Q3 Trading Update (4263Q)

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: [phone]

Bruce Vandenberg, CEO www.globalbrands.ch

Libertas Capital

Thilo Hoffmann Tel: [phone]

www.libertascapitalpartners.com

Alexander David Securities Ltd

Bill Sharp Tel: [phone]

Fiona Kinghorn Tel: [phone]

www.ad-securities.com

Financial Dynamics

Jonathon Brill Tel: [phone]

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

TSTFVLLFFBFFFBZ