DP Poland PLC Trading Update (5670E)

TIDMDPP

RNS Number : 5670E

DP Poland PLC

11 February 2015

DP Poland PLC ("DP Poland" or the "Company")

Update on Store Performance for the full year to 31 December 2014, unaudited.

System sales up 35%. 9 consecutive quarters of double digit like-for-like system sales growth. Step change in store EBITDA performance.

DP Poland, through its wholly owned subsidiary DP Polska S.A., has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland. It currently operates 12 corporate stores in Warsaw and Krakow and sub-franchises 6 stores in Warsaw.

Highlights

   --      System sales(1) PLN 20.4m 2014 vs PLN 15.1m 2013 up 35% 
   --      Strong like-for-likes(2)

o Like-for-like system sales (PLN) up 19%

o Like-for-like gross profit(3) (PLN) up 18%

o Like-for-like order count(4) up 19%

   --      Total stores(5) EBITDA positive for each month of Q4 2014 
   --      Top 3 corporate stores averaged +GBP24k(6) EBITDA each in 2014 vs -GBP12k(6) each in 2013 
   --      Oldest corporate store delivers EBITDA of +GBP34k(6) in 2014 
   --      Franchisees reporting growing sales and profitability 
   --      Significant new store openings targeted for 2015

Peter Shaw, Chief Executive of DP Poland said:

"Sustained double digit like-for-like system sales growth coupled with continuing reductions in food and operational costs resulted in significant improvements in store EBITDA performance.

Our top 3 stores averaged GBP24k EBITDA profit each in 2014, compared to an average loss of -GBP12k each in 2013. This transformation in store performance is set to continue in 2015 as we focus on providing our customers with great product, great service and attractive promotions, supported by continuing improvements in food costs.

We reached a milestone in Q4 2014 with total store EBITDA becoming positive for each month during the quarter. This total includes our newest stores in Krakow as we grow customer numbers and progress towards EBITDA breakeven.

I am delighted to report that the stores recently acquired by our first franchisees are performing well, exhibiting strong sales growth and generating profitable commissary sales of food and non-food items for DP Polska.

This strong sales performance continued into January 2015 with like-for-like system sales at +18%."

11 February 2015

(1) System Sales - total retail sales including sales from corporate and sub-franchised stores

(2) Like-for-like growth in PLN, matching trading periods for the same stores between 1 January and 31

December, 2013 and 1 January and 31 December, 2014

(3) Sales minus food costs. This figure excludes sub-franchised stores

(4) Order count for corporate and sub-franchised stores

(5) Total stores include corporate and sub-franchised stores

(6) Exchange rate average for 2014 GBP1:PLN 5.1924

Enquiries:

 
 DP Poland PLC 
  Peter Shaw, Chief Executive 
  www.dppoland.com                     020 3393 6954 
 Peel Hunt LLP 
  Dan Webster/ Richard Brown/George 
  Sellar                               020 7418 8900

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTDMGMZVGLGKZM

Dp Poland (LSE:DPP)
Historical Stock Chart
From Jun 2024 to Jul 2024