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(Sharecast News) - Eastern Europe-focussed pizza takeaway operator DP Poland reported a record-breaking year in a trading update on Tuesday, with the fourth quarter of 2023 being the strongest in its history.
The AIM-traded firm, which holds a master franchise for the Domino's Pizza brand, put the success down to its 'high-volume mentality' and a focus on delivering quality pizza quickly.
In Poland, like-for-like system sales surged almost 20%, driven by a 27% increase in like-for-like system orders during the fourth quarter.
Average weekly order counts reached 731 for the year, marking a 19% increase from 2022, while average delivery times improved by 4%, leading to profitability by August.
In the fourth quarter of 2023, the average weekly order count exceeded 800.
The company said it ended the year with an optimised store network, supporting higher like-for-like sales, and expanded its store count to 116.
Looking at the year's key highlights, the board expected full-year group system sales of £46m, while like-for-like system sales in Poland increased by 27.5% in the fourth quarter and 19.7% for 2023, with strong growth in both delivery and non-delivery segments.
Like-for-like system order count in Poland increased by 27.1% in the fourth quarter and by 16.4% in the whole year.
Croatian total system sales grew 75.7% in the final quarter of the year, and by 44.2% in 2023, driven by new store openings.
Food costs for 2023 were as expected, with a reduction in the second half, while labour costs were in line with expectations for the year, but inflationary pressures were expected to continue in 2024.
Pre-IFRS 16 EBITDA had turned profitable since August, and was set to align with market expectations for the full 2023 financial year.
Cash at bank stood at £2.2m on 31 December, compared to £2.7m at the end of June.
"2023 was a record year for DP Poland - in particular, the second half of the year showed an acceleration in growth, with consistently improving profitability," the company's board said in its statement.
"The company achieved pre-IFRS 16 EBITDA profitability from August and 2023 full-year performance is in line with market expectations.
"In 2024, we expect volume-led growth to continue, supported by an easing of inflationary pressures and a new pro-European parliament following the recent Polish election."
DP Poland said it would continue to focus on delivering a compelling customer value proposition as it grew, ensuring quick delivery times.
"The business now has the solid foundations required for future expansion and in 2024 will begin the transition of the company towards a more widespread sub-franchised business model."
At 1342 GMT, shares in DP Poland were up 6.18% at 11.36p.
Reporting by Josh White for Sharecast.com.
