DP Poland PLC Trading Update

RNS Number : 9377V

DP Poland PLC

11 July 2024

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

DP Poland PLC

("DP Poland", the "Company" or the "Group")

 

Q2 & H1 2024 Trading Update

 

 

DP Poland, the operator of Domino's pizza stores and restaurants across Poland and Croatia, announces a trading update for the six months to 30 June 2024.

 

DP Poland's Chief Executive Officer, Nils Gornall, said:  

 

"DP Poland has achieved a third consecutive year of growth in excess of 15% in the first half. In H1 2024, Like-for-like System Sales increased 22%, driven by System Orders up nearly 19% in Poland. The Group continues to benefit from our consistent strategy, providing a compelling value proposition for our customers based on fantastic quality pizza delivered quickly.

 

Growth accelerated in Q2 2024, with Like-for-like System Sales up 26.5% and average weekly order counts reaching over 850 per store, and on track to achieve our 900 target. While we have faced rising food costs, we remain dedicated to gaining market share and are confident in meeting market expectations for 2024.

 

We are on track to open 16 new stores in 2024, of which four are relocations, expanding our current 111 store count.

 

Overall, we are extremely pleased with sales growth, and look forward to the remainder of the year with confidence. The Group continues to demonstrate what can be achieved in its owned stores, and the planned transition to a sub-franchisee model will accelerate growth and increase return on capital."

 

Financial detail

 

Poland
PLNm	Q1 2024		Q2 2024		H1 2024
	PLNm	% YoY change	PLNm	% YoY change	PLNm	% YoY change
Total System Sales1	62.2	17.3%	68.0	23.7%	130.2	20.6%
LFL System Sales2	60.8	17.9%	66.7	26.5%	127.5	22.2%
non-delivery	19.0	17.7%	21.3	20.3%	40.3	19.1%
delivery	41.8	18.0%	45.4	29.6%	87.2	23.7%
M Orders	Q1 2024		Q2 2024		H1 2024
	M Orders	% YoY change	M Orders	% YoY change	M Orders	% YoY change
Total System Orders1	1.1	14.4%	1.2	20.3%	2.3	17.4%
LFL System Orders2	1.1	14.8%	1.2	22.8%	2.3	18.8%
Croatia
EURm	Q1 2024		Q2 2024		H1 2024
	EURm	% YoY change	EURm	% YoY change	EURm	% YoY change
Total System Sales1	0.9	72.2%	0.9	65.2%	1.8	68.6%
LFL System Sales2	0.5	7.5%	0.6	4.8%	1.1	6.1%

 

¹   System Sales and System Orders - total retail sales or orders including sales or orders from corporate and sub-franchised stores, unaudited

 

²   Like-for-like System Sales growth in Polish Złoty or Euro, matching trading periods for the same stores

 

Financial Highlights

 

·      Poland LFL System Sales grew 22.2% y/y during H1 2024, with Delivery continuing to increase its share of our business, now accounting for two-thirds of System Sales.

·      Order counts also grew strongly and most importantly was the main driver of our revenue growth, with Poland LFL System Orders increasing by 18.8% y/y across H1, and Average Weekly Order Count for Poland continuing to expand, to 825 per store for H1 2024 (and reaching 850 during Q2 2024), up from over 800 during Q4 2023.

·      Croatia's growth of 68.6% was driven by store openings, but the overall LFL System Sales growth of 6.1% was as expected.

·      During H1 2024 we experienced upward pressure on food costs, particularly dairy products.  Despite this, we continue to grow market share without sacrificing store level profitability.

 

Operational Highlights

·      Store numbers remain on track to open 16 locations across 2024 with 12 new sites and 4 stores relocated as we continue to optimise our store network.

·      Investment in new silos in our Lodz commissary was completed. This will allow improved operational flexibility in our stores, reduce flour costs immediately and assist with improved margin over time.

 

The person responsible for arranging the release of this announcement on behalf of the Company is Nils Gornall, CEO.

 

Enquiries:

DP Poland plc   

Nils Gornall, CEO

Tel: [phone]

Email: [e-mail] 

  

Singer Capital Markets (Nominated Adviser and Broker)

Shaun Dobson / Jen Boorer / Oliver Platts

Tel: [phone]

 

Notes for editors

About DP Poland plc

DP Poland has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland and Croatia. The group operates 111 stores and restaurants throughout cities and towns in Poland and Croatia.

 

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END

 

 

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