Pizza firm DP Eurasia delivers annual profit rise (updated)
12/04/2023 07:38
(Adds details on inflation and 2023 guidance)
April 12 (Reuters) - DP Eurasia DPEU.L , which runs
Domino's Pizza brand in Turkey and Russia, on Wednesday reported
a 5.3% rise in its annual core earnings even as it battled
inflation in its biggest Turkish market.
The company has been hiking prices and introducing new more
affordable products such as Pizzetta, priced at about $1, in
response to Turkey's high inflation.
DP said its adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA), taking into account
hyperinflation in Turkey, reached 311.0 million Turkish lira
($16.1 million) in 2022, compared with 295.5 million lira a year
earlier.
The lira depreciation and surging energy prices pushed
Turkey's annual inflation to a 24-year peak of above 85% in
October. The figure dropped to 50.51% in March.
DP, the largest pizza delivery company in Turkey by store
count, said 12 out of the total 655 Domino's Pizza stores in the
country were not operational after the Feb. 6 earthquake.
But it added the impact of the earthquake on its operations
was not expected to be material to 2023.
DP expects to maintain its organic and like-for-like sales
growth momentum in 2023 driven by network expansion, volume
expansion and targeted price hikes.
After adding 48 stores in Turkey in 2022, it plans to open
35 to 40 stores this year and 50 to 60 outlets of its new coffee
chain COFFY.
The company said it continued to evaluate its presence in
Russia, after starting the process in December last year.
($1 = 19.3025 liras)
(Reporting by Anna Pruchnicka in Gdansk; Editing by Milla
Nissi)
((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))