Global Brands Regulatory News (GBR)

3 Jul 2006 12:53

Trading Statement Global Brands S.A. (the "Company"), the exclusive master franchisee of Domino'sPizza in Switzerland, Luxembourg and Lichtenstein, provides the followingupdate on trading.During the first half of the year to the end of June 2006 the total revenues ofthe Company has risen by 38.2% over the same period last year to CHF 5.09million.Same stores (the stores operating more than one year) continued to make furtherprogress during the first half of 2006 with sales increasing impressively bymore than 11.7% over the same period last year.However, during the first half of the year, the sales in the four new storesopened during the period September 2005 to March 2006 have been significantlybelow budget.Due to the above, the Company has decided to revise the store opening schedulefor 2006 and open two additional stores during this year, as permitted underthe Master Franchise Agreement. The Directors intend that the new stores willbe opened in cities in which the Company has already been active for severalyears.Furthermore, due to the performance of the new stores, the additionalinvestment in marketing and PR, the amendment of the store opening schedule andas previously announced, the Company now forecasts revenues to be significantlylower than expected and to produce an EBITDA loss for the year ending 31December 2006.The Board continues to closely monitor the development of the new stores and istaking the needed actions to improve the performance of the new stores.A further update on progress will be provided when the interim results for the6 months ending 30 June 2006 are announced on 7 September 2006.It should be noted that the Company's cash position remains strong with netcash of over CHF 5 million as at 31 May 2006, enabling the Company to executeits development plan for Domino's Pizza in the territory.The Board remains confident that Global Brands has a sound business model andan excellent opportunity to develop Domino's in the market.For further information, please contact:Global Brands Dov Lachovitz T: 00 41 79 7744 627 Threadneedle Communications 020 7936 9605 Graham Herring/Alex White 07793 839 024ENDGLOBAL BRANDS S.A.