TIDMDPP
RNS Number : 7042G
DP Poland PLC
21 July 2023
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 2023 Trading Update
DP Poland, the operator of pizza stores and restaurants across
Poland and Croatia, announces a trading update for first half of
2023.
DP Poland's Chief Executive Officer, Nils Gornall, said:
"I'm delighted to announce record sales in the first half of
2023. Like-for-like sales in Poland increased 18% compared with the
prior year, supported by order count growth of 11.3%.
We have continued to execute on our strategy of building a High
Volume Mentality business, delivering a compelling value
proposition for our customers based on fantastic quality pizza
delivered quickly. These efforts have resulted in an improvement in
customer satisfaction ratings and increased consumer loyalty which
place the business in a strong position to capitalise on the strong
potential we see in both Poland and Croatia.
At the same time we improved our footprint by the opening of one
store and full refurbishment of four stores in Poland as well as
opening our fourth store in Croatia. We expect to open another two
stores in Poland and one in Croatia by the end of this year.
High inflation in energy and food have eventually started to
abate in May, and whilst labour rates are still under inflationary
pressures we are constantly focusing on further optimization
projects. We expect performance to continue improving and remain
optimistic about the outlook for the Group."
Highlights
-- LFL System Sales(1) in Poland increased by 16.8% in Q2 2023
compared to Q2 2022, driven by a strong increase in order
counts
-- Inflationary pressures in food and energy have begun to
recede, though remain in labour markets
-- Two store openings (in each of Poland and Croatia) in H1 2023 and three planned for H2
-- Four store refurbishments completed in H1 2023
-- Investment in an updated scooter fleet and IT system enhancements
-- Cash at bank of GBP2.5 million as at 30(th) June 2023 (31(st) December 2022: GBP4.1 million)
Trading Update H1 2023
Poland
Q1 2023 Q2 2023 H1 2023
--------------- ----------------
PLNm % YoY PLNm % YoY PLNm % YoY
change change change
----------------------- ----- -------- ----- -------- ------ --------
Total System sales(1) 53.1 15.4% 55.0 14.4% 108.1 14.9%
LFL System sales(2) 52.2 19.4% 53.7 16.8% 105.8 18.0%
non-delivery 16.9 47.7% 18.8 6.3% 35.7 22.6%
delivery 35.3 9.3% 34.8 23.3% 70.1 15.8%
----------------------- ----- -------- ----- -------- ------ --------
H1 2023
Million % YoY
Units change
------------------------ -------- --------
Total System orders(1) 1.85 7.7%
LFL System orders(2) 1.81 11.3%
------------------------ -------- --------
(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 Z oty, matching
trading periods for the same stores
Current trading remains strong, with double digit sales growth
underpinned by higher order counts. System Sales increased by 14.9%
in H1 2023 vs. H1 2022, with the growth split between sales
channels. LFL Sales in H1 2023 were up by 18.0% vs 2022.
Inflationary costs have begun to diminish in food and energy,
however, labour inflationary pressures have remained.
In the first half of 2023, one new store was opened in the
Polish market and a contract signed for an additional store opening
to take place in Q3. A third store opening is planned for Q4 2023.
At the same time, four ex-Dominium stores have been fully upgraded
to Domino's standards and two stores were closed as part of the
store network optimisation plan with a future relocation
planned.
Croatia
Q1 2023 Q2 2023 H1 2023
--------------- ---------------
EURm % YoY EURm % YoY EURm % YoY
change change change
-------------------- ----- -------- ----- -------- ----- --------
Total System sales 0.49 52.9% 0.55 37.7% 1.04 44.5%
LFL System sales 0.37 15.7% 0.40 5.5% 0.78 10.2%
-------------------- ----- -------- ----- -------- ----- --------
(1) System Sales - total retail sales including sales from
corporate and sub-franchised stores. unaudited
(2) Like-for-like System Sales growth in Euro, matching trading
periods for the same stores between 1 January and 30 June 2022 and
1 January and 30 June 2023
(3) Difference between Total System Sales growth and LFL system
sales growth driven by 3(rd) store opening in June 2022
The transition of the Croatian currency from the Kuna to the
Euro at the beginning of 2023 contributed to weaker sales in
January, whilst also being impacted by inflation. However, since
February, Croatia has seen strong double digit LFL Sales growth,
excluding a temporary drop in June resulting from two long public
holiday weekends.
H1 2023 System Sales increased by 44.5% vs. H1 2022, benefitting
from the third store opening in June 2022. LFL Sales also increased
strongly, up 10.2% against the prior period.
At the start of 2023, the Croatian business began utilising the
benefits of group purchasing, which should meaningfully reduce
direct costs.
A fourth store opened in Croatia at the end of June and has
reported strong sales since launch. A fifth store is planned to be
opened at the end of Q3.
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: +44 (0) 20 3393 6954
Email: ir@dppoland.com
Singer Capital Markets (Nominated Adviser and Broker)
Shaun Dobson / Jen Boorer
Tel: +44 (0) 20 7496 3000
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 117 stores and restaurants throughout cities and
towns in Poland and Croatia.
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END
TSTZZGZNDGGGFZM
(END) Dow Jones Newswires
July 21, 2023 02:00 ET (06:00 GMT)
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