Domino's Pizza Group PLC Trading Statement (2782M)
October 12 2016 - 2:00AM
UK Regulatory
TIDMDOM
RNS Number : 2782M
Domino's Pizza Group PLC
12 October 2016
12 October 2016
Domino's Pizza Group plc
Q3 Trading Statement
Strong trading continues
Domino's Pizza plc ("Domino's" or the "Group"), the UK's number
one pizza company, issues the following scheduled trading update
relating to the period from 27 June 2016 to 25 September 2016.
The Group continued to trade well during the quarter building on
the very strong first half. The breakdown of sales performance by
market is shown in the table below.
13 weeks 13 weeks % change Year Year % change
to 25 to 27 to date to date
September September 2016 2015
2016 2015
------------- -------------- ------------ ------------ --------- ---------- ---------- ---------
System sales
LFL sales GBP220.9m GBP200.0m GBP684.9m GBP597.0m
UK growth +3.9% +14.9% +10.5% +8.6% +11.8% +14.7%
------------- -------------- ------------ ------------ --------- ---------- ---------- ---------
System sales
LFL sales EUR14.9m EUR13.8m EUR45.2m EUR40.9m
ROI growth +7.6% +14.1% +7.6% +11.0% +9.0% +10.6%
------------- -------------- ------------ ------------ --------- ---------- ---------- ---------
System sales CHF 4.8m
LFL sales +0.0% CHF 4.1m CHF15.0m CHF12.1m
Switzerland growth * +5.3% +16.7% +7.6% +3.6% +23.6%
------------- -------------- ------------ ------------ --------- ---------- ---------- ---------
Group System sales GBP237.0m GBP212.6m +11.5% GBP731.5m GBP635.1m +15.2%
------------- -------------- ------------ ------------ --------- ---------- ---------- ---------
* Underlying Q3 LFL for Switzerland is 7.6%, and underlying YTD
LFL is 10.7%
Trading in the core UK business was strong, driven by continued
investment in our digital platform and store opening programme.
System sales in the UK increased by 10.5%, supported by the 21 new
stores opened in the period, bringing the total year to date to 51.
Of these, 34 were stores where the trading area was split between
units. Working with our franchisees on their store openings remains
one of the key planks of our strategy, with our current total of
920 stores still leaving substantial growth capacity.
As indicated at our half year results, we are facing some very
tough comparators in the second half of the year, with LFLs in Q3
2015 at 14.9% and Q3 2016 at 3.9%. Our two year LFL sales growth in
Q3 was robust at 19.4%.
System sales through digital channels were strongly ahead, up
18.1% compared to Q3 last year. Over 81% of delivered sales in the
year to date have been online, with 64% placed through the app or
mobile website.
We continue to be encouraged by the third quarter results in
Ireland where the strong LFL sales growth of 7.6% is benefitting
from the increasing trend towards digital ordering and the growing
economy.
In Switzerland, total sales have increased by 16.7%. This
increase came despite being unable to offer carry-out due to a
local licensing issue in two stores. Excluding these, we showed
strong LFL sales growth of 7.6%, although with them included, LFL
sales were flat. We expect this license issue to be resolved
soon.
Iceland and Norway continue to perform strongly in the period
with system sales growth of 17.5% and 124.8% respectively.
Expansion continues with one store opened in Iceland and three new
units in Norway in the year. We expect to open our first Swedish
store before the end of the year.
The German JV continues to perform in line with
expectations.
Outlook
The comparatives remain challenging, but the continued strong
sales performance means the Board is confident our forecast full
year results will be in line with market expectations.
Given the strong new store performance of the business in the
third quarter, we raise our UK openings expectation from 70 to up
to 80 new outlets in 2016.
Commenting on the results, Chief Executive Officer David Wild,
said:
"The business continues to trade well with a strong sales uplift
across the Group during the period. As highlighted at our interim
results in July, we face tough comparatives in the second half of
the year, but our continued investment in e-commerce, our
international expansion and the launch of our new Italiano range
taking us to new customers, will help to drive performance for the
remainder of the year. Our new store programme provides a strong
platform for future growth.
"On 10(th) October we welcomed to the group Rachel Osborne as an
executive director and Chief Financial Officer of the Company.
"We shall provide a more detailed update on our long term plans
at our Capital Markets Day in London on 24(th) November 2016."
For further information, please contact:
Domino's Pizza Group plc:
David Wild, Chief Executive
Officer 020 7379 5151
Maitland:
James Devas, Robbie Hynes 020 7379 5151
Conference Call
There will be a conference call for investors and sell-side
analysts at 8.30am today. The participant dial-in is +44 (0)203 043
2002. The PIN is 6802111#. A recording of the call will also be
available afterwards at http://corporate.dominos.co.uk/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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