Pizza firm DP Eurasia delivers Jan.-Oct. sales jump as prices rise (updated)
23/11/2022 07:50
(Adds details of Russia operations, new products)
Nov 23 (Reuters) - DP Eurasia DPEU.L , which runs the
Domino's Pizza brand in Turkey and Russia, said on Wednesday its
sales jumped 74.6% in the first 10 months of the year, helped by
higher prices and new product launches.
Its system sales, which includes sales from its own and
franchised stores, rose to 3.32 billion Turkish lira ($178.27
million), up 11.6% adjusted for hyperinflation in its largest
market, Turkey.
DP Eurasia is grappling with an annual inflation rate of
85.5% in Turkey and uncertainty over operating in Russia after
Moscow's invasion of Ukraine.
While many Western companies, including McDonald's MCD.N
and Pizza Hut YUM.N , exited Russia, DP Eurasia said in April
it planned to stay, but it would limit investment.
"In Russia, we continue to operate in a difficult
geo-political and economic environment. As a result, our
like-for-like performance by the end of October was negative,"
chief executive Aslan Saranga said in a statement.
The London-listed company said it would keep optimising its
store count in Russia. It had 171 stores in the country at the
end of October, compared to 192 a year earlier.
DP said its new $1 pizza, Pizzetta, was "very successful",
and it would launch a new "snacks from the oven" take-away range
to add to its value-for-money product offering.
The company said it continued to trade in line with its
guidance, but franchisee demand was likely to drive openings of
its new coffee shop chain this year "slightly above" the
targeted 30 stores.
($1 = 18.6235 liras)
(Reporting by Anna Pruchnicka; editing by Jason Neely and Jamie
Freed)
((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))