Domino’s Pizza Poland is listed on the Aim market of the London Stock Exchange and has a market capitalisation of £50m. 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. The company released half year results to 30 June 2023 on 26 September and we were delighted to welcome Nils Gornall, CEO, and Edward Kacyrz CFO, to present at the latest Yellowstone Advisory webinar for private investors. A recording of the webinar can be found here.
Nils Gornall joined the company 12 months ago as CEO when DP Poland bought the Croatian operations which he started. He has over 25 years experience successfully running Dominos Stores in Australia. He first worked in a Dominos aged 15, opened his first store aged 22 and owned 20+ franchises in Australia, including half of the top 10 performing stores. Edward is a chartered accountant with 18 years of experience and has worked for the likes of Mars, Levi Strauss and Kimberley Clark in Poland. He has held a number of financial and strategy roles.
The new team are twelve months into the turnaround and have laid some solid foundations for future growth. The board has been refreshed including bringing in people with global Dominos experience. Stores which were in the wrong locations, mainly shopping malls, have been closed and there has been investment in the remaining stores to bring them up to the required standard. Most importantly there has been an increased focus on improving the customer value proposition by providing high quality pizzas at a attractive prices, delivered quickly. The focus for the next twelve months is to continue to grow the average weekly order count (AWOC), which is a key driver of profitability, reduce delivery times further and improve customer satisfaction. Delivering these will improve profitability and enable faster growth through franchising.
The first half of 2023 included a number of significant improvements in operating performance. Group revenue grew 26.5% to £21m and LFL system sales grew 17.7%, AWOC was up 14.1% to 698 and Group EBITDA improved 171% to £1.1m. There was a 11.3% increase in Polish order count and this accounted for 60% of the LFL growth. Non delivery channels grew by 22.6% slightly ahead of the delivery growth of 15.8%. The early signs of operating leverage came through with direct costs…
