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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Dp Poland Plc | LSE:DPP | London | Ordinary Share | GB00B3Q74M51 | ORD 0.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 10.50 | 10.00 | 11.00 | 10.60 | 10.50 | 10.50 | 1,580,397 | 08:00:07 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Eating Places | 35.69M | -4.36M | -0.0061 | -17.21 | 74.81M |
From Apr 2019 to Apr 2024
TIDMDPP
RNS Number : 6888D
DP Poland PLC
30 October 2020
DP Poland plc
("DP Poland" or the "Group")
Interim results for the half year to 30 June 2020
System Sales in H1 2020 up 2.51%
Positive like-for-like growth in Q2 and strong 8.9% performance in Q3
Polish Anti-trust clearance received on the potential acquisition of Dominium S.A.
Financial highlights:
-- System Sales(1) up 2.51% to 42m PLN H1 2020 (41m PLN H1 2019)
-- -1.8% like-for-like (2) (-1,2% pre- split(4) ) growth in System Sales H1 2020 on H1 2019 with high positive like-for-like growth in Q3
o - 4.1% like-for-like in Q1
o + 0.5% like-for-like in Q2
o + 8.9% like-for-like in Q3
-- Over half of the Group's stores with double digit like-for-like growth in Q3 -- System Sales growth continuing in October to date -- Pre-IFRS 16 Group EBITDA(3) losses increased modestly by 1.5% in H1 2020 over H1 2019 -- Cash at bank as at 30 June 2020 of GBP2.7m (GBP3.6m as at 31 December 2019)
-- Group performance in H1 2020 broadly in line with management's expectations, despite impact of COVID-19
Operational highlights:
-- 84% of delivery H1 2020 sales ordered online (80% H1 2019)
-- Positive interaction with food aggregator Pyszne.pl (takeaway.com) which has provided additional sales
-- Started interaction with 2nd food aggregator Glovo -- Food and labour costs, and some rent costs, continue to soften
Iwona Olbryś, Chief Executive of DP Poland said:
"With the delivery market growing and the use of digital and online payments increasing we believe that we are well positioned. Alongside our delivery expertise, we have a strong brand, an experienced and dedicated team and a reputation for quality of product and services. We have all the ingredients to continue growing.
Thus, despite the ongoing COVID-19 crisis, we will continue to work on growing Domino's in Poland.
Work continues on the potential acquisition of Dominium S.A., with both parties delighted to receive Polish Anti-trust clearance recently. Further announcements will be made as and when appropriate.
(1) System Sales - total retail sales including sales from corporate and sub-franchised stores, unaudited.
(2) Like-for-like growth in PLN, matching trading periods for the same stores between 1 January and 30 June 2019 and 1 January and 30 June 2020.
(3) Excluding non-cash items, non-recurring items and store pre-opening expenses.
(4) When a store's delivery area is split, by opening a second store in its original delivery area, a significant portion of the original store's customer database is allocated to the new store, resulting in the original store losing sales. Calculating pre-split like-for-likes allows us to see sales growth by matched delivery areas, irrespective of the opening of new stores. Pre-split like-for-likes are a standard measure adopted by many major Domino's Pizza master franchisees
(5) Exchange rate average for H1 2020 GBP1: 5,0455
(6) Exchange rate average for H1 2019 GBP1: 4,9158
Enquiries:
DP Poland PLC
+44 (0) 20 3393 6954
Nick Donaldson, Non-Executive Chairman / Iwona Olbryś, CEO
N+1 Singer
+44 (0) 20 7496 3000- NOMAD and Broker
Shaun Dobson / George Tzimas
Notes to editors:
DP Poland, through its wholly owned subsidiary DP Polska S.A., has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland. There are currently 69 Domino's Pizza stores, 50 corporately managed (2 of which are under management contract) and 19 sub-franchised.
Chief Executive's Review
Group performance
Group performance in H1 2020 was broadly in line with management's expectations, despite the impact of COVID-19. The business operated during the period with minimal interruption.
System Sales increased by 2.51% to 42m PLN in H1 2020 from 41m PLN in H1 2019.
Like-for-like(2) System Sales in the first quarter of the year were negative at -4.1%, reflecting the initial impact of COVID-19. However, like-for-like System Sales growth resumed in the second quarter of the year, resulting in positive 0.5% like-for-like System Sales growth for that period, continuing in the third quarter with a strong 8.9% increase in sales.
