REG - DP Poland PLC - Trading Update

DP PolandAnnouncement

16/04/2025 07:00

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RNS Number : 1841F  DP Poland PLC  16 April 2025

DP Poland PLC

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

 

Trading Update Q1 2025

 

Appointment of Nominated Adviser, Financial Adviser and Sole Broker

 

DP Poland, the operator of Domino's pizza stores and restaurants across Poland
and Croatia, is pleased to announce a trading update for Q1 2025.

 

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

 

"Our strategic goal to become Poland's leading pizza brand remains firmly on
track, underpinned by a capital-light, franchise-led model. The integration of
Pizzeria 105, alongside the sale of corporate stores, reflects our sharpened
focus on franchising and marks an important step in building a more resilient,
scalable business. As we pivot from pure volume growth to value creation, our
priority is enhancing franchisee profitability and strengthening margins.
Despite a challenging macroeconomic backdrop, our Q1 performance was
encouraging and reinforces our confidence in the strategy."

 

Strategic and Operational Highlights

 

The Group continues to make strong progress in executing its long-term growth
strategy, with a clear focus on becoming the leading pizza brand in Poland.

 

Following three consecutive years of high pace like-for-like sales growth, the
business has reached a level of maturity that enables it to transition to the
next phase of development. This will focus on acquisition opportunities,
driving organic expansion and accelerating the franchising of corporate owned
stores.

 

The acquisition of Pizzeria 105, which completed in Q1, marks a significant
milestone in this journey. The transaction not only strengthens DP Poland's
footprint but also fast tracks our sub franchising strategy bringing 76
experienced franchisees into the Group, creates opportunities for growth and
expansion and accelerates the shift toward a more scalable, capital-light
franchise-led model.

 

Alongside this, DP Poland continues to advance its corporate store sell-down
programme. Three additional Domino's corporate stores were franchised in Q1 to
three new franchisee partners, in line with our strategic objective to reduce
overheads, improve cash conversion, and create a more stable, recurring
earnings profile.

 

The Group opened four new corporate stores during Q1 and completed the
renovation of two existing locations, further enhancing brand presence and
expanding access to new customers. As part of our ongoing network optimisation
strategy, we closed two underperforming sites, strengthening the overall
quality and resilience of our store portfolio.

 

Trading Update Q1 2025

 

Poland

 PLNm                    Q1 2025
                         PLNm                          % YoY change
 Total System sales(1)             66.3                6.5%
 LFL System sales(2)               60.1                2.9%
 non-delivery                      17.0                -2.0%
 delivery                          43.1                4.8%

 M Orders                Q1 2025
                         M Orders                      % YoY change
 Total System orders(1)               1.1              -0.1%
 LFL System orders(2)                 1.0              -4.5%

 

(1   )System Sales and System orders - total retail sales or orders
including sales or orders from corporate and sub-franchised stores - only
Domino's stores without Pizzeria 105 stores.

(2  )Like-for-like System sales and System orders is reported in Polish
Złoty and reflects performance over comparable trading periods for the same
stores.

 

Trading in Poland remained stable in Q1 2025. System sales rose by 6.5%,
year-on-year to PLN 66.3m, with like-for-like (LFL) sales up 2.9%. Growth was
primarily driven by higher average ticket values, reflecting a strategic shift
in pricing. This approach helps offset cost pressures, notably in labour,
while order volumes were flat to maintain healthy margins.

 

Croatia

 EURm                    Q1 2025
                         EURm                  % YoY change
 Total System sales(1)            1.0          12.7%
 LFL System sales(2)              1.0          12.7%

 UnitsM                  Q1 2025
                         UnitsM                % YoY change
 Total System orders(1)           0.1          1.1%
 LFL System orders(2)             0.1          1.1%

 

(1   )System Sales and System orders - total retail sales or orders
including sales or orders from corporate stores.

(2   )Like-for-like System Sales and System orders is reported in Euros,
matching trading periods for the same stores or orders growth in units,
matching trading periods for the same stores

 

Our operations in Croatia delivered a strong performance, with total and
like-for-like system sales both growing 12.7% YoY. Despite implementing
pricing adjustments to offset rising labour costs, sales remained strong. The
brand continues to gain momentum in the market, with two new stores scheduled
to open in the coming months.

 

Outlook

 

The acquisition of Pizzeria 105 represented a strategic step to accelerate our
growth, increase our store footprint, and expand our base of franchisee
partners. We are encouraged by the progress to date and excited about the
transformational impact this acquisition is expected to have on the business.
The Group expects to announce its final results for the year ended 31 December
2024 in mid-May and will include an investor webinar and roadshow, along with
an update on the Pizzeria 105 integration. Management reiterates its market
guidance for pre-IFRS 16 EBITDA of £1.2 million for the year ended 31
December 2024.

 

Appointment of Nominated Adviser, Financial Adviser and Sole Broker

 

DP Poland is pleased to announce the appointment of Panmure Liberum Limited as
the Company's Nominated Adviser, Financial Adviser and Sole Broker, with
immediate effect.

 

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.

 

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

 

Panmure Liberum Limited  (Nominated Adviser, Financial Adviser and Broker)

Will Goode / Ailsa Macmaster Tel: +44 (0) 20 3100 2000

 

Notes for editors

 

About DP Poland plc

 

DP Poland holds the exclusive rights to develop, operate, and sub-franchise
Domino's Pizza stores across Poland and Croatia. The group currently manages
120 Domino's locations in cities and towns throughout both countries. In
addition to operating 90 Pizzeria 105 outlets across Poland.

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