DP Poland PLC AGM Trading Update (1407R)
June 26 2020 - 2:00AM
UK Regulatory
TIDMDPP
RNS Number : 1407R
DP Poland PLC
26 June 2020
DP Poland plc
("DP Poland" or "the Company")
AGM Trading Update
Ahead of today's Annual General Meeting ('AGM'), to be held at
9:00 a.m. BST, DP Poland announces a trading update in respect of
the five months ended 31 May 2020. In light of the COVID-19 crisis
and the consequent delay to the announcement of its audited results
for the year ended 31 December 2019, the Company considers it
appropriate to provide a more detailed update on current trading
than its usual practice at its AGMs.
Trading in 2020 has started broadly in line with management's
expectations. COVID-19 has had relatively little impact on our
business in comparison to other businesses in our industry as we
have been able to keep open all our stores and our 2 commissaries
operating without interruption. As previously reported, from
Saturday, 14 March 2020, the Polish government imposed 'lock down'
restrictions across the country. As a result, like-for-like ("LFL")
System Sales and System Sales were down 14% and 10% respectively
for the month of March. However, performance recovered in the
following months, with LFL System Sales up by 3% and System Sales
up by 6% in each of the months of April and May.
A positive impact of COVID-19 has been a reduction in our food
and labour costs and in some of our rent costs. In addition, the
recruitment market has improved for us, in terms of both
availability of staff and labour costs. However we have also
incurred some additional costs, principally in connection with
safety and cleaning, across our operations to meet the requirements
necessitated by COVID-19 regulations.
Our interactions with the food aggregators, Pyszne.pl
(takeaway.com) and our new partner, Glovo, have been positive.
Our focus on customer service is delivering delicious pizzas in
less than 25 minutes from order. In one of our stores we achieved a
weekly record of delivering pizza in just over 14 minutes from
order.
The Directors note that, and as reported by Bloomberg, the
Polish economy is perceived to be the most resilient to the
pandemic crisis within the European Union. According to EU
forecasts, Polish GDP will shrink by 4.3 per cent. in 2020 and this
will be the smallest expected drop among all EU countries,
Bloomberg noted [1] .
Iwona Olbryś, Chief Executive of DP Poland said:
"These unprecedented times continue to pose an uncertain trading
backdrop. As such, we remain unable to provide any guidance for the
full year. However, while the COVID-19 crisis presents our industry
in Poland with some major obstacles, I believe that we are in a
relatively good position, given in particular our focus on delivery
and online channels."
[1]
https://www.bloomberg.com/news/articles/2020-05-11/eu-s-most-virus-shielded-member-seen-headed-for-u-shaped-rebound
For Further Information
DP Poland plc +44 (0) 20 3393 6954
Nick Donaldson, Non-Executive Chairman
Iwona Olbryś, CEO
N+1 Singer - NOMAD and Broker
Shaun Dobson / George Tzimas / Iqra
Amin +44 (0) 20 7496 3000
Notes for editors
About DP Poland plc
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. There are currently 69 Domino's
Pizza stores, 46 corporately managed, (2 of which are under
management contract) and 23 sub-franchised.
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END
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