Dp Poland Regulatory News (DPP)

DP Poland PLC

("DP Poland", the "Company" or the "Group")

Trading Update Q1 2025

Appointment of Nominated Adviser, Financial Adviser and Sole Broker

DP Poland, the operator of Domino's pizza stores and restaurants across Poland and Croatia, is pleased to announce a trading update for Q1 2025.

DP Poland's Chief Executive Officer, Nils Gornall, said:  

"Our strategic goal to become Poland's leading pizza brand remains firmly on track, underpinned by a capital-light, franchise-led model. The integration of Pizzeria 105, alongside the sale of corporate stores, reflects our sharpened focus on franchising and marks an important step in building a more resilient, scalable business. As we pivot from pure volume growth to value creation, our priority is enhancing franchisee profitability and strengthening margins. Despite a challenging macroeconomic backdrop, our Q1 performance was encouraging and reinforces our confidence in the strategy."

Strategic and Operational Highlights

The Group continues to make strong progress in executing its long-term growth strategy, with a clear focus on becoming the leading pizza brand in Poland.

Following three consecutive years of high pace like-for-like sales growth, the business has reached a level of maturity that enables it to transition to the next phase of development. This will focus on acquisition opportunities, driving organic expansion and accelerating the franchising of corporate owned stores.

The acquisition of Pizzeria 105, which completed in Q1, marks a significant milestone in this journey. The transaction not only strengthens DP Poland's footprint but also fast tracks our sub franchising strategy bringing 76 experienced franchisees into the Group, creates opportunities for growth and expansion and accelerates the shift toward a more scalable, capital-light franchise-led model.

Alongside this, DP Poland continues to advance its corporate store sell-down programme. Three additional Domino's corporate stores were franchised in Q1 to three new franchisee partners, in line with our strategic objective to reduce overheads, improve cash conversion, and create a more stable, recurring earnings profile.

The Group opened four new corporate stores during Q1 and completed the renovation of two existing locations, further enhancing brand presence and expanding access to new customers. As part of our ongoing network optimisation strategy, we closed two underperforming sites, strengthening the overall quality and resilience of our store portfolio.

Trading Update Q1 2025

Poland

1 System Sales and System orders - total retail sales or orders including sales or orders from corporate and sub-franchised stores - only Domino's stores without Pizzeria 105 stores.

2 Like-for-like System sales and System orders is reported in Polish Złoty and reflects performance over comparable trading periods for the same stores.

Trading in Poland remained stable in Q1 2025. System sales rose by 6.5%, year-on-year to PLN 66.3m, with like-for-like (LFL) sales up 2.9%. Growth was primarily driven by higher average ticket values, reflecting a strategic shift in pricing. This approach helps offset cost pressures, notably in labour, while order volumes were flat to maintain healthy margins.

Croatia

1 System Sales and System orders - total retail sales or orders including sales or orders from corporate stores.

2 Like-for-like System Sales and System orders is reported in Euros, matching trading periods for the same stores or orders growth in units, matching trading periods for the same stores

Our operations in Croatia delivered a strong performance, with total and like-for-like system sales both growing 12.7% YoY. Despite implementing pricing adjustments to offset rising labour costs, sales remained strong. The brand continues to gain momentum in the market, with two new stores scheduled to open in the coming months.

Outlook

The acquisition of Pizzeria 105 represented a strategic step to accelerate our growth, increase our store footprint, and expand our base of franchisee partners. We are encouraged by the progress to date and excited about the transformational impact this acquisition is expected to have on the business. The Group expects to announce its final results for the year ended 31 December 2024 in mid-May and will include an investor webinar and roadshow, along with an update on the Pizzeria 105 integration. Management reiterates its market guidance for pre-IFRS 16 EBITDA of £1.2 million for the year ended 31 December 2024.

Appointment of Nominated Adviser, Financial Adviser and Sole Broker

DP Poland is pleased to announce the appointment of Panmure Liberum Limited as the Company's Nominated Adviser, Financial Adviser and Sole Broker, with immediate effect.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

The person responsible for arranging the release of this announcement on behalf of the Company is Nils Gornall, CEO.

Enquiries:

DP Poland plc

Nils Gornall, CEO

Tel: +44 (0) 20 3393 6954

Email: ir@dppoland.com 

Panmure Liberum Limited (Nominated Adviser, Financial Adviser and Broker)

Will Goode / Ailsa Macmaster Tel: +44 (0) 20 3100 2000

Notes for editors

About DP Poland plc

DP Poland holds the exclusive rights to develop, operate, and sub-franchise Domino's Pizza stores across Poland and Croatia. The group currently manages 120 Domino's locations in cities and towns throughout both countries. In addition to operating 90 Pizzeria 105 outlets across Poland.