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LONDON (Alliance News) - DP Poland PLC, which has the exclusive master franchise in Poland for Domino's Pizza, Monday reported a seventh consecutive quarter of like-for-like sales growth and said it had increased the number of stores that are consistently profitable, meaning its loss narrowed in the first half of the year.
DP Poland currently has 18 stores in Warsaw and Krakow and a sub-franchised store in Warsaw. It is planning to roll out stores into new cities in 2015 and extend the sub-franchising model.
In a statement, the company said its loss before interest, tax, depreciation and amortisation for the six months to end-June was GBP1.3 million, narrower than the GBP1.4 million loss it reported a year earlier, as revenue rose to GBP1.9 million, from GBP1.5 million. Its pretax, pre-items loss was GBP1.5 million, narrowed from GBP1.6 million.
In local currency terms, like-for-like store Ebitda rose 61%, like-for-like sales rose 13%, like-for-like gross profit was up 10% and like-for-like order count was up 11%.
"We can see the beginning of that virtuous circle of growing store numbers and reducing food costs that has been central to the success model in Domino's Pizza markets around the world," DP Poland Chief executive Peter Shaw said.
"We believe that we have proven the model in a core number of stores with sustained and growing profitability. We are accordingly identifying sites for new stores in Warsaw, Krakow and new cities, both corporate and sub-franchised, while being mindful of the logistical costs in servicing new regions," the company added.
DP Poland said online ordering continued to increase, and made up 58% of delivery sales in the first half.
DP Poland shares were flat at 9.50 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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