Interim Results for the half year to 30 June 2019DP Poland PLC (“DP Poland or the “Company”)
System sales up 10%, like-for-likes returning positive from March and more sub-franchisees in place Appointment of General Manager in Poland
- 10% increase in System Sales1 to 41m PLN H1 2019 (37m PLN H1 2018)
- including the three highest monthly levels of System Sales for the Group to date
- -1% like-for-like2 growth in System Sales H1 2019 on H1 2018, reflecting the strong comparatives driven by TV advertising in January and February 2018
- Latest like-for-like System Sales: July +1% and August +8%
- System Sales growth continuing in September to date
- Pre-IFRS 16 Group EBITDA5 losses increased, impacted as expected by investment in operations and weaker commissary performance
- Net cash of £5.1m as at 30 June 2019 (£2.0m as at 31 December 2018)
- Group performance in line with management expectations for 2019
- 80% of delivery sales ordered online H1 2019 (77% H1 2018)
- 4 new stores opened in H1 2019, 2 further opened since the period end
- 69 stores open to-date, across 29 towns and cities
- 2 further leases signed
- 3 corporate stores acquired by 2 new sub-franchisees across Poland
- 3 corporate stores taken under management contract by 1 existing sub-franchisee
- Appointment of Iwona Olbrys as General Manager in Poland joining from Telepizza Poland; an experienced Food & Beverage executive
- Positive interaction with aggregator Pyzszne
Nick Donaldson, non-executive Chairman, said:
“DP Poland delivered continued expansion and growth in System Sales across both corporate stores and commissary during the first half of the year, notwithstanding the strong comparatives driven by TV advertising in January and February 2018. March to June 2019 saw positive growth in both like-for-like System Sales and like-for-like order count. Pleasingly, System Sales growth has continued in July, August and September.
We have expanded the store estate to 69 stores. We intend to continue to increase the number of stores through corporate and sub-franchise openings.
We are delighted to announce the appointment of Iwona Olbrys as our new General Manager in Poland, succeeding Peter Shaw. Iwona, who is based in Warsaw, has significant experience in the Food & Beverage sector in Poland, having been the general director of Telepizza Poland – a business with 93 stores, both company owned and sub-franchised – since 2011. This appointment is in line with our strategy, announced in February, to focus our resources in Poland.
The recent headwinds affecting the Polish food delivery sector, including food and labour costs, and the impact of the aggregators on the sector, continue. However we remain confident that, underpinned by our well-invested infrastructure and world-renowned service and products, Domino’s Pizza in Poland will continue to grow in this environment. The strong fundamentals in the Polish economy and continued expansion of the delivery market support the growing opportunity for the Domino’s proposition in Poland.”
25 September 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 30 June 2018 and 1 January and 30 June 2019.
- 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.
- Sales minus variable costs
- Excluding non-cash items, non-recurring items and store pre-opening expenses.
- Source: PizzaPortal
- Non-like-for-like stores that are less than 12 months old, with no matching trading periods year on year.
- Exchange rate average for H1 2019 £1: 4.9158
- Exchange rate average for H1 2018 £1: 4.7988
- 020 3393 6954DP Poland PLC
- Nick Donaldson, non-executive Chairman
- 020 7418 8900 Peel Hunt
- Adrian Trimmings/George Sellar
A full copy of the interim results can be downloaded below
Notes to editors:
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 69 Domino’s Pizza stores, 42 corporately managed (4 of which are under management contract) and 27 sub-franchised.