Quarter One Trading Statement
13 weeks to 30 March 2014
Domino's Pizza Group plc ("Domino's" or "the Group"), the leading pizza delivery group with stores in the UK, Germany, Republic of Ireland and Switzerland, announces its Trading Statement covering the 13 week period to 30 March 2014 ("the period") unless otherwise stated.
The Group has made a strong start to the year with system sales rising by 14.8% to £188.5m (2013: £164.1m), largely driven by strong like-for-like sales growth in the first part of the quarter. Like-for-like sales in the UK in 725 mature stores increased by 10.8% (2013: 6.6% in 670 mature stores) thanks in part to our most successful meal deal ever offered - the Winter Survival Deal - and some weaker comparative figures due to the impact of snow in the early weeks of the same period last year. In addition, like-for-like sales, in Euros, in the Republic of Ireland remained in positive territory, rising by 3.4% (2013: 8.1%) in the period.
The proportion of sales taken via e-commerce continues to grow with 69.4% of all UK delivered sales (2013: 61.9% of UK delivered sales) now coming via the internet. Sales taken through all online platforms were up 25% to £103m (2013: £82.4m) and, of this, 34% was taken through mobile devices (2013: 25.2%).
In the German market the Group continues to implement its plan focused on establishing successful store level economics. Like-for-like sales, in Euros, in 17 mature stores (2013: 6 mature stores) were up by 3.2% (2013: 40.3%). In Switzerland, like-for-like sales, in Swiss Francs, in the 10 mature stores were up by 1.8% in the period.
David Wild, Interim Chief Executive Officer, commented: "We are pleased with the like-for-like performance in our core UK and ROI business. The pipeline and franchisee demand for new stores is healthy. Whilst we expect the number of sites opened in the year to be second half weighted, we remain confident in delivering our target of 40-50 new stores in 2014.
Like-for-like growth in Germany remains subdued as we transition our stores across to franchisee ownership and focus on store level economics.
In Switzerland, we are refreshing the estate, remaining on course to reach break even by the final quarter of 2014/early 2015.
In summary, although it is still early and we face some tough comparatives later in the year, the plans we have in place are strong and I look forward with optimism."
Stephen Hemsley, Chairman, commented: "This is a pleasing set of results for the UK and ROI and we continue to implement our stated plans for Germany and Switzerland. The process for finding a new CEO is well advanced and the Board looks forward to updating the market in the near future."
For further information, please contact:
David Wild, Sean Wilkins
Tim McCall, Simon Hockridge, Naomi Lane
020 3128 8100
Numis Securities Limited:
David Poutney, James Serjeant
020 7260 1000
Notes to Editors:
Domino's Pizza Group 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, Republic of Ireland, Germany, Switzerland, Liechtenstein and Luxembourg. 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. The minority shareholding in Germany was subsequently acquired in February 2014. In September 2012, the Group acquired the master franchise for Switzerland, Luxembourg and Liechtenstein and an option to acquire the Master Franchise Agreement in Austria prior to the end of 2014.
As at 30 March 2014, there were 862 stores in the UK, Republic of Ireland, Germany and Switzerland. Of these, 666 stores are in England, 56 are in Scotland, 33 are in Wales, 21 are in Northern Ireland, one is on the Isle of Man, three are mobile units, 48 are in the Republic of Ireland, 24 are in Germany and 10 are in Switzerland.
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 almost 10,900 Domino's Pizza stores in over 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, in the Republic of Ireland at www.dominos.ie, in Germany at www.dominos.de and in Switzerland at www.dominos.ch. In addition, mobile customers can order by downloading Domino's free iPhone, iPad and Android apps.