REG - DP Poland PLC - Trading Update

DP PolandAnnouncement

30/05/2023 12:15

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RNS Number : 0409B  DP Poland PLC  30 May 2023

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")

 

Trading Update

 

 

DP Poland, the operator of pizza stores and restaurants across Poland and
Croatia, announces a trading update for 2023 to the end of April.

 

Trading Update YTD April 2023

 

Poland

  PLNm                  YTD       YTD       % change vs. 2022

Apr2022
Apr2023
 Total System Sales(1)  61.6      70.8      14.9%

 LFL System Sales(2)    58.7      69.5      18.4%
 dine-in                7.6       8.7       15.2%
 carry-out              8.9       14.0      56.9%
 delivery               42.1      46.8      11.2%

( )

(1   )System Sales - total retail sales including sales from corporate and
sub-franchised stores. unaudited

(2   )Like-for-like System Sales growth in Polish Złoty, matching trading
periods for the same stores between 1 January and 30 April 2022 and 1 January
and 30 April 2023

 

Current trading remains strong, with double digit sales growth continuing and
higher order counts. LFL Sales increased by 18.4% year to date in 2023 vs.
corresponding period in 2022, with the growth split between sales channels.
LFL Sales in April 2023 were up by 16.6% vs April 2022.

 

Inflationary costs have begun to show a positive downward trend which should
support profitability in coming quarters. Energy costs are beginning to abate
and food costs began to drop in May 2023, however, labour inflationary
pressures have remained.

 

Croatia

 (EURm)                 YTD       YTD       % change vs. 2022

Apr2022
Apr2023
 Total System Sales(1)  0.44      0.66      52.7%(3)
 LFL System Sales(2)    0.43      0.50      15.7%

( )

(1   )System Sales - total retail sales including sales from corporate and
sub-franchised stores. unaudited

(2   )Like-for-like System Sales growth in Euro, matching trading periods
for the same stores between 1 January and 30 April 2022 and 1 January and 30
April 2023

(3) Difference between Total System Sales growth and LFL system sales growth
driven by 3(rd) store opening in June 2022

 

Currency exchange from Kuna to Euro at the beginning of 2023 contributed to
weak January sales and order count. However, since February, Croatia has seen
strong double digit LFL Sales growth. April YTD LFL Sales increased by 15.7%
vs. corresponding periods, in line with April 2023 LFL Sales, up by 15.6% vs
April 2022.

 

At the start of 2023, the Croatian business began utilising the benefits of
group purchasing, which should visibly reduce direct costs in the medium-term.
In June 2023, the 4(th) store in Croatia is expected to open in Zagreb.

 

Final Results for the year ended 2022

 

The Group expects to announce its final results for the year ended 31 December
2022 in the second half of June, which will include a webinar for investors.

 

Pre-Final 2022 year end results

 

As the Group is at the end of the financial audit for the year 2022, based on
pre-final 2022 results it is expected that:

 

·   Group Revenue will be between £35.6 - 35.9m

·   Group Post-IFRS16 EBITDA will be between £1.6 - 1.8m

·   Group Pre-IFRS16 EBITDA will be between £(1.3) - (1.5)m

 

EBITDA is slightly lower than previous expectations due to settlement of
higher utilities costs for the year as well as accrual cost adjustments.

 

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

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

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