DP Poland third-quarter system sales grow despite higher food costs

(Alliance News) - DP Poland PLC on Monday said sales in the third quarter of calendar 2024 have increased year-on-year, despite "upward pressure" on food costs.

The operator of Domino's pizza stores and restaurants in Poland and Croatia said total system sales in Poland in the three months that ended September 30 were PLN63.7 million, or GBP12.3 million, rising 16% from PLN55.0 million, last year and falling 6.3% from PLN68.0 million, in the second quarter.

Third-quarter total system sales in Croatia were EUR900,000, which DP Poland said was a 51% growth from last year, and flat in comparison to the EUR900,000 also reported for the second quarter.

Total system sales in Poland in the nine months that ended September 30 were PLN193.9 million, which the company said was a 19% increase year-on-year. Total system sales in Croatia in the first nine months of 2024 were EUR2.7 million, a 65% rise from the same period last year.

"Since April 2024, we have experienced upward pressure on food costs, particularly dairy products", DP Poland said. "Despite this, we have continued to grow orders and market share without sacrificing store level profitability."

The company said it is on track to open 16 locations during 2024, with 12 new sites and 4 stores relocated in the year so far. DP Poland aims to end the year with a total of around 122 stores.

Chief Executive Officer Nils Gornall said: "I am delighted to report that DP Poland continues to experience exceptional growth across both Poland and Croatia. In Poland, our system sales have increased 19% year-to-date, and orders are up 15%, showcasing our expanding customer base and the outstanding performance of our stores.

"We're fully committed to our strategy of delivering quality pizza quickly and providing great value to our customers. By opening 12 new locations this year and transitioning to a sub-franchised business model, we're rapidly gaining market share and setting the stage for even greater success.

"Overall, we are extremely pleased with the sales growth, organic store roll out and sub-franchise transition. With an average of over 800 orders per store each week in Poland, we're excited to carry this momentum into the fourth quarter and beyond."

The company remains "confident" in delivering full-year results in line with market expectations, with FactSet forecasting revenue of GBP54 million and earnings before interest, tax, depreciation and amortisation of GBP5.8 million. This would represent a 21% growth in revenue from GBP44.6 million the year before, and a 66% rise in Ebitda from GBP3.5 million.

Shares in DP Poland were up 4.6% at 11.50 pence each in London on Monday morning.

By Emily Parsons, Alliance News reporter

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