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4 Nov 2024 07:00
DP Poland PLC
("DP Poland", the "Company" or the "Group")
Q3 2024 Trading Update
DP Poland, the operator of Domino's pizza stores and restaurants across Poland and Croatia, announces a trading update for the nine months to 30 September 2024.
DP Poland's 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 by 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 in Q4 and beyond."
Financial detail
Poland |
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PLNm | Q1 2024 | Q2 2024 | Q3 2024 | YTD SEP 2024 | ||||
| PLNm | % YoY change | PLNm | % YoY change | PLNm | % YoY change | PLNm | % YoY change |
Total System sales1 | 62,2 | 17,3% | 68,0 | 23,7% | 63,7 | 15,8% | 193,9 | 19,0% |
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LFL System sales2 | 60,8 | 17,9% | 66,7 | 26,5% | 61,2 | 21,0% | 188,7 | 21,8% |
non-delivery | 19,0 | 17,7% | 21,3 | 20,3% | 20,0 | 10,4% | 60,3 | 16,0% |
delivery | 41,8 | 18,0% | 45,4 | 29,6% | 41,1 | 26,9% | 128,3 | 24,7% |
M Orders | Q1 2024 | Q2 2024 | Q3 2024 | YTD SEP 2024 | ||||
| M Orders | % YoY change | M Orders | % YoY change | M Orders | % YoY change | M Orders | % YoY change |
Total System orders1 | 1,1 | 14,4% | 1,2 | 20,3% | 1,1 | 10,1% | 3,4 | 15,0% |
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LFL System orders2 | 1,1 | 14,8% | 1,2 | 22,8% | 1,1 | 14,1% | 3.4 | 17,3% |
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Croatia |
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EURm | Q1 2024 | Q2 2024 | Q3 2024 | YTD SEP 2024 | ||||
| EURm | % YoY change | EURm | % YoY change | EURm | % YoY change | EURm | % YoY change |
Total System sales1 | 0,9 | 74,1% | 0,9 | 72,7% | 0,9 | 51,0% | 2,7 | 65,4% |
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LFL System sales2 | 0,5 | 8,8% | 0,6 | 9,8% | 0,6 | 4,4% | 1,8 | 7,5% |
1 System Sales and System Orders - total retail sales or orders including sales or orders from corporate and sub-franchised stores, unaudited
2 Like-for-like System Sales growth in Polish Złoty or Euro, matching trading periods for the same stores
Financial Highlights
· LFL System Sales in Poland grew by 21.8% YTD (end September 2024), with the Delivery channel continuing to increase its share of our business, now accounting for two-thirds of System Sales.
· Order counts grew strongly and most importantly was the main driver of our revenue growth, with Poland LFL System Orders increasing by 17.3% YTD, and Average Weekly Order Count for Poland continuing to expand, to over 800 per store YTD.
· Croatia LFL System Sales grew by 7.5%, maintaining excellent performance. System sales grew by 65.4% driven by new store openings.
· Since April 2024 we have experienced upward pressure on food costs, particularly dairy products. Despite this, we have continued to grow orders and market share without sacrificing store level profitability.
Operational Highlights
· We remain on track to open 16 locations during 2024 with 12 new sites and 4 stores relocated as we continue to optimise our store network. We target to end the year with an estimated 122 store network.
· Five corporate stores sold to franchisees YTD, as we transition to a sub-franchised business model.
· Planned investment in Lodz commissary was completed, adding new silos and dough making equipment, materially growing production capacity and preparing the Group for further growth.
The Board remains confident in the Group's performance and expects to be in line with market expectations for 2024.
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 / Oliver Platts
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 113 stores and restaurants throughout cities and towns in Poland and Croatia.
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