Global Brands narrows pre-tax losses

Aim listed Global Brands, which owns the Domino's Pizza franchise in Switzerland, Luxembourg and Liechtenstein, narrowed half year losses and said it was confident of positive sales growth for the remainder of the year.Pre-tax loss was reduced to 810,638 Swiss franc for the six months ended 30 June 2011 compared to 1.34m Swiss franc loss the previous year. Total revenue from sales, including corporate sales and the amounts paid to Global Brands by the sub-franchisees, rose 11% to 7.37m Swiss franc. Total system sales, including sales from company-owned stores and sales by sub-franchisees increased 15.4%. Internet sales, which account for 24.1% of corporate sales, grew strongly in the first half of 2011. Gross profit increased 10.9% while the group achieved a gross margin of 72.5% compared to 72.6%. "July and August sales were up against tough comparatives from the previous year and August was slightly weaker than expected due to a combination of lower tourism levels and Ramadan running through August this year," the group said in a company statement.Chairman Simon Bentley added, "As noted in previous trading updates, the company saw strong sales growth in Q1, however, Q2 sales were affected by the exceptionally warm weather conditions in Switzerland, with March to June 2011 being the hottest months on record. We were also particularly encouraged by the strong performance of internet sales over both quarters." ---CJ