TIDMDPEU
RNS Number : 1761O
DP Eurasia N.V
30 January 2023
30 January 2023
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Trading Update for the Year Ended 31 December 2022 (1)
(millions of TRY, unless otherwise indicated)
2022 2021 Change
---------------------------------- --------- --------- ------- ---------
Number of stores 859 817 42
---------------------------------- --------- --------- ------- ---------
Change
Group system sales (pre-IAS (after
29(2) ) (3) 2022 2021 Change IAS 29)
Turkey 2,933.4 1,704.2 72.1% -0.7%
Azerbaijan 67.4 32.1 109.8% 22.1%
Georgia 36.5 13.8 165.1% 55.4%
COFFY 53.6 5.8 828.8% 429.5%
Total continuing operations 3,090.9 1,755.9 76.0% 1.5%
Russia (discontinued operations) 1,119.9 629.4 77.9% 77.9%
Grand Total 4,210.8 2,385.3 76.5% 13.1%
---------------------------------- --------- --------- ------- ---------
System sales LfL growth(4) (pre-IAS 29) (after IAS 29)
2022 2021 2022 2021
Turkey 63.5% 50.4% -5.6% 25.9%
Azerbaijan (based on AZN) 8.0% 7.1% 7.9% 5.1%
Georgia (based on GEL) 12.6% 67.2% 12.8% 31.4%
Total continuing operations 62.2% 49.9% -5.3% 26.0%
Russia (discontinued operations,
based on RUB) -9.8% 9.6% -9.8% 9.6%
DPEU Group (5) 46.2% 39.8% -6.3% 21.9%
---------------------------------- ------------ ----------- ----------------- ----------------
Highlights
-- Group system sales increased by 13.1% (pre-IAS 29: 76.5%),
reflecting our ongoing focus on network expansion, strategic
pricing, and product innovation, as well as excellent growth and
demand from our COFFY proposition.
-- Good performance in Turkey was delivered against a strong
prior year comparative (pre-IAS 29: 59.1%) and while operating in a
sustained inflationary environment. Our Turkish LfL performance
caught up with inflation when adjusted for last year's VAT
advantage.
-- Online delivery system sales increased to 82.7% (2021: 77.4%)
as a share of delivery system sales(6) , reflecting our robust
positioning for the online ordering channel.
-- Group online system sales(5) grew by 15.3% (pre-IAS 29: 76.4%).
o Turkish online system sales growth was 1.6% (pre-IAS 29:
75.7%).
o Russian online system sales growth was 77.2% (-15.1% based on
RUB).
-- Turkish net new store openings of 48 for Domino's Pizza,
higher than previously guided range of 30-40 for 2022, reflects
strong demand and maintained network expansion momentum, building
on the record year in 2021. Additionally, the Group opened two new
stores in Georgia, bringing the total number of stores to six in
the country.
-- The COFFY network this year increased by 21 stores to reach
29 with solid ongoing franchisee demand.
-- The Group continues to evaluate its presence in Russia and,
as previously announced is considering various options which may
include a divestment of its Russian operations. Whilst work on a
potential transaction is ongoing, there can be no certainty as to
the outcome. In the meantime, the Group continues to limit
investment in Russia and remains focused on optimising the existing
store coverage. Following the closure of 29 stores over the course
of 2022, the number of Russian stores stood at 159 as of 31
December 2022.
-- Liquidity position as of 31 December 2022: TRY 368 million
cash (TRY 9 million of which relates to the Russian business) and
an undrawn bank facility of TRY 225 million.
-- The Group plans to share formal guidance for the 2023
financial year when it publishes its 2022 preliminary results in
April.
Performance against formal guidance - 2022:
Turkey guidance Actual vs. Russia guidance Actual vs.
guidance guidance
-------------------- --------------- ---------- --------------- ----------
LfL growth rate 55 - 65%* IN LINE 0% (based on WORSE
RUB)
Domino's Pizza
net store openings 30 - 40 BETTER 0 WORSE
COFFY net store
openings 20 - 30 IN LINE - -
* excl. impact of IAS 29 accounting
Commenting on the update, Chief Executive Officer, Aslan Saranga
said:
"Trading momentum sustained into the final months of the year,
as we continued to implement our targeted action plan in reaction
to and in order to overcome macro factors largely outside of our
control. As a result, we anticipate adjusted EBITDA(8) for 2022
will come ahead of current market expectations.
"We have a clear and targeted strategy that has focused on three
areas - strategic pricing & product innovation, continued
digital innovation, and operational efficiencies to generate
sustainable profitability. This approach has enabled us to combat
the high levels of volatility in the regions in which we operate,
and the impact of our efforts is visible in terms of volume
generation and customer acquisition.
"Our focus on product innovation is integral, allowing us to
present a broad choice to customers who increasingly seek value and
affordability amid the inflationary environment. One of our new
products, Pizzetta, which costs circa USD$1, has become very
successful since its launch in Q4 2022. We also introduced a
'snacks from the oven' range, completing our suite of value options
and highlighting our drive for sustained innovation.
"In 2022, we continued improving the online proportion of our
sales, and digital innovation remains an important enabler for us
to enhance the customer experience and further solidify our robust
positioning for the online ordering channel.
"We retain a fundamental commitment to ensuring franchisees
remain profitable. As a result, franchisee demand was very strong
in 2022 and our Domino's Pizza network in Turkey grew by net 48
stores. Given our strong pipeline and sustained franchisee
interest, we remain confident that 2023 will be another solid year
for network expansion.
