Domino’s Pizza Group plc (“Domino’s”, the “Company” or the “Group”), the leading pizza delivery company with stores in the UK, Republic of Ireland, Germany and Switzerland, has announced its trading for the 13 week period to 29 December 2013 and for the 52 weeks ended 29 December 2013. Clearly, the UK public is not tiring of pizza…
United Kingdom
Trading has been particularly strong in the period buoyed by exceptional like-for-like sales growth. System sales for the period were up 15.6% to £170.4m (2012*: £147.4m). Like-for-like sales in the period in 670 UK mature stores were up by 10.9% (2012*: 4.5% in 613 mature stores) partly driven by increased digital marketing activity and more favourable timing of the Christmas break compared to last year.
System sales for the 52 weeks ended 29 December 2013 increased by 12.2% to £608.8m (2012*: £542.8m). Like-for-like sales for the year, in UK stores, grew by 7.0% (2012*: 5.2%).
Online sales now 65.5%
Online sales continue to grow and accounted for 65.5% of UK delivered sales (2012*: 60.8%) in the period. Total online sales for the period rose by 15.7% to £94.4m (2012*: £81.6m) and online sales for the year were £325.9m (2012*: £256.0m). Mobile sales were up by 91% in the period (2012*: 187%) and accounted for 30.9% of total online sales in the year (2012*: 19.7%).
During the period, Domino’s opened 27 new stores in the UK (2012*: 25) with 50 new stores (42 traditional delivery stores, six kiosk stores in Extra motorway service stations, one kiosk in Newcastle University and one mobile unit) opened this year (2012*: 57). At the period end, Domino’s had a total of 777 stores in the UK (2012*: 727). During the year no stores closed (2012*: 2).
International
System sales in the Republic of Ireland were up 7.6% to €13.5m in the period (2012*:
€12.5m) and were up 6.0% for the year to €49.6m (2012*: €46.8m). Like-for-like sales in the period were up by 7.6% (2012*: -4.2%) with “late-night” being a key driver of this growth. Like-for-like sales for the year grew by 6.0% (2012*: -0.3%). The number of stores remained at 48.
The German market generated system sales in the period of €2.9m (2012*: €1.4m) and like- for-like sales growth of 4.6% (2012*: 21.7%). For the year, system sales were up 184.2% to
€10.4m (2012*: €3.6m) and like-for-like sales were up 14.7% (2012*: 19.3%). The franchisee stores continue to make good sales progress and at higher sales levels than the corporate stores.
Seven stores opened during the year – all in the first half. No new stores were opened in Germany during the period as a result of the decision taken to transition the majority of the corporate stores across to franchisee management: agreement has been reached with franchisees to transfer 13 of the 15 corporate stores to franchisees and one has closed. The flagship store in Dusseldorf will be retained as a corporate store and will be operated as a training facility for the wider franchise system. As at 29 December 2013 Germany had 23 stores.
Progress in Switzerland continues steadily with system sales in the period of CHF 3.5m (2012*: CHF 3.8m) and like-for-like sales rising by 5.4% for the year. At the year end there were 10 stores (2012: 12) in this market.
Outstanding last quarter in UK market
Lance Batchelor, Chief Executive, commented:
“I am pleased to report an outstanding last quarter of like-for-like sales growth in our core UK market and robust like-for-like sales growth in the Republic of Ireland stores, where positive like-for-like sales were recorded in every quarter this year after four years of decline. I am also pleased to report that we have reached agreement to transfer corporate stores in Germany into franchisee hands and are encouraged to see that we have several German based franchisees that will join our system in this year.
“The Company will deliver full year 2013 profits ahead of market expectations for the UK and Ireland, but losses in Germany will be higher than expected primarily due to the later than expected transition of the corporate stores into franchisee hands.
“Consequently, full year results for the Group are expected to be in line with market consensus.
We will update the market further on 26 February 2014 with the publication of the Company’s preliminary results”
Stephen Hemsley, Non-Executive Chairman, commented:
“Following Lance Batchelor’s recent resignation, an executive search firm has been appointed and the CEO recruitment process is now underway. We are confident of attracting a CEO of the highest calibre”.
The table below highlights the 2013 trading period compared to the reported 14 week quarter four and 53 week full year period in 2012:
| Quarter Four | Full Year | ||||||
| 201313 weeks | 201214 weeks | %Growth | 201352 weeks | 201253 weeks | %Growth | ||
| UK | System sales | £170.4m | £159.3m | 7.0% | £608.8m | £553.6m | 10.0% |
| Like-for-likes | 10.9% | 5.0% | – | 7.0% | 5.0% | – | |
| ROI | System sales | €13.5m | €13.5m | 0.0% | €49.6m | €48.1m | 3.2% |
| Like-for-likes | 7.6% | -3.8% | – | 6.0% | -0.2% | – | |
| Germany | System sales | €2.9m | €1.4m | 106.4% | €10.4m | €3.6m | 186.8% |
| Like-for-likes | 4.6% | 21.7% | – | 14.7% | 19.3% | – | |
| Switzerland | System sales | CHF 3.5m | CHF 4.1m | -14.7% | CHF 13.3m | CHF 14.3m | -7.0% |
| Like-for-likes | 1.9% | – | – | 5.4 | – | – | |
As at 29th December 2013, there were 858 stores in the UK, Republic of Ireland, Germany and Switzerland. Of these, 663 stores were in England, 56 were in Scotland, 33 were in Wales, 21 were in Northern Ireland, one was on the Isle of Man, three were mobile units, 48 were in the Republic of Ireland, 23 were in Germany and 10 were 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 more than 10,000 Domino’s Pizza stores in 73 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.