TIDMDPEU
RNS Number : 1306F
DP Eurasia N.V
14 July 2021
For Immediate Release 14 July 2021
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Trading Update for the six months ended 30 June 2021
Strong momentum achieved with unprecedented demand in Turkey
For the period ended
30 June
-------------------------------
2021 2020 Change
---------------- ------------- ---------
(in millions of TRY,
unless otherwise indicated)
Number of stores 789 754 35
Group system sales (1)
Turkey 754.4 438.9 71.9%
Russia 278.6 212.7 31.0%
Azerbaijan & Georgia 19.3 13.1 47.0%
Total 1,052.2 664.7 58.3%
Group system sales like-for-like
growth(2)
Group(5) 53.5% 6.0%
Turkey 65.0% 13.5%
Russia (based on RUB) 18.2% -20.1%
Highlights
-- Group system sales increased 58.3%, on the back of
unprecedented demand in Turkey and against very weak comparables
for H1 2020 in both Turkey and Russia due to the pandemic
o Turkish systems sales growth of 71.9%
o Russian system sales growth of 31.0% (15.5% based on RUB)
-- Group online system sales(4) growth of 77.2%
o Turkish online system sales growth of 106.7%
o Russian online system sales growth of 33.2% (17.5% based on
RUB)
-- Online delivery system sales(3) as a share of delivery system
sales at 77.5% (June 2020: 75.1%) reflects our continued strong
online offering and positioning
-- Strong liquidity position - TRY 110 million of cash at hand
and additional available bank lines of TRY 186 million as at 30
June 2021
Commenting on the update, Chief Executive Officer, Aslan Saranga
said:
"Trading performance across the Group has continued its strong
momentum throughout the first half of the year, as highlighted in
our last trading update in May. Our Turkish operations have seen
unprecedented demand during H1 2021 with a May/June like-for-like
growth rate of 70.3%, driven mainly by delivery and, also,
tailwinds from a temporary reduction in the VAT rate to 1% from 8%
which was extended until the end of July. We have noted in our
previous releases a Covid inspired shift to home delivery, whilst
the current numbers are encouraging, it is still too early to
regard the shift being a permanent change in demand. Covid
vaccinations have been increasing at a steady pace in Turkey as a
result of which virtually all restrictions including those on
dine-in and curfews, have been lifted at the beginning of July.
"In our Russian operations we have continued to see an improving
trend with a May/June like-for-like growth rate of 32.4%. However,
Russian vaccination rates continue to remain relatively low and
authorities in Greater Moscow instituted a ban on dine-in towards
the end of June. There are also vaccination targets instituted for
restaurants and their staff that need to be achieved by the middle
of July and August for the restaurants to remain open for take-away
and delivery.
"Our online channels continue to be the main driver behind our
like-for-like growth rates. Online system sales as a percent of
delivery system sales have reached 74.0% and 92.3% in Turkey and
Russia, respectively, allowing the Group to reach 77.5% on a
consolidated basis.
"The increasing franchisee demand since the middle of last year
has resulted in 16 store openings in Turkey since the beginning of
the year with a very strong pipeline for the second half of 2021.
In Russia, we have also added two stores in the first half.
"The Group is emerging from the pandemic with strong momentum.
Whilst the Board is conscious of the potential continued risks
posed by the pandemic, we remain on target for our 2021 guidance in
our markets and the Board expects the full year adjusted EBITDA(6)
for 2021 to be in line with expectations."
Enquiries
DP Eurasia N.V.
Selim Kender, Chief Strategy Officer &
Head of Investor Relations +90 212 280 9636
Buchanan (Financial Communications)
Richard Oldworth / Vicky Hayns / Tilly +44 20 7466 5000
Abraham dp@buchanan.uk.com
A conference call for investors and analysts will be held at
9.00am this morning, which will be accessible using the following
details:
Conference call: UK Toll Free: 0800 358 9473
UK Toll: +44 333 300 0804
Participant PIN code: 32010248#
URL for international dial in numbers:
https://event.sharefile.com/share/view/s84220495bb4b47b2abfff950788bcd35
A recording of the conference call will subsequently be
available at www.dpeurasia.com .
Notes to Editors
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 789 stores (584 in Turkey, 192 in Russia,
nine in Azerbaijan and four in Georgia as at 30 June 2021), and
operates through its owned corporate stores (28%) and franchised
stores (72%). 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. The Group has adapted the Domino's Pizza globally
proven business model to its local markets.
