Trading Statement

Domino's Pizza UK & IRL PLC 09 January 2003 For Immediate Release 9 January 2003 Domino's Pizza UK & IRL plc Pizza Delivery Leader Announces Sales Increase As New Report Predicts Substantial Future Industry Growth Domino's Pizza UK & IRL plc announces like-for-like sales increases of 6.3% for the five weeks to 29 December 2002. Preliminary results for the year will be announced in February 2003. The results support findings published today in a new market report from independent commercial think-tank, The Future Foundation. Included within the report is an estimate that the UK's home delivery pizza market will more than double by 2010 to approximately £800 million. Stephen Hemsley, Chief Executive of Domino's Pizza, commented, 'We were pleased with our Christmas trading performance which continued the growth of the earlier part of the year. We look forward with confidence to reporting our full year end results next month, and to continued growth in the coming year. 'It is very positive to hear that the Future Foundation report endorses our belief that the home delivery pizza has a very bright future. As the UK's leading pizza delivery company we are confident in our ability to continue capitalising on the predicted substantial growth of the market.' The Future Foundation Report was commissioned by Domino's Pizza and considers the social, economic, demographic and technological factors likely to impact on the sector for the remainder of this decade. Highlights include: Current Market Situation • The total home delivered food market (all foods) is estimated to have been worth £1.058 billion in 2002, a 56% increase in value since 1997 • Home delivery now makes up 70% of the total take-away and home delivered food sector, up from 62% in 1997 • Pizza is the single largest category in the home delivered food market, accounting for 36% of value Key Growth Drivers • Time pressure - the research shows that, on average, adults in the UK eat out and/or eat delivered/take-away meals around 80 times a year, reflecting the increasing demands on time. The experience of eating out or ordering in can represent a way of creating a 'time oasis'. • Rising disposable income - real household disposable income is expected to increase by 11.8% over the next five years resulting in greater personal opportunities to spend on home delivered food. • Changing demographics - in the long term, the number of older people will grow. According to the research, the industry can capitalise on this change by cementing brand loyalty amongst a generation of people who have grown up as pizza consumers and will be an increasingly affluent section of the population. Furthermore, the changing family formation is likely to impact positively on the industry with an increasing number of couples without children and single person households with more disposable income likely to spend on eating out and ordering in. A decline in the traditional family structure, coupled with increasingly individualised tastes, will result in even fewer 'formal family meals' in the home. • Leisure participation - the next decade will see an increasing choice and variety of leisure pastimes. Eating out or having food delivered is just one of these competing areas. During the next five years the research suggests that spending on home-delivered food and take-aways will continue increasing at constant prices by 2.5% a year on average. • Technology - Over the next five years an increasing section of the population will have access to interactive technologies, up from 70% today to 90%, and the number of broadband users will increase. These people will become more experienced and confident about e-commerce and about buying food online. The research suggests that as ordering online becomes easier and online advertising more accessible, those home food deliverers taking advantage of this area are likely to do particularly well. Stephen Hemsley concluded, 'It's a very exciting time for pizza home delivery. This report sets in context our future expansion plans and the way in which Domino's aims to continue meeting the needs of our customers with changing lifestyles.' Sarah Graham, The Future Foundation, commented, 'The home delivered pizza sector in the UK is already performing extremely well and the rest of the decade will see tremendous growth. Changes affecting the whole social and economic make-up of the country will drive this success and those companies who take advantage of these trends will be the household names of 2010.' Contacts : For further information and a full copy of the Future Foundation report, please contact: Ruth Pagett or Duncan Mackenzie-Reid at Lexis PR on 07803 127582 or 07776 257170, or Bernadette Eddisford at Domino's Pizza on 07909 928016. For financial PR enquiries, please contact Isabel Petre or Catherine Miles at Buchanan Communications on 020 7466 5000. Notes to Editors: • Graphs/visual support to accompany this release are available on request. • Domino's Pizza UK & IRL plc is quoted on the Alternative Investment Market of the London Stock Exchange (symbol: DOM). Its subsidiary, Domino's Pizza Group Limited, is the UK's leading pizza delivery company and holds the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the UK and Ireland. • Founded in 1960, Domino's Pizza, the recognised world leader in pizza delivery, operates a network of 7,138 company owned and franchised stores in the United States and more than 60 international markets. Domino's is committed to leading the industry in product quality and operational excellence. This information is provided by RNS The company news service from the London Stock Exchange TSTDGGGMNRVGFZM
UK 100

Latest directors dealings