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DP Eurasia Pleased With 2019 Performance Despite Russian Struggles

Tue, 28th Jan 2020 10:24

(Alliance News) - DP Eurasia NV said Tuesday it is "pleased" with its performance in 2019 despite the "macroeconomic and competitive headwinds".

DP Eurasia is the master franchisee for Domino's Pizza in Turkey, Russia, Azerbaijan and Georgia.

In 2019, DP Eurasia recorded total system sales of TRY1.37 billion, about USD230 million, 22% higher than TRY1.13 billion recorded in 2018. System sales in Turkey rose 15% year-on-year to TRY845.7 million, while sales is Russia jumped 35% to TRY503.3 million.

Group like-for-like system sales were up 11%, with 13% like-for-like growth in Turkey, but only 0.7% in Russia.

DP Eurasia added 41 stores in 2019, to end the year with 765.

Chief Executive Officer Aslan Saranga said: "We are pleased with our top line performance given the macroeconomic and competitive headwinds in our markets in 2019. We are particularly pleased to have recorded double-digit like-for-like growth in Turkey despite a slow start to the year. Rapidly improving macro parameters in the fourth quarter were also a key catalyst to our success; however, the volatile situation beforehand was not conducive for store openings."

Saranga said it was a "challenging" year for the company in Russia.

"Greater Moscow like-for-like performance was below plan due to new competitor store openings and increased aggregator activity. Issues with regional franchisees have been successfully resolved, but the store opening guidance has not been achieved," he added.

Online like-for-like sales rose 33% in Turkey, with Russian online sales up 15%.

"Digital continues to drive our business forward. Online ordering as a percentage of delivery has reached 70%, up from 61% in 2018," said Saranga.

DP Eurasia said it is "confident" in its growth strategy and expects 2019 adjusted Ebitda to be in line with expectations. In 2018, the company recorded adjusted Ebitda of GBP110.6 million.

Shares in DP Eurasia were up 0.7% in London on Tuesday at 47.34 pence.

By Paul McGowan; paulmcgowan@alliancenews.com

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