Dominos Pizza UK & IRL plc (Dominos 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 27 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 607 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 Companys resilience in a particularly challenging consumer environment.
The Companys 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 reduced by 10.5%. Consumer spending in the UK with Dominos Pizza was even stronger if the VAT increase 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, Dominos 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 Companys 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.
For further information, please contact:
Dominos 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:
Dominos 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 Dominos 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 27 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, Dominos Pizza is one of the worlds leading pizza delivery brands. Through its primarily franchised system, Dominos Pizza operates a global network of more than 9,000 Dominos Pizza stores in over 65 countries. Dominos 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 Dominos app.
For photography, please visit the media centre atwww.dominos.uk.com, contact the Dominos Press Office on +44 (0)1908 580732, or call MHP on +44 (0)20 3128 8100.