DP Eurasia N.V Update on Russian Business (8476J)
August 21 2023 - 2:00AM
UK Regulatory
TIDMDPEU
RNS Number : 8476J
DP Eurasia N.V
21 August 2023
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Update on Russian business and operations
DP Eurasia (DPEU.L), the master franchisee of the Domino's Pizza
brand in Turkey, Russia, Azerbaijan and Georgia, today provides an
update on its Russian business and operations (represented by the
operations of its indirect subsidiary, Pizza Restaurants LLC ("
DPRussia ")).
The Company today announces the initiation of steps by
DPRussia's immediate holding company to file for DPRussia's
bankruptcy. This is preceded by the announcement on 28 December
2022, which confirmed that the Company was evaluating its presence
in Russia, the impact of sanctions and its continuing ability to
serve its customers in Russia. In this connection, the Russian
segment was classified as discontinued operations within the
Company's audited financial statements for the year ended 31
December 2022.
With the increasingly challenging environment, DPRussia's
immediate holding company is now compelled to take this step, which
will bring about the termination of the attempted sale process of
DPRussia as a going concern and, inevitably, the Group's presence
in Russia. A bankruptcy petition of DPRussia will be filed in
accordance with the relevant statutory requirements in due
course.
It is too early to have an exact estimate of the financial
impact of a potential insolvency of DPRussia on the consolidated
financial position and results of the Company. The Company can
confirm that the external debt of the Russian segment is an amount
of c.RUB 520 million, which was guaranteed by, inter alia, the
Group's Turkish subsidiary, has been fully and finally settled by
the Turkish subsidiary out of existing cash resources, with the
Group's gross debt reducing accordingly and a resulting gross cash
balance of TRY 162 million (based on the actual but unaudited cash
position as at 18 August 2023).
Further updates will be provided as appropriate and in due
course as matters progress.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended, and as it may be modified from
time to time by or under domestic law including, but not limited
to, by the Market Abuse (Amendment) (EU Exit) Regulations 2019 (SI
2019/310) ("MAR"), and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
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
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 833 stores (675 in Turkey, 142
in Russia, 10 in Azerbaijan and 6 in Georgia) as of 30 June 2023
and operates through its owned corporate stores (10%) and
franchised stores (90%). In addition to its pizza delivery
business, the Group also has its own coffee brand, COFFY, which
trades from 51 stores at period-end, 38 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.
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