Overall, Pre-IFRS 16 Group EBITDA losses increased in the period by 3.4% year on year at constant exchange rates(5) . At actual exchange rates(5) , (6) , Pre-IFRS 16 Group EBITDA losses increased by 1.5% year on year.
Store performance
System Sales in the H1 2020 period increased by 2.51% year on year. Pre-IFRS 16 corporate store EBITDA decreased by 11.4% year on year.
As a result of the outbreak of the COVID-19 crisis early in the year and the consequent lockdown in Poland, like-for-like System Sales in the first half of the year were negative at -1.8%(2) (-1.2% pre-split(4) ). However, we recovered quickly from the initial lockdown, achieving positive like-for-like sales in Q2 and better like-for-like sales in Q3. System Sales growth continues in October to date.
Like-for-like System Sales growth per quarter were as follows:
Q1 -4.1% Q2 +0.5% Q3 +8.9%
Performance in Warsaw since the COVID-19 lockdown remains poor on account of our stores in commercial areas, which remain quiet. However, we are pleased to observe outstanding performance in other cities: notwithstanding the COVID-19 impact, we have cities achieving double digit growth in H1, including Wroc aw, Tczew, Bia ystok, Toruń, Elbl g, Katowice and Poznań.
Marketing and product innovation
In 2020 we are continuing our Influencer campaign with two Polish chefs: Matteo Brunetti - a Polish/Italian celebrity chef, and a MasterChef Poland competition finalist - and Gaja Kuroń, also a celebrity chef, who took part in the same competition.
Matteo and Gaja each created one pizza that became part of our Limited Edition in Q2 - "Mamma Mia" by Matteo Brunett, and "Swojska" by Gaja Kuroń.
We used content, Influencers and channels that enabled us to reach the younger segment of our customers. This was a positive move, especially during the initial COVID-19 lockdown, when students were staying at home and studying online. We introduced a mobile phone game which allows users to 'catch' pizza slices in their mouths and earn higher discounts! We cooperate with Influencers, who have significant support on social media, especially with our younger customers. They post on their social media platforms information about our current promotions, fast and contactless delivery, online ordering and our artificual reality game.
In addition, in 2020 we are focusing in our marketing campaign on the pleasure that comes with eating pizza. This was highlighted in our new video, as well as the fast delivery and high quality of our products. In Q2 we moved from weekly offers to more focused daily promotions. This has proved to be a good decision during the COVID-19 pandemic, when customers' behaviour started to shift with a decrease in weekend sales and greater activity during the working week and allowed us to make better use of the content on our platforms and our marketing budget.
Since the outbreak of COVID-19, we have worked hard to communicate with our staff and customers regarding our safe, contactless delivery offering, the high standards of hygiene in our stores and our support of healthcare workers by delivering pizzas to hospitals for staff members.
2020 to date has also been notable for our digital performance. As in previous years we have continued to grow this channel. We are building a new digital platform to respond to the market growth and reinforce our leadership in this field. Our new website will deliver greater functionality than our existing one, and allow us to digitalise further our business operations. It will gather valuable customer insight, but the ultimate goal is to provide better customer experience. COVID-19 has created a great opportunity for the delivery market, as well as digital and online payments, and we are working every day to be the best in class.
Food aggregators
As a part of the growing delivery market, food aggregators have become important 'search engines' for food. We have been working on a test with Pyszne.pl (takeaway.com) for some months and we have recently started with a second aggregator test with Glovo. Our interaction to date has been positive. Our objective is to generate incremental orders with higher average spend; we are broadly satisfied with the early result.
Potential acquisition of Dominium S.A.
Work continues on the possible acquisition of Dominium S.A., with both parties delighted to receive Polish Anti-trust clearance recently. Further announcements will be made as and when appropriate.
Current trading and outlook
The year 2020 is undoubtedly without precedent. We are all facing the COVID-19 presence and its impact on our lives and our businesses. Further Government restrictions were imposed last week across Poland which affect the food and beverage industry, but these new rules do not currently apply to delivery and take-away food. Meanwhile, the Polish economy continues to be perceived as more resilient than many of the other European countries. At Domino's we believe that we have great products, we are expert in delivery and digital platforms, and our team has proved the ability of our brand to recover and to perform well under COVID-19.
