REG - DP Eurasia N.V - Update on Russian Business

DP Eurasia NVAnnouncement

21/08/2023 07:00

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RNS Number : 8476J  DP Eurasia N.V  21 August 2023

 

DP Eurasia N.V.

("DP Eurasia" or the "Company", and together with its subsidiaries, the
"Group")

Update on Russian business and operations

DP Eurasia (DPEU.L), the master franchisee of the Domino's Pizza brand in
Turkey, Russia, Azerbaijan and Georgia, today provides an update on its
Russian business and operations (represented by the operations of its indirect
subsidiary, Pizza Restaurants LLC ("DPRussia")).

The Company today announces the initiation of steps by DPRussia's immediate
holding company to file for DPRussia's bankruptcy. This is preceded by the
announcement on 28 December 2022, which confirmed that the Company was
evaluating its presence in Russia, the impact of sanctions and its continuing
ability to serve its customers in Russia. In this connection, the Russian
segment was classified as discontinued operations within the Company's audited
financial statements for the year ended 31 December 2022.

With the increasingly challenging environment, DPRussia's immediate holding
company is now compelled to take this step, which will bring about the
termination of the attempted sale process of DPRussia as a going concern and,
inevitably, the Group's presence in Russia. A bankruptcy petition of DPRussia
will be filed in accordance with the relevant statutory requirements in due
course.

It is too early to have an exact estimate of the financial impact of a
potential insolvency of DPRussia on the consolidated financial position and
results of the Company. The Company can confirm that the external debt of the
Russian segment is an amount of c.RUB 520 million, which was guaranteed by,
inter alia, the Group's Turkish subsidiary, has been fully and finally settled
by the Turkish subsidiary out of existing cash resources, with the Group's
gross debt reducing accordingly and a resulting gross cash balance of TRY 162
million (based on the actual but unaudited cash position as at 18 August
2023).

Further updates will be provided as appropriate and in due course as matters
progress.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018, as amended, and as it
may be modified from time to time by or under domestic law including, but not
limited to, by the Market Abuse (Amendment) (EU Exit) Regulations 2019 (SI
2019/310) ("MAR"), and is disclosed in accordance with the Company's
obligations under Article 17 of MAR.

 

 

 

Enquiries

 DP Eurasia N.V.
 İlknur Kocaer, CFA - Investor Relations Director   +90 212 280 9636

 Buchanan (Financial Communications)
 Richard Oldworth / Toto Berger / Verity Parker     +44 20 7466 5000

                                                    dp@buchanan.uk.com (mailto:dp@buchanan.uk.com)

 

 

DP Eurasia N.V. is the exclusive master franchisee of the Domino's Pizza brand
in Turkey, Russia, Azerbaijan, and Georgia. The Company was admitted to the
premium listing segment of the Official List of the Financial Conduct
Authority and to trading on the main market for listed securities of the
London Stock Exchange plc on 3 July 2017. The Company (together with its
subsidiaries, the "Group") is the largest pizza delivery company in Turkey and
the third largest in Russia. The Group offers pizza delivery and takeaway/
eat-in facilities at its 833 stores (675 in Turkey, 142 in Russia, 10 in
Azerbaijan and 6 in Georgia) as of 30 June 2023 and operates through its owned
corporate stores (10%) and franchised stores (90%). In addition to its pizza
delivery business, the Group also has its own coffee brand, COFFY, which
trades from 51 stores at period-end, 38 of which are franchised. The Group
maintains a strategic balance between corporate and franchised stores,
establishing networks of corporate stores in its most densely populated areas
to provide a development platform upon which to promote best practice and
maximise profitability.

 

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