TIDMDPEU
RNS Number : 9060Y
DP Eurasia N.V
18 May 2021
For Immediate Release 18 May 2021
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Trading Update for the four months ended 30 April 2021
Significant System Sales Growth Achieved
For the period ended
30 April
-------------------------------
2021 2020 Change
-------------- --------------- ---------
(in millions of TRY,
unless otherwise indicated)
Number of stores 775 757 18
Group system sales (1)
Turkey 469.0 284.1 65.1%
Russia 180.6 152.4 18.5%
Azerbaijan & Georgia 12.1 8.6 39.9%
Total 661.6 445.1 48.7%
Group system sales like-for-like
growth(2)
Group(5) 49.4% 2.5%
Turkey 62.1% 8.3%
Russia (based on RUB) 13.1% -17.1%
Highlights
-- Significant growth achieved; Group system sales increased
48.7%, on the back of unprecedented demand in Turkey and against
very weak comparables for March and April 2020 in both Turkey and
Russia
o Turkish systems sales growth of 65.1%
o Russian system sales growth of 18.5% (7.5% based on RUB)
-- Group online system sales(4) growth of 72.3%
o Turkish online system sales growth of 103.9%
o Russian online system sales growth of 29.1% (17.1% based on
RUB)
-- Online delivery system sales(3) as a share of delivery system
sales at 77.3% (April 2020: 75.2%) reflects our continued strong
online offering and positioning
-- Strong liquidity position - TRY 80 million of cash at hand
and additional available bank lines of TRY 164 million as at 30
April 2021
Commenting on the update, Chief Executive Officer, Aslan Saranga
said:
"The first four months of 2021 have been very encouraging.
Trading performance has continued to significantly improve in
Turkey and Russia since our preliminary results release in March.
Our Turkish operations have maintained their strong start to the
year with a March/April like-for-like growth rate of 76.8%, driven
mainly by delivery and, also, tailwinds from a temporary reduction
in the VAT rate to 1% from 8%. Heightened operational constraints
experienced in Turkey have not impacted negatively on business
performance and we continue to benefit from a Covid inspired shift
to home delivery that has affected all sectors, as previously
indicated. Also, encouragingly, in our Russian operations we have
continued to see an improving trend with a March/April
like-for-like growth rate of 21.2% and we have surpassed the sales
per store levels of pre-Covid 2020 in the first four months of
2021. However, it is important to note that these rates follow
significantly depressed 2020 comparables due to the initial
Covid-19 outbreak in both countries.
"Our online channels continue to be the main driver behind our
like-for-like growth rates. Online system sales as a percent of
delivery system sales have reached 73.4% and 92.3% in Turkey and
Russia, respectively, with both figures registering approximately a
four percentage point increase over the last twelve months.
"We continue to add new product offerings to drive order flow
and repeat customers. In Turkey, we launched a calzone-like
product, Tostilla, and the new pasta product, Makarnos, in April
and May, respectively. In Russia, we launched the Cheese Crust
pizza in March.
"The strong performance in Turkey is continuing to generate a
very robust franchisee demand. Whilst we have opened two new stores
in Turkey during the first four months, we remain on target for our
store opening guidance of 30 - 40 stores for the year with a
further 16 stores leased, all of which are franchised. We have also
added two new stores in Russia. Our first half performance will be
the determining factor in the outlook for store openings in Russia
for the full year.
"Whilst the Board is conscious of the potential continued risks
posed by the pandemic, we remain on target for our 2021 guidance in
our markets and the Board expects the full year adjusted EBITDA(6)
for 2021 to be in line with expectations."
Enquiries
DP Eurasia N.V.
Selim Kender, Chief Strategy Officer &
Head of Investor Relations +90 212 280 9636
Buchanan (Financial Communications)
Richard Oldworth / Vicky Hayns / Tilly +44 20 7466 5000
Abraham dp@buchanan.uk.com
A conference call for investors and analysts will be held at
9.00am this morning, which will be accessible using the following
details:
Conference call: UK Toll Free: 08003589473
UK Toll: 03333000804
Participant PIN code: 95009499#
URL for international dial in numbers:
https://event.sharefile.com/share/view/s84220495bb4b47b2abfff950788bcd35
A recording of the conference call will subsequently be
available at www.dpeurasia.com .
Notes to Editors
DP Eurasia N.V. is the exclusive master franchisee of the
Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia. The
Company was admitted to the premium listing segment of the Official
List of the Financial Conduct Authority and to trading on the main
market for listed securities of the London Stock Exchange plc on 3
July 2017. The Company (together with its subsidiaries, the " Group
" ) is the largest pizza delivery company in Turkey and the third
largest in Russia. The Group offers pizza delivery and takeaway/
eat-in facilities at its 775 stores (570 in Turkey, 192 in Russia,
nine in Azerbaijan and four in Georgia as at 30 April 2021), and
operates through its owned corporate stores (28%) and franchised
stores (72%). The Group maintains a strategic balance between
corporate and franchised stores, establishing networks of corporate
stores in its most densely populated areas to provide a development
platform upon which to promote best practice and maximise
profitability. The Group has adapted the Domino's Pizza globally
proven business model to its local markets.
