Final results for the full year to 31 December 2018DP Poland PLC (“DP Poland or the “Company”, or the “Group”))
24% increase in System Sales, 18% growth in revenue, 66 stores open to-date
- 24% increase in System Sales* to 72m PLN 2018 (58m PLN 2017)
- 6% like-for-like** growth in System Sales 2018 on 2017, adjusting for delivery area splits***
- 18% growth in revenue to 60m PLN 2018 (50m PLN 2017)
- 85% increase in corporate store EBITDA
- 21% increase in commissary gross profit†
- Group EBITDA†† loss (£1.92m•) 2018, versus (£1.78m••) 2017
- Group loss for the period (£3.79 m•) 2018, versus (£2.63m••) 2017
- 77% of delivery System Sales ordered online 2018 (75% 2017)
- 9 new stores opened in 2018, 3 further opened in 2019 to-date
- 66 stores open to-date, across 30 towns and cities
Peter Shaw, Chief Executive of DP Poland said:
“In spite of a challenging second half to the year we achieved a 24% increase in System Sales and significant growth in both corporate store EBITDA and commissary gross profit in 2018. Understanding the external factors that negatively impacted sales growth, namely the unusually warm and dry weather and unprecedented levels of advertising spend by the two main delivery aggregators, has informed our sales and marketing response in 2019.
We have launched an innovative marketing campaign for 2019 featuring bespoke video and image content that will run throughout the year on digital, rather than traditional, channels, including YouTube, Facebook and Instagram. Alongside this campaign we are trialling a partnership with the largest delivery aggregator, Pyszne (Takeaway.com) and early signs of significant incremental sales look promising as we leverage Pyszne’s advertising spend.
The share placing completed at the end of February gives the business the requisite funds for further corporate store openings and for investment in sales and marketing.”
Notes to editor
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. There are currently 66 Domino’s Pizza stores, 42 corporately managed, 2 under management contract and 24 sub-franchised.
26 March 2019
* System Sales – total retail sales including sales from corporate and sub-franchised stores, unaudited.
** Like-for-like growth in PLN, matching trading periods for the same stores between 1 January and 31 December 2017 and 1 January and 31 December 2018.
*** When a store’s delivery area is split, by opening a second store in its original delivery area, a significant portion of the original store’s customer database is allocated to the new store, resulting in the original store losing sales. Calculating pre-split like-for-likes allows us to see sales growth by matched delivery areas, irrespective of the opening of new stores. Pre-split like-for-likes are a standard measure adopted by many major Domino’s Pizza master franchisees. Up to 31 December 2017 we had only split two delivery areas, out of 54 stores, hence not analysing pre-split like-for-likes before 2018. See note under Finance Director’s Review.
† Sales minus variable costs
†† Excluding non-cash items, non-recurring items and store pre-opening expenses
• Exchange rate average for 2018 £1: 4.8169
•• Exchange rate average for 2017 £1: 4.8950