The delivery market is growing, digital and online payments are growing and in this environment we believe that we are in a good position. Alongside our delivery expertise, we have a strong brand, an experienced and dedicated team and a reputation for quality of product and services. We have all the ingredients to continue growing.
Thus, despite the ongoing COVID-19 crisis, we will continue to work on growing Domino's in Poland.
Hot Features
Premium
Group Income Statement
for the six months ended 30
June 2020
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30.06.20 30.06.19 31.12.19
Notes GBP GBP GBP
Revenue 2 6,991,964 6,887,081 14,006,659
Direct costs (6,109,101) (5,820,311) (11,820,235)
Selling, general and administrative
expenses - excluding:
store pre-opening expenses, depreciation,
amortisation and share based payments (1,268,929) (1,332,591) (2,605,692)
GROUP EBITDA - excluding non-cash items,
non-recurring items and store pre-opening
expenses (386,066) (265,821) (419,268)
------------------------------------------------- ------ ------------ ------------ -------------
Store pre-opening expenses - (30,971) (53,633)
Other non-cash and non-recurring
items (50,373) (220,043) (189,518)
Finance income 51,091 78,071 160,186
Finance costs (245,229) (106,420) (600,343)
Foreign exchange gains
/ (losses) (39,768) (18,446) (10,825)
Depreciation, amortisation
and impairment (1,007,404) (1,214,320) (2,246,949)
Share based payments (80,899) (72,902) (151,418)
Loss before taxation (1,758,648) (1,850,852) (3,511,768)
------ ------------ ------------ -------------
Taxation 3 - - -
Loss for the period (1,758,648) (1,850,852) (3,511,768)
------ ------------ ------------ -------------
(0.70 (0.86 (1.51
Loss per share Basic 4 p) p) p)
(0.70 (0.86 (1.51
Diluted 4 p) p) p)
Group Statement
of comprehensive income
for the six months ended
30 June 2020
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30.06.20 30.06.19 31.12.19
GBP GBP GBP
--------------------------------- ------------ ------ ------------ ------------ -------------
Loss for the period (1,758,648) (1,850,852) (3,511,768)
Currency translation
differences 226,001 159,294 (213,974)
-----------------------------------------------
Other comprehensive expense for the period,
net of tax to be reclassified to profit or loss
in subsequent periods 226,001 159,294 (213,974)
--------------------------------------------------------- ------------ ------------
Total comprehensive income for
the period (1,532,647) (1,691,558) (3,725,742)
------------------------------------------------ ------ ------------ ------------ -------------
Group Balance Sheet
at 30 June 2020
Unaudited Unaudited Audited
30.06.20 30.06.19 31.12.19
GBP GBP GBP
------------------------------------------ ------------- ------------- -------------
Non-current assets
Intangible assets 520,907 568,938 520,376
Property, plant and equipment 5,678,375 6,459,661 6,018,901
Leases - right of use
assets 5,576,492 3,300,098 5,807,783
Trade and other receivables 1,718,518 1,853,389 1,651,358
Finance lease
receivables 514,625 - 538,988
---------------------------------------------- ------------- ------------- -------------
14,008,917 12,182,086 14,537,406
Current assets
Inventories 364,977 404,860 383,287
Trade and other receivables 2,288,573 2,443,035 2,288,085
Finance lease
receivables 70,597 - 73,549
Cash and cash equivalents 2,688,502 5,057,831 3,592,402
------------------------------------------- ------------- ------------- -------------
5,412,649 7,905,726 6,337,323
Total assets 19,421,566 20,087,812 20,874,729
---------------------------------------------- ------------- ------------- -------------
Current liabilities
Trade and other
payables (1,975,915) (1,689,412) (1,776,117)
Borrowings (68,796) (123,394) (58,258)
Lease liabilities (1,055,825) (1,433,843) (1,005,525)
Provisions (13,711) (22,666) (16,717)
---------------------------------------------- ------------- ------------- -------------
(3,114,247) (3,269,315) (2,856,617)
------------------------------------------ ------------- ------------- -------------
Non-current liabilities
Lease liabilities (6,084,302) (2,457,005) (6,315,270)
Borrowings (52,726) (180,056) (80,803)
---------------------------------------------- ------------- ------------- -------------
(6,137,028) (2,637,061) (6,396,073)
Total liabilities (9,251,275) (5,906,376) (9,252,690)
---------------------------------------------- ------------- ------------- -------------
Net assets 10,170,291 14,181,436 11,622,039
---------------------------------------------- ------------- ------------- -------------
