Last checked at 14 Nov 2023 07:00
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.
DP Poland PLC
("DP Poland", the "Company" or the "Group")
Trading Update
DP Poland, the operator of pizza stores and restaurants across Poland and Croatia, announces a trading update for Q3 2023 and trading to the end of October.
Highlights
· LFL System Sales in Poland increased 14.1% In Q3
· LFL System Sales in Poland increased 34.8% in October to a new monthly record of PLN 22.2m
· LFL System order count in Poland grew 15.4% in Q3 and by 37.2% in October
· Food and labour costs remain in line with expectations
· Croatian total System Sales grew 30% in Q3 driven by new store openings in the prior year
· Croatian total System Sales grew 34.4% in October with LFL System Sales +3.3%
· Cash at bank of £2.4m as at 30 September 2023 (£2.7m as at 30 June 2023)
DP Poland's Chief Executive Officer, Nils Gornall, said:
"We have worked hard to transform the business and its very satisfying to see another quarter of double digit LFL sales growth in Poland. Growth in October was an impressive 34.8% and set a new record for monthly sales of PLN 22.2m.
We are seeing the benefits of our focus to build a High Volume Mentality business; delivering a compelling value proposition for our customers based on fantastic quality pizza delivered quickly. We have seen a consistent improvement in customer satisfaction ratings as we deliver on our strategy and this is reflected in increased consumer retention and higher order counts. These are key elements to delivering the highly profitable businesses we have seen in other Domino's markets.
The Croatian business also continues to deliver strongly with a very good performance of all stores in the network and the most recently opened store in October is already exceeding our initial sales expectations.
It's fantastic to see the business begin to capitalise on the potential of the markets we operate in, but this is only the beginning, and we expect performance to continue improving."
Poland
PLNm | Q1 2023 | Q2 2023 | Q3 2023 | October 2023 | ||||
| PLNm | % YoY change | PLNm | % YoY change | PLNm | % YoY change | PLNm | % YoY change |
Total System sales1 | 53.1 | 15.4% | 55.0 | 14.4% | 55.0 | 7.1% | 22.2 | 32.7% |
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LFL System sales2 | 52.2 | 19.4% | 53.7 | 16.8% | 54.3 | 14.1% | 21.8 | 34.8% |
non-delivery | 16.9 | 47.7% | 18.8 | 6.3% | 20.0 | 11.9% | 7.0 | 12.2% |
delivery | 35.3 | 9.3% | 34.8 | 23.3% | 34.3 | 15.5% | 14.8 | 48.9% |
UnitsM | Q1 2023 | Q2 2023 | Q3 2023 | October 2023 | ||||
| UnitsM | % YoY change | UnitsM | % YoY change | UnitsM | % YoY change | UnitsM | % YoY change |
Total System orders1 | 1.0 | 4.0% | 1.0 | 12.2% | 1.0 | 9.1% | 0.4 | 33.4% |
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LFL System orders2 | 0.9 | 7.3% | 1.0 | 15.5% | 1.0 | 15.4% | 0.4 | 37.2% |
1 System Sales and System orders - total retail sales or orders including sales or orders from corporate and sub-franchised stores.
2 Like-for-like System Sales growth in Polish Z?oty, matching trading periods for the same stores or orders growth in units, matching trading periods for the same stores
Current trading remains strong, with double digit sales growth continuing and driven largely by growth in order counts. An improved customer value proposition, high quality pizza delivered quickly, is driving an improved customer satisfaction rating and this is reflected in improved customer retention numbers.
Total System Sales growth of 7.1% in Q3 2023 doesn't fully reflect the 14.1% LFL sales growth in the same period as we took the decision to close some stores that were positioned in shopping centres in order to relocate them to more delivery efficient premises. Having fully reviewed our portfolio over the past 12 months, it is expected that store closures have largely been completed, positioning the company for future growth.
Food and labour costs remain in line with expectations.
Croatia
(EURm) | YTDOctober 2022 | YTDOctober 2023 | % changevs. 2022 |
Total System Sales1 | 1.4 | 1.9 | 34.4% |
LFL System Sales2 | 1.4 | 1.5 | 3.3% |
1 System Sales and System orders - total retail sales or orders including sales or orders from corporate and sub-franchised stores.
2 Like-for-like System Sales growth in Euro, matching trading periods for the same stores or orders growth in units, matching trading periods for the same stores
3 Difference between Total System Sales growth and LFL system sales growth driven by 3rd store opening in June 2022, 4th store opening in June 2023 and a 5th store opening in October 2023
LFL System Sales in Croatia have shown lower growth levels than Poland due to the high performing nature of the three existing stores in 2022. The Company opened the 5th corporate store in the Croatian market in October 2023, where sales have exceeded expectation in the first few weeks of operation.
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
Singer Capital Markets (Nominated Adviser and Broker)
Shaun Dobson / Jen Boorer
Tel: +44 (0) 20 7496 3000
Notes for editors
About DP Poland plc
DP Poland has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland and Croatia. The group operates 116 stores and restaurants throughout cities and towns in Poland and Croatia.