Dominos Pizza Poland is listed on the Aim market of the London Stock Exchange and has a market capitalisation of £100m. The company owns the Dominos master franchise for Poland and Croatia. There are currently 112 Dominos stores in Poland and 4 Dominos stores in Croatia.
We were delighted to welcome Nils Gornall, CEO, and Edward Kacyrz, CFO, to present at the latest Yellowstone Advisory webinar. A recording of the webinar can be found here.
CEO Nils has been in charge for 2 years but he has 30 years of Dominos Experience and started work in his fist Dominos store aged 14 in Australia. He has owned 20 Dominos franchisees and pretty much done every job there is to do in a Dominos store. In 2020 he bought the Dominos master franchise for Croatia and opened the first store there in July 2020. In 2022 he sold the Croatia business to DP Poland and became the new CEO. Edward Kacyrz, the CFO, joined at the end of 2022 and has spent his career working in finance and strategy roles mainly in the retail sector. He has a complimentary skill set to Nils.
The first two years of their tenure have been very much about turning the company around but the foundations have now been set for a very successful business. Average Weekly Order Count (AWOC) has grown 40% over the last 2 years and the company is past the breakeven point setting them up well for a positive future. LFL system sales grew almost 20% in 2023 and increased by more than 22% in the first half of 2024. A focus on operational excellence has resulted in store profitability improving significantly and with the recent addition of a new head of the franchise department, DPP is well positioned for expansion and hitting the 200 store target by 2026. With the recent £20.5m fundraise completed the company is also well financed for future expansion.
Looking at the key points from the 2023 results, revenues grew 25% to £44.6m, AWOC in Poland grew 19% to 731 and group EBITDA grew 108% to £3.5m. The drop through to EBITDA was helped by COGS growth of 17.9% below revenue growth as food prices fell slightly from midway through the year. Payroll costs were up 32% due to the impact of an increase in the minimum wage. On the balance sheet there were…