"2022 was the year that our own brand, COFFY, strengthened its
presence in the Turkish market with an accelerated expansion
programme. Having developed multiple store concepts to fit in with
local circumstances, our COFFY network reached 29 stores in five
cities at year end. Franchisee demand currently stands very strong
owing to COFFY's proven sales performance. This demand, alongside
our ambitious targets for 2023, will enable us to add further scale
to our coffee business."
Enquiries
DP Eurasia N.V.
İlknur Kocaer, CFA - Investor Relations
Director +90 212 280 9636
Buchanan (Financial Communications)
Richard Oldworth / Toto Berger / Verity +44 20 7466 5000
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: +44 3333000804
call: UK Toll-Free: 08003589473
Pin: 28610068#
URL for international dial in numbers:
https://events-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf
For further details, please contact Buchanan on +44 20 7466 5000
/ dp@buchanan.uk.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 830 stores (655 in Turkey, 159
in Russia, 10 in Azerbaijan and 6 in Georgia as of 31 December
2022) and operates through its owned corporate stores (18%) and
franchised stores (82%). In addition to its pizza delivery
business, the Group also has its own coffee brand, COFFY, which
trades from 29 stores at period-end, 19 of which are franchised.
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 of 31 December
----------------------------------------------------------------------------
2022 2021
Corporate Franchised Total Corporate Franchised Total
Turkey (Domino's) 89 566 655 100 507 607
Azerbaijan - 10 10 - 10 10
Georgia - 6 6 - 4 4
COFFY 10 19 29 5 3 8
Total 99 601 700 105 524 629
Russia 63 96 159 94 94 188
Grand Total 162 697 859 199 618 817
Delivery channel mix and online LfL growth
The following table shows the Group's delivery system sales (7)
, 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 2022 and 2021:
For the period ended 31 December
--------------------------------------------------
2022 2021
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
18.2 6.1 16.9 23.3 22.3
Store % % % % 7.1 % %
Group's online 24.8 71.0 35.6 25.2 69.1 31.4
Online platform % % % % % %
56.4 23.0 47.0 51.1 23.8 46.0
Aggregator % % % % % %
81.2 93.9 82.7 76.3 92.9 77.4
Total online % % % % % %
0.4
Call centre 0.6 % - % 0.4 % - 0.3 %
Total 100% 100% 100% 100% 100% 100%
The following table shows the Group's online LfL growth (4) ,
broken down by the Group's two largest countries in which it
operates, for the periods ended 31 December 2022 and 2021:
Group online system sales (pre-IAS 29) (after IAS 29)
LfL growth
2022 2021 2022 2021
Group(5) 50.4% 57.8% -4.3% 36.8%
Turkey 67.9% 73.3% -2.8% 45.2%
Russia (based on RUB) -9.5% 12.4% -9.5% 12.4%
--------------------------- ------------ ----------- -------- -------
Liquidity
The Group had TRY 368 million cash (TRY 9 million of which
relates to the Russian business) and an undrawn bank facility of
TRY 225 million as of 31 December 2022.
The Group has sufficient liquidity position to enable it to
pre-pay its bank borrowings in Russia, despite the recent
devaluation of TRY, if required. The Group obtained a waiver
(related with net debt/EBITDA ratio) from Sberbank with respect to
its covenants for all four quarters of 2022 and is in negotiations
to reset the covenants or repay the remaining loan. The principal
outstanding amount under the Sberbank loan currently amounts to RUB
0.7 billion, of which RUB 0.02 billion is supported by a cash
collateral deposit.
Notes
(1) COFFY numbers are included in all Turkey and Group figures,
unless presented separately. Like-for-like figures exclude COFFY.
These numbers are not audited.
(2) IAS 29 'Financial Reporting in Hyperinflationary Economies'
is currently applicable in Turkey. Company's interim results for
the period ending 30 June 2022, published on 30 September, was
adjusted accordingly.
(3) System sales are sales generated by the Group's corporate
and franchised stores to external customers and do not represent
revenue of the Group.
(4) 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). This is a non-IFRS
measure and non-IFRS measures are not audited.
(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 (4). This is a non-IFRS measure and non-IFRS measures are
not audited.
(6) Online system sales are system sales of the Group generated
through its online ordering channel.
(7) Delivery system sales are system sales of the Group
generated through the Group's delivery distribution channel.
(8) 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 December
----------------------------------------------------------
2022 2021
---------------------------- ----------------------------
Currency Period End Period Average Period End Period Average
----------- --------------- ----------- ---------------
EUR/TRY 19.882 17.356 14.682 10.423
RUB/TRY 0.258 0.249 0.173 0.119
EUR/RUB 75.655 72.151 84.070 87.188
Delivery - Take away / Eat in mix
For the period ended 31 December
--------------------------------------------------
2022 2021
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
Delivery 74.1% 75.2% 74.1% 78.6% 77.8% 78.3%
Take away / Eat in 25.9% 24.8% 25.9% 21.4% 22.2% 21.7%
Total 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFSALEIAFIV
(END) Dow Jones Newswires
January 30, 2023 02:00 ET (07:00 GMT)
Dp Eurasia N.v (LSE:DPEU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dp Eurasia N.v (LSE:DPEU)
Historical Stock Chart
From Jul 2023 to Jul 2024