This announcement contains
inside information for the purposes of the UK Market Abuse
Regulation and the Directors of the Company are responsible for the
release of this announcement.
DP Poland
PLC
("DP
Poland", the "Company" or the "Group")
Q2 & H1 2024 Trading
Update
DP Poland, the operator of Domino's
pizza stores and restaurants across Poland and Croatia, announces a
trading update for the six months to 30 June 2024.
DP Poland's Chief Executive
Officer, Nils Gornall, said:
"DP Poland has achieved a third
consecutive year of growth in excess of 15% in the first half. In
H1 2024, Like-for-like System Sales increased 22%, driven by System
Orders up nearly 19% in Poland. The Group continues to benefit from
our consistent strategy, providing a compelling value proposition
for our customers based on fantastic quality pizza delivered
quickly.
Growth accelerated in Q2 2024, with
Like-for-like System Sales up 26.5% and average weekly order counts
reaching over 850 per store, and on track to achieve our 900
target. While we have faced rising food costs, we remain dedicated
to gaining market share and are confident in meeting market
expectations for 2024.
We are on track to open 16 new
stores in 2024, of which four are relocations, expanding our
current 111 store count.
Overall, we are extremely pleased
with sales growth, and look forward to the remainder of the year
with confidence. The Group continues to demonstrate what can be
achieved in its owned stores, and the planned transition to a
sub-franchisee model will accelerate growth and increase return on
capital."
Financial
detail
|
Poland
|
|
|
|
|
|
|
|
PLNm
|
Q1 2024
|
Q2 2024
|
H1 2024
|
|
|
PLNm
|
% YoY
change
|
PLNm
|
% YoY
change
|
PLNm
|
% YoY
change
|
|
Total System Sales1
|
62.2
|
17.3%
|
68.0
|
23.7%
|
130.2
|
20.6%
|
|
|
|
|
|
|
|
|
|
LFL
System Sales2
|
60.8
|
17.9%
|
66.7
|
26.5%
|
127.5
|
22.2%
|
|
non-delivery
|
19.0
|
17.7%
|
21.3
|
20.3%
|
40.3
|
19.1%
|
|
delivery
|
41.8
|
18.0%
|
45.4
|
29.6%
|
87.2
|
23.7%
|
|
|
|
|
|
|
|
|
|
M
Orders
|
Q1 2024
|
Q2 2024
|
H1 2024
|
|
|
M Orders
|
% YoY
change
|
M Orders
|
% YoY
change
|
M Orders
|
% YoY
change
|
|
Total System Orders1
|
1.1
|
14.4%
|
1.2
|
20.3%
|
2.3
|
17.4%
|
|
|
|
|
|
|
|
|
|
LFL
System Orders2
|
1.1
|
14.8%
|
1.2
|
22.8%
|
2.3
|
18.8%
|
|
|
|
|
|
|
|
|
|
Croatia
|
|
|
|
|
|
|
|
EURm
|
Q1 2024
|
Q2 2024
|
H1 2024
|
|
|
EURm
|
% YoY
change
|
EURm
|
% YoY
change
|
EURm
|
% YoY
change
|
|
Total System Sales1
|
0.9
|
72.2%
|
0.9
|
65.2%
|
1.8
|
68.6%
|
|
|
|
|
|
|
|
|
|
LFL
System Sales2
|
0.5
|
7.5%
|
0.6
|
4.8%
|
1.1
|
6.1%
|
1 System Sales and System
Orders - total retail sales or orders including sales or orders
from corporate and sub-franchised stores,
unaudited
2 Like-for-like System Sales
growth in Polish Złoty or Euro, matching trading periods for the
same stores
Financial Highlights
· Poland
LFL System Sales grew 22.2% y/y during H1 2024, with Delivery
continuing to increase its share of our business, now accounting
for two-thirds of System Sales.
· Order
counts also grew strongly and most importantly was the main driver
of our revenue growth, with Poland LFL System Orders increasing by
18.8% y/y across H1, and Average Weekly Order Count for Poland
continuing to expand, to 825 per store for H1 2024 (and reaching
850 during Q2 2024), up from over 800 during Q4 2023.
· Croatia's growth of 68.6% was driven by store openings, but
the overall LFL System Sales growth of 6.1% was as
expected.
· During
H1 2024 we experienced upward pressure on food costs, particularly
dairy products. Despite this, we continue to grow market
share without sacrificing store level profitability.
Operational Highlights
· Store
numbers remain on track to open 16 locations across 2024 with 12
new sites and 4 stores relocated as we continue to optimise our
store network.
· Investment in new silos in our Lodz commissary was completed.
This will allow improved operational flexibility in our stores,
reduce flour costs immediately and assist with improved margin over
time.
The person responsible for arranging
the release of this announcement on behalf of the Company is Nils
Gornall, CEO.
Enquiries:
DP
Poland plc
Nils Gornall, CEO
Tel: +44 (0) 20 3393 6954
Email:
ir@dppoland.com
Singer Capital Markets (Nominated Adviser and
Broker)
Shaun Dobson / Jen Boorer / Oliver
Platts
Tel: +44 (0) 20 7496 3000
Notes for editors
About DP Poland plc
DP Poland has the exclusive right to
develop, operate and sub-franchise Domino's Pizza stores in Poland
and Croatia. The group operates 111 stores and restaurants
throughout cities and towns in Poland and Croatia.