TIDMDPEU
RNS Number : 6143Z
DP Eurasia N.V
26 January 2022
For Immediate Release 26 January 2022
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Trading Update for the Year Ended 31 December 2021
Strong sales performance sustained
For the year ended 31
December
---------------------------------
2021 2020 Change
------------ ------------------- ---------
(in millions of TRY,
unless otherwise indicated)
Number of stores 809 771 38
Group system sales (1)
Turkey 1,704.2 1,069.1 59.4%
Russia 629.4 471.6 33.5%
Azerbaijan & Georgia 45.3 29.2 55.3%
Total 2,378.9 1,569.9 51.5%
Group system sales like-for-like
growth(2)
Group(5) 40.6% 17.4%
Turkey 50.4% 26.0%
Russia (based on RUB) 9.6% -12.6%
Highlights
-- Group system sales increased 51.5%, on the back of sustained
strong demand in Turkey and improving performance in Russia
o Turkish systems sales growth of 59.4%
o Russian system sales growth of 33.5% (7.8% based on RUB)
-- Group online system sales(4) growth of 66.9%
o Turkish online system sales growth of 84.2%
o Russian online system sales growth of 37.6% (11.0% based on
RUB)
-- Online delivery system sales(3) as a share of delivery system
sales reached 80% (2020: 75%), reflecting DP Eurasia's continued
strong online offering and positioning
-- Strong liquidity position - TRY 198.6 million of cash on hand
and additional available bank lines of TRY 186.0 million as at 31
December 2021
-- 38 net store openings in 2021, supporting the strong franchisee appetite in Turkey
-- Jubilant Foodworks Limited, through its wholly-owned
subsidiary Jubilant Foodworks Netherlands B.V., increased its
shareholding to 40.3% via a reverse bookbuild process and open
market purchases
Commenting on the update, Chief Executive Officer, Aslan Saranga
said:
"Since our last update in November, I am pleased to report a
continued strong trading performance. Group system sales have
increased across all regions with our Turkish and Russian
operations' system sales growing by 59.4% and 7.8%, respectively,
in local currency terms compared to 2020. Our Turkish like-for-like
growth rate compared to the pre-COVID-19 (2019) period reached
88.8%, significantly outpacing inflation of 55.9% over the same
period. Our Russian like-for-like growth rate compared to 2019 was
-4.4%; however, we saw an improvement in the last four months of
the year, where we achieved a positive like-for-like growth rate
compared to the same period in 2019.
"The strong trading has resulted in our best year in terms of
store openings in Turkey since our IPO, where we increased our
Turkish store count by 39. In Russia, our store numbers decreased
by two as we focused on optimizing store coverage areas.
"We are continuing to drive our product innovation strategy,
during the fourth quarter we introduced Ocakba ı pizza in Turkey (a
traditional Turkish cooking method for grilling meat and
vegetables) and half-and-half pizza in Russia, where customers can
choose different toppings for either half of a pizza.
"In 2021, we continued improving the share of digital in our
delivery system sales in both Turkey and Russia, as well as at the
Group level. Our Turkish and Russian operations have reached 76.5%
and 92.9%, respectively, in digital delivery sales as a percentage
of total delivery sales, signifying improvements of 6.2 and 3.2
percentage points from 2020, respectively. At the Group level 80%
of our delivery system sales originated from digital channels.
"Since December, there has been an increase in daily new
COVID-19 cases, with Omicron becoming the dominant variant;
however, we are not subject to any material operational constraints
at this point in any of our trading regions. Vaccination rates are
continuing to increase, especially with a marked improvement in
Russia.
"We saw increasing inflation in Turkey at the end of 2021, and
while this will remain a headwind during 2022, other macro factors,
such as GDP growth and foreign trade, remain strong.
"Whilst the Board is conscious of the potential continued risks
posed by the pandemic, these trading results give us confidence in
the prospects of our business 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 / 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 call: UK Toll Free: 08003589473
UK Toll: 03333000804
Participant PIN code: 43139676#
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 809 stores (607 in Turkey, 188 in Russia,
ten in Azerbaijan and four in Georgia as at 31 December 2021), and
operates through its owned corporate stores (24%) and franchised
stores (76%). 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 December
------------------------------------------------------------------------------
2021 2020
Corporate Franchised Total Corporate Franchised Total
Turkey 100 507 607 106 462 568
Russia 94 94 188 115 75 190
Azerbaijan - 10 10 - 9 9
Georgia - 4 4 - 4 4
Total 194 615 809 221 550 771
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 December 2021 and 2020:
For the year ended 31 December
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
Store 23.1% 7.1% 20.1% 28.5% 10.3% 23.9%
Group's online
Online platform 25.1% 69.1% 36.3% 25.9% 71.4% 40.0%
Aggregator 51.4% 23.8% 43.2% 44.3% 18.3% 35.3%
Total online 76.5% 92.9% 79.6% 70.2% 89.7% 75.3%
Call centre 0.4% - 0.3% 1.3% - 0.9%
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 December 2021 and
2020:
For the year ended 31
December
------------------------
2021 2020
----------- -----------
Group online system sales like-for-like
growth(2)
Group(5) 48.8% 45.2%
Turkey 60.3% 54.4%
Russia (based on RUB) 12.4% 13.1%
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 December 2021, the Group had TRY
198.6 million of cash on hand and additional available bank lines
of TRY 186.0 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 the first quarter of 2022 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 30
September 2021
As previously noted, Jubilant Foodworks Limited, a significant
shareholder in DPEU holding approximately 40.3% of the Company's
ordinary share capital, has certain regulatory disclosure
requirements regarding its investment in DPEU.
For the period from 1 March 2021 to 30 September 2021, DPEU
recorded unaudited profit after tax of TRY 20.8 million and
unaudited other comprehensive expense of TRY 33.0 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 year ended 31 December
----------------------------------------------------------
2021 2020
---------------------------- ----------------------------
Currency Period End Period Average Period End Period Average
----------- --------------- ----------- ---------------
EUR/TRY 14.682 10.423 9.008 8.014
RUB/TRY 0.173 0.119 0.098 0.096
EUR/RUB 84.070 87.188 90.682 82.408
GBP/TRY 17.453 12.116 9.944 8.983
Delivery - Take away / Eat in mix
For the year ended 31 December
--------------------------------------------------
2021 2020
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
Delivery 78.5% 77.8% 78.2% 72.5% 77.7% 74.0%
Take away / Eat
in 21.5% 22.2% 21.8% 27.5% 22.3% 26.0%
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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