REG - DP Poland PLC - Trading Update

DP PolandAnnouncement

11/07/2024 07:00

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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 Sales(1)   62.2      17.3%         68.0      23.7%         130.2     20.6%

 LFL System Sales(2)     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 Orders(1)  1.1       14.4%         1.2       20.3%         2.3       17.4%

 LFL System Orders(2)    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 Sales(1)   0.9       72.2%         0.9       65.2%         1.8       68.6%

 LFL System Sales(2)     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: +44 (0) 20 3393 6954

Email: ir@dppoland.com

 

Singer Capital Markets (Nominated Adviser and Broker)

Shaun Dobson / Jen Boorer / Oliver Platts

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 111 stores and
restaurants throughout cities and towns in Poland and Croatia.

 

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