Dp Poland Share Discussion Threads

[stefanzygmunt] 26/9/2016 22:55

In #Poland registered unemployment is falling to record levels this year, from month to month. In July it dipped to just 8.6 per cent. This was the best result since 1990. It is the result of economic prosperity, which is helping to create new places of employment. It has also triggered a change in behaviour among employers. A growing number of them have started posting employment offers in job centres.Unemployment in Poland is lower than the EU average.

[stefanzygmunt] 23/9/2016 20:55

Long growth runway
In half-year results announced this morning, management said store opening momentum continues to build, with six stores opened in the year-to-date, taking the total to 29 stores. Strong like-for-like performance of existing stores (+28%), plus the contribution of new stores saw total retail sales (corporate and sub-franchised locations) up by 57% from H1 2015.
A rapidly growing store estate requires considerable investment in property and people, and DP Poland will be lossmaking for some years yet as a result of this upfront investment. This is a normal situation for a franchise rollout from scratch. In time, costs reduce as a percentage of sales and the company starts generating profits.
Generally speaking, I'm not too enamoured of lossmaking businesses. However, Domino's Pizza has proven itself to be a highly successful brand in many countries and the indications are that Poland will be no different. The company's annualised revenues are currently under £6m, and with Poland's population of 38.5m there a long growth runway ahead based on Domino's revenue per capita in more mature markets.
On this basis, I don't see a current valuation of 11 times sales at a share price of 50p as prohibitive for long-term investors.

[stefanzygmunt] 20/9/2016 21:30

LBO - surely you're not still doubting the conpany. You've been doing that since February when the price was in the low 20's. You should have bought in then, bet you're hating where the price is now. Don't beat yourself up about it, move on or buy in!!!!
75p target sounds very nice, let's wait and see eh

[lbo] 20/9/2016 20:40

P Poland (LON:DPP) - poor interims. Still loss-making. Painfully slow progress. But good LFL sales growth. Bonkers market cap, for such a poor roll-out. Forecast to reach breakeven in 2018!

[stefanzygmunt] 20/9/2016 19:26

What it’s worth…
DP Poland has enjoyed a solid 2016 with the share price more than doubling in the year so far.

The stock currently sits around the 50p mark, which gives DP Poland a market value of around £65mln.

Peel Hunt says that there is still some headroom for share price growth however, and thinks it can add as much as another 50%.

The broker has reinstated its target price of 75p, adding that trading momentum should “drive the share price further ahead”.

[lbo] 20/9/2016 16:32

"on revenue of £2.96 million the results show a (excluding non-cash share-based payments) loss of £0.75 million. This was improved from a corresponding 2015 period £0.96 million only due to a £0.22 million swing in foreign exchange to a £0.20 million gain. Additionally, after particularly £0.74 million of investment spending more than depreciation+amortisation, net cash reduced by £1.63 million"

[hybrasil] 20/9/2016 05:08

Stefan
Of course - the point I was making is that 450k traded is indicative of serious interest in this share. For every seller there is a buyer!

[stefanzygmunt] 19/9/2016 17:37

Hybrasil, very observant and a good point made but don't you think some of the £450k may have been purchases?
Hey Maiken, did you manage to have your chat with management, I hope they gave you the time to discuss what's going on, or you could just read this mornings RNS!!

[hybrasil] 19/9/2016 16:29

£450,000 worth of shares traded today. That's either Hargreaves or pageant selling. We will see

[lbo] 19/9/2016 11:58

Circa £1.6m was cash burn in the last 6 months and it was circa £1.15m in the corresponding six months last year.

[hybrasil] 19/9/2016 11:41

I agree.

While you might not like to hear the other side and even totally disagree with it - it is always worth considering that there are other views on your beloved share.

I hope to go to Poland in early october to have a little pizza.

[maiken] 19/9/2016 09:03

stefanzygmunt.please relax.this is a discussion forum.it can be helpful to hear both sides of any argument.Noone here is trying to ramp or de-ramp [a pointless exercise anyway]as far as I can see.
I will try to call management later.Any questions anyone? Personally I want to understand better any losses [or other impact]upon disposal of corporate stores to sub-franchisees.
I agree that minimal reduction in EBITDA losses is disappointing but increase in sub-franchisees is good.

[stefanzygmunt] 19/9/2016 08:38

Shut up LBO and check the exchange rates used!! By the way it's only 5 to the pound now ha ha

[lbo] 19/9/2016 08:09

The forecasted losses for another 2 years look right

[lbo] 19/9/2016 08:09

Results look ok until you get to the actual figures. Revenue up by £1.2m but EBITDA losses only fell by £50k. And that's even after the weak Pound against the Zloty with the Brexit vote.

[muscletrade] 19/9/2016 07:59

Does anyone here remember Caffe Nero. ....so many similarities and my most successful investment..... ever.

[stefanzygmunt] 19/9/2016 07:55

Nice try LBO ha ha

[lbo] 18/9/2016 08:25

"we must recognise the impact that new store openings will have on the bottom line before those stores hit breakeven"

[maiken] 17/9/2016 11:06

did the forecast you saw contain any projected numbers for new store openings LBO ?

[lbo] 08/9/2016 16:43

Pizza Hut are in the same takeaway and delivery market in Poland as Dominos

[maiken] 08/9/2016 11:40

Interesting LBO.I still think it entirely possible DPP will have another placing to fund their own new openings and see them through to break-even.I don't necessarily see this as bad news.Having the financial firepower to accelerate openings could speed up this process even if it means higher short term losses.
personally not worried about Pizza Hut.Restaurants and home delivery do seem increasingly separate markets.
Did the forecast you saw contain any projections for new openings?

[lbo] 02/9/2016 15:05

I see losses still forecast for 2016 of £2.2m and 2017 of another £2m

Looks like Amrest Holdings is also getting support from YUM brands in rolling out Pizza Hut

[haroldthegreat] 31/8/2016 14:05

ok too optimistic but we are nearly back to the recent high. will settle for half a p a day.

[hybrasil] 09/8/2016 21:42

S. I don't think so

[haroldthegreat] 09/8/2016 20:34

An apple a day keeps the doctor away.I prefer 2p a day on domino Poland.