By Marcus Leach
Domino's Pizza UK & IRL plc today (Wednesday) announced its trading update for the 13 week period to 25 December 2011, reporting that system sales for the period increased by 9.5% to £145.0m (2010: £132.5m).
System sales for the 52 weeks ended 25 December 2011 increased by 9.4% to £530.6m (2010: £485.3m). Like-for-like sales in 604 mature stores grew by 3.6% for the period (2010: 10.3% in 553 mature stores), with the UK stores up 4.0% and the stores in the Republic of Ireland down 1.0%. Like-for-like sales growth for the year was 3.0% (2010: 11.9%) with the UK stores up by 3.7% and the Republic of Ireland stores down 4.1%.
E-commerce has continued to show excellent growth and online sales now frequently top the £1million mark in a single day. Online sales through mobile devices have also grown rapidly and now account for 12.6% of all online orders.
Total e-commerce sales for the period in the UK and the Republic of Ireland increased by 39.6% to £53.1m (2010: £38.1m) and online sales for the year were £183.1m (2010: £128.0m), an increase of 43.0% (2010: 63.0%). Online sales for the year accounted for 44.3% of UK delivered sales (2010: 35.8%).
During the year, the Group opened 62 new stores (2010: 57), which was an all time record. Of these new store openings, 58 were in the UK and the Republic of Ireland (also a record) and four opened in Germany. During the year three stores closed (2010: zero), two in the UK and one in the Republic of Ireland.
"We are very pleased to be showing good like-for-like sales growth for the year - especially against a tough comparative and the 2.5% VAT rise at the start of 2011," Lance Batchelor, Chief Executive, commented.
"Domino's is a robust business with strong cash generation and, although the general economy is challenging, we have grown sales and opened a record number of new stores.
"As I take over as Chief Executive, I come into the new year with confidence and optimism and will continue the growth of the business through our strong tradition of innovation, with new products and new locations. In addition, we are making good progress in our first German stores, gaining familiarity with consumer preferences and the logistics of operating in an exciting new market.
"I am delighted to announce that the Company will deliver full year 2011 profits in line with current City consensus forecasts. We will update the market further on 15 February 2012 with the publication of the Company's preliminary results."
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