Q3 Trading Update (4263Q)
October 19 2011 - 1:00AM
UK Regulatory
TIDMGBR
RNS Number : 4263Q
Global Brands S.A.
19 October 2011
18 October 2011
Global Brands S.A. ("Global Brands" or "the Company")
Q3 Trading Update
Global Brands S.A. (AIM: GBR), an international business
developing branded food operations in Europe, including being the
master franchise owner for Domino's Pizza in Switzerland,
Luxembourg and Liechtenstein, announces a trading update for the
third quarter ("Q3") ended 30 September 2011.
Trading Update:
The total system sales - sales from Company-owned stores
("corporate sales") and sales by sub-franchisees - were up 2.6% on
Q3 2010 at CHF 3.43m. For the year to 30 September 2011, total
system sales were up 11.1% on the nine months to 30 September
2010.
Attracting new franchise candidates to the business has been
slower than originally expected. There have also been delays in the
conversion of the second Pizza Taxi store and we now expect the
conversion to begin in December 2011 on receipt of final approval
from the local authority. Following a review, the Directors have
decided not to convert the third Pizza Taxi store and have
terminated the franchise agreement. However, growth through sub
franchising remains a core focus for the Company and we continue to
develop this area of the business.
Overall, Q3 like-for-like corporate sales were fractionally down
(0.6%) on Q3 2010 at CHF 3.27m. The difficult trading conditions,
referred to in the previous update, continued over the summer and
had a noticeable impact on the holiday period. In August, like for
like corporate sales fell 9.5% on August 2010. However, this drop
was largely offset by a 7.6% improvement in like-for-like sales
July and September, despite being the hottest month in Switzerland
for 100 years, showed a 0.4% improvement on September 2010.
Internet sales continue to grow strongly with Q3 sales up 21.9% on
Q3 2010, accounting for 25.1% of corporate sales in the
quarter.
On a geographical split, like-for-like corporate sales for Q3 in
the West were down by 1.6% on the previous year (after showing a
25.4% in Q3 2010 against Q3 2009). Q3 like-for-like sales in the
East were up by 1.0% on last year (after Q3 2010 showing a 29.3%
increase on Q3 2009).
Early indications for Q4 are that trading conditions in the West
remain demanding as we continue to see the impact of the strong
Swiss Franc on our sector of the Geneva economy. However, we are
seeing strong growth in the East with double digit like-for-like
corporate sales growth thus far in October. Overall, initial
trading figures for early October are showing a 4% increase on
like-for-like corporate sales on the same period in 2010.
Bruce Vandenberg, CEO commented:
"Our corporate sales growth in Q3 2010 was fantastic with a
26.6% like-for-like increase on the previous year. Beating that
this year was always going to be a challenge and there is no doubt
that trading during the summer was tough, particularly in August.
Despite these conditions, we have managed to maintain sales levels
in Q3 for our corporate stores and I am further encouraged by the
strong sales growth in our stores in the East in October. We will
be implementing a number of initiatives during Q4 to stimulate
further growth in the West and I remain confident of a strong final
quarter."
-Ends-
For further information:
Global Brands S.A.
Simon Bentley, Chairman Tel: (0) 20 7317 8022
Bruce Vandenberg, CEO www.globalbrands.ch
Libertas Capital
Thilo Hoffmann Tel: (0) 20 7569 9650
www.libertascapitalpartners.com
Alexander David Securities Ltd
Bill Sharp Tel: (0) 20 7448 9820
Fiona Kinghorn Tel: (0) 20 7448 9832
www.ad-securities.com
Financial Dynamics
Jonathon Brill Tel: (0)20 7831 3113
Caroline Stewart www.fd.com
Notes to Editors:
Global Brands is a public company incorporated under the laws of
Luxembourg and established in 1999. The company has been admitted
to trading on the AIM of the London Stock Exchange since 2005.
The Company is the owner and operator of the exclusive master
franchise of Domino's Pizza in Switzerland, Luxembourg and
Liechtenstein. Domino's Pizza is the world's leading pizza delivery
brand, with over 9000 stores in 63 markets.
Global Brands SA's stated strategy is to add additional
international brands to its portfolio.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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