REG - DP Poland PLC - Trading Update

DP PolandAnnouncement

04/11/2024 07:00

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RNS Number : 6928K  DP Poland PLC  04 November 2024

 

DP Poland PLC

("DP Poland", the "Company" or the "Group")

 

Q3 2024 Trading Update

 

 

DP Poland, the operator of Domino's pizza stores and restaurants across Poland
and Croatia, announces a trading update for the nine months to 30 September
2024.

 

DP Poland's Chief Executive Officer, Nils Gornall, said:

 

" I am delighted to report that DP Poland continues to experience exceptional
growth across both Poland and Croatia. In Poland, our system sales have
increased by 19% year-to-date, and orders are up 15%, showcasing our expanding
customer base and the outstanding performance of our stores.

 

We're fully committed to our strategy of delivering quality pizza quickly and
providing great value to our customers. By opening 12 new locations this year
and transitioning to a sub-franchised business model, we're rapidly gaining
market share and setting the stage for even greater success.

 

Overall, we are extremely pleased with the sales growth, organic store roll
out and sub-franchise transition. With an average of over 800 orders per store
each week in Poland, we're excited to carry this momentum in Q4 and beyond."

 

Financial detail

 

 Poland

 PLNm                    Q1 2024                 Q2 2024                 Q3 2024                 YTD SEP 2024
                         PLNm      % YoY change  PLNm      % YoY change  PLNm      % YoY change  PLNm      % YoY change
 Total System sales(1)   62,2      17,3%         68,0      23,7%         63,7      15,8%         193,9     19,0%

 LFL System sales(2)     60,8      17,9%         66,7      26,5%         61,2      21,0%         188,7     21,8%
 non-delivery            19,0      17,7%         21,3      20,3%         20,0      10,4%         60,3      16,0%
 delivery                41,8      18,0%         45,4      29,6%         41,1      26,9%         128,3     24,7%

 M Orders                Q1 2024                 Q2 2024                 Q3 2024                 YTD SEP 2024
                         M Orders  % YoY change  M Orders  % YoY change  M Orders  % YoY change  M Orders  % YoY change
 Total System orders(1)  1,1       14,4%         1,2       20,3%         1,1       10,1%         3,4       15,0%

 LFL System orders(2)    1,1       14,8%         1,2       22,8%         1,1       14,1%         3.4       17,3%

 Croatia
 EURm                    Q1 2024                 Q2 2024                 Q3 2024                 YTD SEP 2024
                         EURm      % YoY change  EURm      % YoY change  EURm      % YoY change  EURm      % YoY change
 Total System sales(1)   0,9       74,1%         0,9       72,7%         0,9       51,0%         2,7       65,4%

 LFL System sales(2)     0,5       8,8%          0,6       9,8%          0,6       4,4%          1,8       7,5%

 

(1   )System Sales and System Orders - total retail sales or orders
including sales or orders from corporate and sub-franchised stores, unaudited

 

(2   )Like-for-like System Sales growth in Polish Złoty or Euro, matching
trading periods for the same stores

 

Financial Highlights

 

·      LFL System Sales in Poland grew by 21.8% YTD (end September
2024), with the Delivery channel continuing to increase its share of our
business, now accounting for two-thirds of System Sales.

·      Order counts grew strongly and most importantly was the main
driver of our revenue growth, with Poland LFL System Orders increasing by
17.3% YTD, and Average Weekly Order Count for Poland continuing to expand, to
over 800 per store YTD.

·      Croatia LFL System Sales grew by 7.5%, maintaining excellent
performance.  System sales grew by 65.4% driven by new store openings.

·      Since April 2024 we have experienced upward pressure on food
costs, particularly dairy products.  Despite this, we have continued to grow
orders and market share without sacrificing store level profitability.

 

Operational Highlights

·      We remain on track to open 16 locations during 2024 with 12 new
sites and 4 stores relocated as we continue to optimise our store network.
 We target to end the year with an estimated 122 store network.

·      Five corporate stores sold to franchisees YTD, as we transition
to a sub-franchised business model.

·      Planned investment in Lodz commissary was completed, adding new
silos and dough making equipment, materially growing production capacity and
preparing the Group for further growth.

 

The Board remains confident in the Group's performance and expects to be in
line with market expectations for 2024.

 

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 / Oliver Platts

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

 

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