Equity
Called up share
capital 1,267,779 1,247,444 1,267,779
Share premium
account 36,838,450 36,838,450 36,838,450
Capital reserve - own
shares (48,163) (48,163) (48,163)
Retained earnings (28,099,139) (24,214,926) (26,421,390)
Currency translation
reserve 211,364 358,631 (14,637)
------------------------------------------- ------------- ------------- -------------
Total equity 10,170,291 14,181,436 11,622,039
---------------------------------------------- ------------- ------------- -------------
Group Statement of Cash Flows
for the six months ended 30
June 2020
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30.06.20 30.06.19 31.12.19
GBP GBP GBP
------------------------------------------ ------------- ------------- -------------
Cash flows from operating
activities
Loss before taxation
for the period (1,758,648) (1,850,852) (3,511,768)
Adjustments for:
Finance income (51,091) (78,071) (160,186)
Finance costs 245,229 106,420 600,343
Depreciation and amortisation
and impairment 1,007,404 1,214,320 2,246,949
(Profit) on disposal of property,
plant and equipment - - -
Share based payments
expense 80,899 72,902 151,418
------------------------------------------- ------------- ------------- -------------
Operating cash flows before movement
in working capital (476,207) (535,281) (673,244)
Change in inventories 27,092 61,539 60,368
Change in trade and other receivables 48,377 (612,654) (763,323)
Change in trade and other payables
and provisions 146,935 (457,019) (282,634)
--------------------------------------------
Cash (used in) / provided by
operations (253,803) (1,543,415) (1,658,833)
Taxation paid - - -
Net cash from operating activities (253,803) (1,543,415) (1,658,833)
Cash flows from investing activities
Payments to acquire software (30,931) (1,852) (9,685)
Payments to acquire property, plant
and equipment (121,699) (491,597) (1,264,315)
Payments to acquire intangible fixed
assets - (11,451) (43,794)
Proceeds from disposal of property plant
and equipment - - 6,641
Net movement in loans to sub-franchisees 70,493 53,389 167,925
Interest received 4,200 15,350 24,501
---------------------------------------------- ------------- ------------- -------------
Net cash used in investing
activities (77,937) (436,161) (1,118,727)
Cash flows from financing activities
Net proceeds from issue of ordinary
share capital - 5,492,320 5,512,655
Repayment of borrowings and
lease liabilities (374,053) (323,563) (497,448)
Interest paid (245,229) (124,866) (586,396)
---------------------------------------------- ------------- ------------- -------------
Net cash (used in) / from financing
activities (619,282) 5,043,891 4,428,811
Change in cash and cash equivalents (951,022) 3,064,315 1,651,251
Exchange differences on cash
balances 47,122 35,600 (16,765)
Cash and cash equivalents at beginning
of period 3,592,402 1,957,916 1,957,916
Cash and cash equivalents at end of
period 2,688,502 5,057,831 3,592,402
--------------------------------------------- ------------- ------------- -------------
Group Statement of Changes in Equity
for the six months ended 30
June 2020
Share Currency Capital
reserve
Share premium Retained translation -
capital account earnings reserve own shares Total
GBP GBP GBP GBP GBP GBP
---------------------- ---------- ----------- ------------- ------------ ------------ ------------ ------------
At 31 December
2018 764,111 31,829,463 (22,053,832) 199,337 (48,163) 10,690,916
Adjustment to
reserves on adoption
of IFRS 16 - - (383,144) - - (383,144)
---------- ----------- ------------- ------------ ------------ ------------
At 1 January 2019
- as restated 764,111 31,829,463 (22,436,976) 199,337 (48,163) 10,307,772
Shares issued 483,333 5,316,667 - - - 5,800,000
Expenses of share
issue - (307,680) - - - (307,680)
Share based payments - - 72,902 - - 72,902
Translation
difference - - - 159,294 - 159,294
Loss for the period - - (1,850,852) - - (1,850,852)
---------------------- ---------- ----------- ------------- ------------ ------------ ------------ ------------
At 30 June 2019
- as presented 1,247,444 36,838,450 (24,214,926) 358,631 (48,163) 14,181,436
Additional adjustment
to reserves on
adoption of
IFRS 16 - - (624,064) - - (624,064)
---------- ----------- ------------- ------------ ------------ ------------
As at 01 July
2019 1,247,444 36,838,450 (24,838,990) 358,631 (48,163) 13,557,372
Shares issued 20,335 - - - - 20,335
Share based payments - - 78,516 - - 78,516
Translation
difference - - - (373,268) - (373,268)
Loss for the period - - (1,660,916) - - (1,660,916)
