great results6 Sep 2011 08:44
http://www.investegate.co.uk/Article.aspx?id=201109060700106690N
Highlights:
· Total system sales - sales from Company-owned stores ("corporate sales") and sales by sub-franchisees - increased by 15.4% to CHF 7.66m (2010: CHF 6.64m)
· Total revenues from sales - corporate sales and the amounts paid to Global Brands by the sub-franchisees - increased by 11% to CHF 7.37m (2010: CHF 6.64m)
· Internet sales continue to grow strongly and accounted for 24.1% of corporate sales in the first half of 2011.
· Gross profit increased 10.9% to CHF 5.35m (2010: CHF 4.82m); despite the overall pressure on food prices, the Company achieved a gross margin of 72.5% (2010: 72.6%)
· Staff costs reduced by 6.8% to CHF 3.69m (2010: CHF 3.96m)
· Administrative expenses increased by CHF 268k to CHF 2.22m (2010: CHF 1.96m) largely due to a combination of increased royalty costs from the increase in sales, the costs associated with the Pizza Taxi transaction and the new corporate structure.
· EBITDA losses of CHF 572k (2010: CHF 1.0m); an improvement of 47.9%
Current trading and Outlook:
· 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
o Corporate store sales in July increased by 5.9% on last year (2010: 25.9% increase)
o Corporate store sales in August decreased by 12.7% on last year (2010: 27.6% increase)
· Initial indications show that September is improving with people returning from holiday and children being back at school
· We are confident that the Company will continue to produce strong positive sales growth for the remainder of the year
Key Developments:
· Signed Letter of Intent ("LOI") with Dominos Pizza to acquire Master Franchise Agreement for Austria
Simon Bentley, Chairman, commented:
"We are pleased to announce that the Company achieved double digit sales growth for the first six months of the year despite the difficult macro-economic environment and uncharacteristic weather conditions. 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.
"We believe that the Swiss business is capable of significant growth. Trading at our existing corporate stores is expected to pick up strongly in the autumn/winter, which is historically our best trading period. We have also completed the conversion of the first Pizza Taxi store into a Domino's sub-franchise store, which is trading in line with expectations. In parallel, we will be focusing on developing our lunchtime
Sign In
Follow the stocks
