Polish food retailer Dino's full-year net profit rises 7.2% y/y
28/02/2025 07:05
GDANSK, Feb 28 (Reuters) - Polish food retail chain Dino DNP.WA late on Thursday reported a preliminary full-year net profit of 1.51 billion zlotys ($376.48 million), up 7.2% year-on-year, as higher revenues offset rising operating costs and low consumer confidence. The result was slightly above analysts' expectations of 1.48 billion zlotys. WHY IT’S IMPORTANT Dino Polska is one of the biggest supermarket chains in Poland, playing a major role in the country's retail sector. Although consumer confidence has been gradually returning in central Europe as an inflation shock related to the war in Ukraine and the COVID-19 pandemic fades, many people in Poland remain cautious about spending. BY THE NUMBERS According to preliminary figures, Dino's revenue increased by 14% year-on-year to 29.3 billion zlotys, while earnings before interest, depreciation, and taxes (EBITDA) came in at 2.32 billion zlotys. In the fourth quarter, the company's network opened 116 new stores, signifying a 75.8% growth compared to the same period last year. By end of 2024, Dino had 2,688 stores in Poland. The company's like for like (LFL) sales grew 5.3% in 2024, down from 17.2% last year. As of February, Dino has reached a market capitalisation of 47.25 billion zlotys, putting it ahead of other retail food chains such as Zabka ZAB.WA (22.60 billion zlotys) and Eurocash EUR.WA (1.31 billion zlotys). OUTLOOK Dino expects 2025 store count to exceed 2024 in a high teens percentage range. Capital expenditures for 2025 are expected to reach about 1.7-1.8 billion zlotys, the company said. The retailer's goal for the year is to bring the EBITDA margin back onto the path of gradual growth, following the dip to 7.9% in 2024 from 8.7% in reported in 2023. It also expects a high single-digit rate growth in LFL sales. ($1 = 4.0108 zlotys) (Reporting by Julia Kotowska and Rafal W. Nowak; Editing by Varun H K) ((julia.kotowska@thomsonreuters.com))