Last checked at 30 May 2023 12:02
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 2023 to the end of April.
Trading Update YTD April 2023
Poland
PLNm | YTDApr2022 | YTDApr2023 | % change vs. 2022 |
Total System Sales1 | 61.6 | 70.8 | 14.9% |
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LFL System Sales2 | 58.7 | 69.5 | 18.4% |
dine-in | 7.6 | 8.7 | 15.2% |
carry-out | 8.9 | 14.0 | 56.9% |
delivery | 42.1 | 46.8 | 11.2% |
1 System Sales - total retail sales including sales from corporate and sub-franchised stores. unaudited
2 Like-for-like System Sales growth in Polish Złoty, matching trading periods for the same stores between 1 January and 30 April 2022 and 1 January and 30 April 2023
Current trading remains strong, with double digit sales growth continuing and higher order counts. LFL Sales increased by 18.4% year to date in 2023 vs. corresponding period in 2022, with the growth split between sales channels. LFL Sales in April 2023 were up by 16.6% vs April 2022.
Inflationary costs have begun to show a positive downward trend which should support profitability in coming quarters. Energy costs are beginning to abate and food costs began to drop in May 2023, however, labour inflationary pressures have remained.
Croatia
(EURm) | YTDApr2022 | YTDApr2023 | % change vs. 2022 |
Total System Sales1 | 0.44 | 0.66 | 52.7%3 |
LFL System Sales2 | 0.43 | 0.50 | 15.7% |
1 System Sales - total retail sales including sales from corporate and sub-franchised stores. unaudited
2 Like-for-like System Sales growth in Euro, matching trading periods for the same stores between 1 January and 30 April 2022 and 1 January and 30 April 2023
3 Difference between Total System Sales growth and LFL system sales growth driven by 3rd store opening in June 2022
Currency exchange from Kuna to Euro at the beginning of 2023 contributed to weak January sales and order count. However, since February, Croatia has seen strong double digit LFL Sales growth. April YTD LFL Sales increased by 15.7% vs. corresponding periods, in line with April 2023 LFL Sales, up by 15.6% vs April 2022.
At the start of 2023, the Croatian business began utilising the benefits of group purchasing, which should visibly reduce direct costs in the medium-term. In June 2023, the 4th store in Croatia is expected to open in Zagreb.
Final Results for the year ended 2022
The Group expects to announce its final results for the year ended 31 December 2022 in the second half of June, which will include a webinar for investors.
Pre-Final 2022 year end results
As the Group is at the end of the financial audit for the year 2022, based on pre-final 2022 results it is expected that:
· Group Revenue will be between £35.6 - 35.9m
· Group Post-IFRS16 EBITDA will be between £1.6 - 1.8m
· Group Pre-IFRS16 EBITDA will be between £(1.3) - (1.5)m
EBITDA is slightly lower than previous expectations due to settlement of higher utilities costs for the year as well as accrual cost adjustments.
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.