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Market Cap: £70.80m
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Trading Update

15 Jul 2022 07:00

RNS Number : 5691S
DP Poland PLC
15 July 2022
 

The information contained within this announcement is deemed to constitute inside information for the purposes of article 7 of the market abuse regulation (EU) no. 596/2014

 

DP Poland PLC

("DP Poland" or the "Group")

 

Trading Update, Investor Presentation and Acquisition Update

 

DP Poland, the operator of pizza stores and restaurants across Poland, announces an unaudited trading update for the month of June 2022 and first 10 days of July 2022. The Company will be holding its Annual General Meeting ("AGM") at 10:00 a.m. BST today at 1 Embankment Place, London, WC2N 6RH.

 

DP Poland's Chief Executive Officer, Piotr Dzierżek, said: "I am delighted to see the strong sales performance achieved in the first half of 2022 continuing which is a consequence of our hard work in prior months and investment in customer acquisition. I welcome Nils Gornall to the company and I am convinced that his outstanding track record, supported with guidance from Andrew Rennie, we can accelerate this growth to the benefit of our customers and shareholders"

 

Nils Gornall said: "I started my Domino's career at the age of 15 and had the privilege of running 5 of the 10 best stores in Australia, one of the most successful Domino's markets globally and the birthplace of Domino's Pizza Enterprises.

 

My experience in Australia helped to build the success of our Croatian business and my goal is now to transfer those learnings to the Polish market. I've now spent a number of weeks on the ground in Poland and I am excited by the opportunity for the Domino's Pizza brand in the country. I feel confident we will emulate the success of the brand in other markets."

 

Financial Highlights

 

· Like-for-like (LFL) System Sales1 increased by 23.5% in June 2022 compared to June 2021

o Strong growth in dine-in sales up by 55.8% LFL compared to June 2021 and 21.3% compared to June 2019

o Delivery LFL System Sales have continued to grow by 9.6% LFL despite a resurgence of dine-in sales following the relaxation of COVID-19 restrictions

· Total System Sales2 increased by 20.5% in June 2022 compared to June 2021

· LFL System Sales for 10 days of July 2022 increased by 32.9% compared to July 2021

o Delivery LFL System Sales have continued to present strong grow by 21.4%

o Dine-in sales upholds June trend with 55.3% LFL System Sales growth

· June 2022 System Sales significantly above pre-COVID-19 levels

LFL System Sales increased by 23.1% in June 2022 compared to June 2019

Total System Sales increased by 15.1% in June 2022 compared to June 2019

· Cash at bank of £0.8m as at 30 June 2022 (as at 31 December 2021: £1.8m); the decrease in cash balance results from CAPEX for two new stores openings, purchase of 6 new ovens, 30 new fuel scooters, 50 e-bikes and covering working capital needs.

 

 

June 2022

vs June 2021

vs June 2019

LFL System Sales

23.5%

23.1%

Total System Sales

20.5%

15.2%

 

 

1 Like-for-like System Sales growth in PLN, matching trading periods for the same stores between 1 January and 31 December 2019,1 January and 31 December 2020,1 January and 31 December 2021 and 1 January and 31 December 2022

2 System Sales - total retail sales including sales from corporate and sub-franchised stores, unaudited

 

Operational Highlights

 

DPP is a strong player in the largest Polish cities but the management estimates that the current store count can be multiplied via organic as well as acquisitive growth. After the time of consolidation and post completion of the integration of Dominium, the company has opened in June two new stores: in Szczecin and in Siedlce. The latter is a showcase of a potential that is available to DPP in the second and third tier Polish cities.

 

Acquisition Update

Further to the Company's announcement on 15 June 2022 in relation to the proposed acquisition of All About Pizza d.o.o, trading as Domino's Croatia, the reorganisation of All About Pizza d.o.o remains ongoing. The Company expects this to complete ahead of the previously announced longstop date of 29 July 2022, and will make further announcements as appropriate.

 

Investor Presentation

 

DP POLAND PLC is pleased to announce that Przemysław Głębocki, Małgorzata Potkańska and Nils Gornall will provide a Trading Update via the Investor Meet Company platform on 26th Jul 2022 at 3:00pm BST.

 

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet DP POLAND PLC via:

https://www.investormeetcompany.com/dp-poland-plc/register-investor

 

Investors who already follow DP POLAND PLC on the Investor Meet Company platform will automatically be invited.

 

The person responsible for arranging the release of this announcement on behalf of the Company is Przemysław Głębocki, Non-Executive Director.

 

Enquiries:

DP Poland plc

Przemysław Głębocki, Non-Executive Director

Tel: +48 (22) 654 64 15

Singer Capital Markets (Nominated Adviser and Broker)

Shaun Dobson / Will Goode / Amanda Gray

Tel: +44 (0) 20 7496 3000

 

Notes for editors

About DP Poland plc

DP Poland, through its wholly owned subsidiary DP Polska S.A., has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland. Following its acquisition of Dominium S.A., which constituted a reverse takeover under the AIM Rules for Companies, the Group now operates over 100 stores and restaurants across a number of cities and towns in Poland.

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