Performance Review
Store count As at 30 June
--------------------------------------------------------
2021 2020
Corporate Franchised Total Corporate Franchised Total
Turkey 103 481 584 121 421 542
Russia 115 77 192 120 79 199
Azerbaijan - 9 9 - 9 9
Georgia - 4 4 - 4 4
Total 218 571 789 241 513 754
Delivery channel mix and online like-for-like growth
The following table shows the Group's delivery system sales (3)
, broken down by ordering channel and by the Group's two largest
countries in which it operates, as a percentage of delivery system
sales for the periods ended 30 June 2021 and 2020:
For the period ended 30 June
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
25.6 7.7 22.2
Store % % % 28.3% 10.9% 23.5%
Group's online 25.9 69.5 36.5
Online platform % % % 25.1% 73.9% 41.5%
48.1 22.9 41.0
Aggregator % % % 44.4% 15.2% 33.6%
74.0 92.3 77.5
Total online % % % 69.5% 89.1% 75.1%
0.4 0.3
Call centre % - % 2.3% - 1.4%
Total 100% 100% 100% 100% 100% 100%
The following table shows the Group's online like-for-like
growth (2) , broken down by the Group's two largest countries in
which it operates, for the periods ended 30 June 2021 and 2020:
For the period ended
30 June
-------------------------------
2021 2020
--------------------- --------
Group online system sales like-for-like
growth(2)
Group(5) 73.6 % 32.3%
Turkey 91.2 % 38.6%
Russia (based on RUB) 19.2 % 8.9%
Liquidity
The Group continues to have a strong liquidity position, having
access to cash at hand and additional borrowing capacity available
from its Turkish banks. As at 30 June 2021, the Group had TRY 110
million of cash at hand and additional available bank lines of TRY
186 million.
The Group's strong liquidity position enables it to prepay its
bank borrowings in Russia if required, and still maintain a strong
liquidity position. The Group obtained a waiver from Sberbank with
respect to its covenants for the first three quarters of 2021 and
is in negotiations to reset the covenants or repay the remaining
loan. The principal outstanding under the Sberbank loan currently
amounts to RUB 0.9 billion, of which RUB 0.2 billion is supported
by a cash collateral deposit.
Additional disclosure for the period from 1 March 2021 to 31
March 2021
Jubilant Foodworks Limited, a significant shareholder in DPEU
holding approximately 32.81% of the Company's ordinary share
capital, has certain regulatory disclosure requirements with regard
to its investment in DPEU. In connection with this, going forward
DPEU will disclose on a quarterly basis profit after tax and other
comprehensive income.
For the period from 1 March 2021 to 31 March 2021, DPEU recorded
unaudited profit after tax of TRY 27.7 million and unaudited other
comprehensive expense of TRY 8.6 million.
Notes
(1) System sales are sales generated by the Group's corporate
and franchised stores to external customers and do not represent
revenue of the Group.
(2) Like-for-like growth is a comparison of sales between two
periods that compares system sales of existing system stores. The
Group's system stores that are included in like-for-like system
sales comparisons are those the Group considers to be mature
operations. The Group considers mature stores to be those stores
that have operated for at least 52 weeks preceding the beginning of
the first month of the period used in the like-for-like comparisons
for a certain reporting period, assuming the relevant system store
has not subsequently closed or been "split" (which involves the
Group opening an additional store within the same map of an
existing store or in an overlapping area).
(3) Delivery system sales are system sales of the Group
generated through the Group's delivery distribution channel.
(4) Online system sales are system sales of the Group generated
through its online ordering channel.
(5) Group like-for-like growth is a weighted average of the
country like-for-like growths based on store numbers as described
in Note (2).
(6) EBITDA, adjusted EBITDA and non-recurring and non-trade
income/expenses are not defined by IFRS. These items are determined
by the principles defined by the Group management and comprise
income/expenses which are assumed by the Group management to not be
part of the normal course of business and are non-trading items.
These items which are not defined by IFRS are disclosed by the
Group management separately for a better understanding and
measurement of the sustainable performance of the Group.
Appendices
Exchange Rates
For the period ended 30 June
----------------------------------------------------------
2021 2020
---------------------------- ----------------------------
Currency Period End Period Average Period End Period Average
----------- --------------- ----------- ---------------
EUR/TRY 10.365 9.485 7.708 7.132
RUB/TRY 0.119 0.105 0.097 0.093
EUR/RUB 86.203 89.547 78.678 77.961
Delivery - Take away / Eat in mix
For the period ended 30 June
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
83.2 77.2 81.4
Delivery % % % 70.0% 77.4% 72.4%
Take away / Eat 16.8 22.8 18.6
in % % % 30.0% 22.6% 27.6%
Total(2) 100% 100% 100% 100% 100% 100%
Forward looking statements
This press release includes forward-looking statements which
involve known and unknown risks and uncertainties, many of which
are beyond the Group's control and all of which are based on the
Directors' current beliefs and expectations about future events.
They appear in a number of places throughout this press release and
include all matters that are not historical facts and include
predictions, statements regarding the intentions, beliefs or
current expectations of the Directors or the Group concerning,
among other things, the results of operations, financial condition,
prospects, growth and strategies of the Group and the industry in
which it operates.
No assurance can be given that such future results will be
achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements.
Forward-looking statements contained in this press release speak
only as of the date of this press release. The Company and the
Directors expressly disclaim any obligation or undertaking to
update these forward-looking statements contained in this press
release to reflect any change in their expectations or any change
in events, conditions, or circumstances on which such statements
are based.
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END
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