Performance Review
Store count As at 30 April
--------------------------------------------------------
2021 2020
Corporate Franchised Total Corporate Franchised Total
Turkey 104 466 570 122 420 542
Russia 116 76 192 121 82 203
Azerbaijan - 9 9 - 8 8
Georgia - 4 4 - 4 4
Total 220 555 775 243 514 757
Delivery channel mix and online like-for-like growth
The following table shows the Group's delivery system sales (3)
, broken down by ordering channel and by the Group's two largest
countries in which it operates, as a percentage of delivery system
sales for the periods ended 30 April 2021 and 2020:
For the period ended 30 April
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
26.2 7.7 22.4 27.8 11.4 23.0
Store % % % % % %
Group's online 26.6 70.5 37.8 25.2 76.7 43.6
Online platform % % % % % %
46.9 21.9 39.5 44.1 31.5
Aggregator % % % % 11.9% %
73.4 92.3 77.3 69.3 88.6 75.2
Total online % % % % % %
0.4 0.3 3.0 1.8
Call centre % - % % - %
Total 100% 100% 100% 100% 100% 100%
The following table shows the Group's online like-for-like
growth (2) , broken down by the Group's two largest countries in
which it operates, for the periods ended 30 April 2021 and
2020:
For the period ended
30 April
--------------------------------
2021 2020
--------------------- ---------
Group online system sales like-for-like
growth(2)
Group(5) 77.8 % 24.0 %
Turkey 97.6 % 29.0 %
Russia (based on RUB) 21.6 % 7.2 %
Liquidity
The Group continues to have a strong liquidity position, having
access to cash at hand and additional borrowing capacity available
from its Turkish banks. As at 30 April 2021, the Group had TRY 80
million of cash at hand and additional available bank lines of TRY
164 million.
The Group's strong liquidity position enables it to prepay its
bank borrowings in Russia if required, and still maintain a strong
liquidity position. The Group obtained a waiver from Sberbank with
respect to its covenants for the first two quarters of 2021 and is
in negotiations to reset the covenants or repay the remaining loan.
The principal outstanding under the Sberbank loan currently amounts
to RUB 0.9 billion, of which RUB 0.2 billion is supported by a cash
collateral deposit.
Notes
(1) System sales are sales generated by the Group's corporate
and franchised stores to external customers and do not represent
revenue of the Group.
(2) Like-for-like growth is a comparison of sales between two
periods that compares system sales of existing system stores. The
Group's system stores that are included in like-for-like system
sales comparisons are those the Group considers to be mature
operations. The Group considers mature stores to be those stores
that have operated for at least 52 weeks preceding the beginning of
the first month of the period used in the like-for-like comparisons
for a certain reporting period, assuming the relevant system store
has not subsequently closed or been "split" (which involves the
Group opening an additional store within the same map of an
existing store or in an overlapping area).
(3) Delivery system sales are system sales of the Group
generated through the Group's delivery distribution channel.
(4) Online system sales are system sales of the Group generated
through its online ordering channel.
(5) Group like-for-like growth is a weighted average of the
country like-for-like growths based on store numbers as described
in Note (2).
(6) EBITDA, adjusted EBITDA and non-recurring and non-trade
income/expenses are not defined by IFRS. These items are determined
by the principles defined by the Group management and comprise
income/expenses which are assumed by the Group management to not be
part of the normal course of business and are non-trading items.
These items which are not defined by IFRS are disclosed by the
Group management separately for a better understanding and
measurement of the sustainable performance of the Group.
Appendices
Exchange Rates
For the period ended 30 April
----------------------------------------------------------
2021 2020
---------------------------- ----------------------------
Currency Period End Period Average Period End Period Average
----------- --------------- ----------- ---------------
EUR/TRY 9.909 9.100 7.576 6.893
RUB/TRY 0.109 0.100 0.094 0.091
EUR/RUB 90.151 89.983 80.049 75.395
Delivery - Take away / Eat in mix
For the period ended 30 April
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
82.8 78.8 81.5 67.3 74.0 69.6
Delivery % % % % % %
Take away / Eat 17.2 21.2 18.5 32.7 26.0 30.4
in % % % % % %
Total(2) 100% 100% 100% 100% 100% 100%
Forward looking statements
This press release includes forward-looking statements which
involve known and unknown risks and uncertainties, many of which
are beyond the Group's control and all of which are based on the
Directors' current beliefs and expectations about future events.
They appear in a number of places throughout this press release and
include all matters that are not historical facts and include
predictions, statements regarding the intentions, beliefs or
current expectations of the Directors or the Group concerning,
among other things, the results of operations, financial condition,
prospects, growth and strategies of the Group and the industry in
which it operates.
No assurance can be given that such future results will be
achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements.
Forward-looking statements contained in this press release speak
only as of the date of this press release. The Company and the
Directors expressly disclaim any obligation or undertaking to
update these forward-looking statements contained in this press
release to reflect any change in their expectations or any change
in events, conditions, or circumstances on which such statements
are based.
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END
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