TIDMDPEU
RNS Number : 9434T
DP Eurasia N.V
30 November 2021
For Immediate Release 30 November 2021
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Trading Update for the Ten Months Ended 31 October 2021
Continued strong momentum drives store network expansion
For the period ended
31 October
-------------------------------
2021 2020 Change
--------------- -------------- ---------
(in millions of TRY,
unless otherwise indicated)
Number of stores 800 748 52
Group system sales (1)
Turkey 1,383.1 853.1 62.1%
Russia 478.0 372.7 28.2%
Azerbaijan & Georgia 34.5 23.1 49.3%
Total 1,895.5 1,248.9 51.8%
Group system sales like-for-like
growth(2)
Group(5) 42.9% 14.6%
Turkey 52.7% 23.2%
Russia (based on RUB) 12.4% -15.2%
Highlights
-- Group system sales increased 51.8%, on the back of very
strong demand in Turkey and against weak comparables for H1 2020 in
both Turkey and Russia due to the pandemic
o Turkish systems sales growth of 62.1%
o Russian system sales growth of 28.2% (10.2% based on RUB)
-- Group online system sales(4) growth of 67.8%
o Turkish online system sales growth of 89.0%
o Russian online system sales growth of 31.9% (13.4% based on
RUB)
-- Online delivery system sales(3) as a share of delivery system
sales at 78.6% (October 2020: 75.2%) reflects our strong online
offering and positioning
-- Strong liquidity position - TRY 121 million of cash at hand
and additional available bank lines of TRY 207 million as at 31
October 2021
-- 800(th) store opened, 52 net store openings year-on-year
-- Jubilant Foodworks Limited, through its wholly-owned
subsidiary Jubilant Foodworks Netherlands B.V., increased its
shareholding to 39.8% via a reverse bookbuild process
Commenting on the update, Chief Executive Officer, Aslan Saranga
said:
"Trading performance across the Group has continued its strong
momentum since our Interim Results in September. Our Turkish and
Russian operations' system sales have increased by 62.1% and 10.2%,
respectively, in local currency terms. This has been driven mainly
by delivery sales and reflects a continuation of the Covid-19
inspired shift to home delivery, as previously noted, however
whilst the current numbers are encouraging, it is still too early
to measure how permanent this trend will be. In Turkey, the
temporary reduction in the VAT rate came to an end in October, and
the operational restrictions lifted in July remain so. In Russia,
we have experienced some restrictions on dine-in from time to time.
Our like-for-like growth rate compared to pre-Covid-19 (2019)
period reached 87.1% in Turkey; a strong performance which
significantly outpaced inflation of 34.1% over the same period. Our
Russian like-for-like growth rate over the same period was -5.8%;
however, recent Russian figures continue to be encouraging and we
were pleased to report a positive like-for-like growth rate
compared to 2019 in September and October.
"Increased store demand is continuing in Turkey and we have
reached the milestone of 800 stores across the Group. We have
opened 27 stores in 2021 to date and are continuing to build a
solid pipeline for 2022.
"Digital continues to be the main driver of the business as our
channel mix has tilted more towards delivery due to the pandemic,
reflecting broader shifts toward online consumerism. Online
ordering as a percentage of delivery reached 78.6 % for the period,
an increase of 3.4 percentage points over the last twelve
months.
"Covid-19 continues to be a dominant factor in both our markets,
however encouragingly the percentage of fully vaccinated citizens
continues to rise in Turkey and Russia to 59.2% and 38.4%,
respectively(6) .
"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(7)
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 / Victoria Hayns / Tilly +44 20 7466 5000
Abraham / Verity Parker 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 UK Toll Free: 08003589473
call: UK Toll: 03333000804
Participant PIN code: 70190931#
URL for international dial in numbers:
https://events-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf
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 800 stores (595 in Turkey, 192 in Russia,
nine in Azerbaijan and four in Georgia as at 31 October 2021), and
operates through its owned corporate stores (27%) and franchised
stores (73%). 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 31 October
--------------------------------------------------------
2021 2020
Corporate Franchised Total Corporate Franchised Total
Turkey 104 491 595 110 435 545
Russia 115 77 192 116 74 190
Azerbaijan - 9 9 - 9 9
Georgia - 4 4 - 4 4
Total 219 581 800 226 522 748
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 31 October 2021 and 2020:
For the period ended 31 October
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
24.1 7.3 21.1 28.3 10.6 23.8
Store % % % % % %
Group's online 25.4 68.7 35.8 25.8 71.9 40.1
Online platform % % % % % %
50.1 24.0 42.8 44.4 17.5 35.1
Aggregator % % % % % %
75.5 92.7 78.6 70.2 89.4 75.2
Total online % % % % % %
0.4 0.3 1.5 1.0
Call centre % - % % - %
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 31 October 2021 and
2020:
For the period ended
31 October
--------------------------------
2021 2020
--------------------- ---------
Group online system sales like-for-like
growth(2)
Group(5) 55.8 % 42.4 %
Turkey 68.7 % 51.2 %
Russia (based on RUB) 15.0 % 12.3 %
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 31 October 2021, the Group had TRY
121 million of cash at hand and additional available bank lines of
TRY 207 million.
The Group's strong liquidity position enables it to prepay its
bank borrowings in Russia, despite the recent devaluation of TRY,
if required, and still maintain a strong liquidity position. The
Group obtained a waiver from Sberbank with respect to its covenants
for all four 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.
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) Source: ourworldindata.org as at 27 November 2021.
(7) 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 31 October
----------------------------------------------------------
2021 2020
---------------------------- ----------------------------
Currency Period End Period Average Period End Period Average
----------- --------------- ----------- ---------------
EUR/TRY 10.998 9.771 9.597 7.734
RUB/TRY 0.135 0.111 0.106 0.095
EUR/RUB 82.290 80.001 93.024 80.774
Delivery - Take away / Eat in mix
For the period ended 31 October
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
78.8 77.0 78.2 70.8 77.0 72.6
Delivery % % % % % %
Take away / Eat 21.2 23.0 21.8 29.2 23.0 27.4
in % % % % % %
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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