is also increasingly affected by the performance of the Republic of Ireland stores where trading conditions have continued to deteriorate during the period. Trading in the UK stores (which represent 92.6% of system sales) is far more buoyant with like-for-like sales up by 5.5%, while like-for-likes in the Republic of Ireland are at -10.5%. The UK growth in like-for-like sales increases further if the VAT rise is taken into account.

E-commerce continues to be one of the key drivers, with online sales accounting for 39.3% of UK delivered sales (2010: 28.8%) in the 13 week period. Total online sales for the period were up an incredible 62.9% to £41.3m (2010: £25.3m). In addition, Domino's now has over 160,000 Facebook fans and more than 5,000 Twitter followers, demonstrating the loyal customer following it has developed.

During the period, eight new stores (2010: eight) were opened, one was temporarily closed pending relocation (2010: nil) and there are a large number of sites in the pipeline. The Company is confident of achieving the target of 60 new stores during the full year. In addition, the operational gearing remains strong, underpinning the financial strength of the Company.

During the period, the Company bought back and cancelled 400,000 shares at a cost of £1.8m. It is the Company's intention to continue to return surplus cash to shareholders going forward.

Chris Moore, Chief Executive, commented: "We are glad to be reporting a good performance in the UK, where like-for-like gross sales were up 7.8% in the first 13 weeks, if the VAT increase was taken into account. The overall group numbers were, however, held back by the very difficult trading environment in the Republic of Ireland which contributes 7.4% of our system sales. However, as a Company we are rarely satisfied with just a good performance and we have some exciting new products and marketing initiatives lined up to lead the charge for the rest of the year.

"We are up against some very challenging comparatives for the rest of the year, especially in the second quarter. However, with the management team that is in place, the ideas flowing through the business, new sites in the pipeline and our ever improving operational gearing, the business is well placed for further strong growth this year." 

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For further information, please contact:

Domino's Pizza:

Chris Moore, Chief Executive Officer                             01908 580604

Lee Ginsberg, Chief Financial Officer                             01908 580611

Georgina Wald, Corporate Comms Manager               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.

As at 30 March 2011, there were 672 stores in the UK and the Republic of Ireland. Of these, 530 stores are in England, 47 are in Scotland, 27 are in Wales, 18 are in Northern Ireland, one is on the Isle of Man, 48 are in the Republic of Ireland and one is a mobile unit.

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 9,000 Domino's Pizza stores in over 65 countries. 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, iPhone customers can order by downloading the free Domino's app.

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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