---------------------- ---------- ----------- ------------- ------------ ------------ ------------ ------------
At 31 December
2019 1,267,779 36,838,450 (26,421,390) (14,637) (48,163) - 11,622,039
Share based payments - - 80,899 - - 80,899
Translation
difference - - - 226,001 - 226,001
Loss for the period - - (1,758,648) - - (1,758,648)
At 30 June 2020 1,267,779 36,838,450 (28,099,139) 211,364 (48,163) 10,170,291
---------------------- ---------- ----------- ------------- ------------ ------------ ------------ ------------
Notes to the Interim Financial Statements
for the six months ended 30 June 2020
1 Basis of
preparation
These condensed interim financial statements are unaudited and do not
constitute statutory accounts within the meaning of the Companies Act
2006. These condensed interim financial statements have been prepared
in accordance with IAS 34 'Interim Financial Reporting' and were approved
on behalf of the Board by the Chief Executive Officer Iwona Olbryś.
The accounting policies and methods of computation applied in these condensed
interim financial statements are consistent with those applied in the
Group's most recent annual financial statements for the year ended 31
December 2019.
The financial statements for the year ended 31 December 2019, which were
prepared in accordance with International Financial Reporting Standards,
as endorsed by the European Union ('IFRS'), and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS, have
been delivered to the Registrar of Companies. The auditors' opinion on
those financial statements was unqualified and did not contain a statement
made under s498(2) or (3) of the Companies Act 2006.
Copies of these condensed interim financial statements and the Group's
most recent annual financial statements are available on request by writing
to the Company Secretary at our registered office DP Poland plc, Elder
House, St Georges Business Park, 207 Brooklands Road, Weybridge, Surrey
KT13 0TS, or from our website www.dppoland.com.
2 Revenue
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30.06.20 30.06.19 31.12.19
GBP GBP GBP
====================== ========== =========== ============= ============ ============ ============ ============
Core revenue 6,991,964 6,887,081 13,753,544
Other revenue - - 253,115
6,991,964 6,887,081 14,006,659
---------------------- ---------- ----------- ------------- ------------ ------------ ------------ ------------
Core revenues are ongoing revenues including sales to the public from
corporate stores, sales of materials and services to sub-franchisees,
royalties received from sub-franchisees and rents received from sub-franchisees.
Other revenues are non-recurring transactions such as the sale of stores,
fittings and equipment to sub-franchisees.
3 Taxation
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30.06.20 30.06.19 31.12.19
GBP GBP GBP
====================== ========== =========== ============= ============ ============ ============ ============
Current tax - - -
Deferred tax charge relating
to the origination and reversal
of temporary differences - - -
----------------------------------------------- ------------- ------------
Total tax charge in income statement - - -
----------------------------------------------- ------------- ------------ ------------ ------------ ------------
4 Earnings per ordinary
share
The loss per ordinary share has been calculated as follows:
Unaudited Unaudited Audited
6 months 6 months
to to Year to
30.06.20 30.06.19 31.12.19
---------------------- ---------- ----------- ------------- ------------ ------------ ------------ ------------
Profit / (loss) after tax (GBP) (1,758,648) (1,850,852) (3,511,768)
Weighted average number of shares in
issue (excluding EBT held shares) 251,072,868 215,867,842 232,432,469
Basic and diluted earnings per (0.70 (0.86 (1.51
share (pence) p) p) p)
----------------------------------------------- ------------- ------------ ------------ ------------ ------------
The weighted average number of shares for the period excludes those shares
in the Company held by the employee benefit trust. At 30 June 2020 the
basic and diluted loss per share is the same, because the vesting of
share awards would reduce the loss per share and is, therefore, anti-dilutive.
5 Principal risks and
uncertainties
The principal risks and uncertainties facing the Group are disclosed
in the Group's financial statements for the year ended 31 December 2019,
available from www.dppoland.com and remain unchanged.
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