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(Alliance News) - DP Poland PLC on Tuesday reported a dip in same store sales growth in the interim period, but recently the trend has turned positive again.
The company's system sales for the six months to June fell 1% on a like-for-like basis. However, excluding January and February, the figure was positive, and in July it rose 1% year-on-year and in August by 8%.
DP Poland, which holds the master franchise for Domino's Pizza stores in Poland, said the decline in the first two months of the year was due to advertising campaigns on Polish television a year before.
Overall sales climbed 10% to PLN41 million, or GBP8.3 million, with the pretax loss widening to GBP1.9 million from GBP1.1 million, mainly due to higher depreciation, amortisation, and impairment charges.
Non-Executive Chair Nick Donaldson said: "DP Poland delivered continued expansion and growth in system sales across both corporate stores and commissary during the first half of the year, notwithstanding the strong comparatives driven by TV advertising in January and February 2018.
"March to June 2019 saw positive growth in both like-for-like system sales and like-for-like order count. Pleasingly, system sales growth has continued in July, August and September."
"The recent headwinds affecting the Polish food delivery sector, including food and labour costs, and the impact of the aggregators on the sector, continue. However we remain confident that, underpinned by our well-invested infrastructure and world-renowned service and products, Domino's Pizza in Poland will continue to grow in this environment," Donaldson continued.
"The strong fundamentals in the Polish economy and continued expansion of the delivery market support the growing opportunity for the Domino's proposition in Poland."
The company has also appointment a new general managing for Poland, Iwona Olbrys, replacing Peter Shaw.
DP Poland shares were 8.5% lower on Tuesday at a price of 5.38 pence each.
By George Collard; georgecollard@alliancenews.com
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