DP Poland PLC Trading Update (2971T)
November 14 2023 - 1:00AM
UK Regulatory
TIDMDPP
RNS Number : 2971T
DP Poland PLC
14 November 2023
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 GBP 2.4 m as at 30 September 2023 (GBP2.7m 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 sales(1) 53.1 15.4% 55.0 14.4% 55.0 7.1% 22.2 32.7%
LFL System sales(2) 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 orders(1) 1.0 4.0% 1.0 12.2% 1.0 9.1% 0.4 33.4%
LFL System orders(2) 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) YTD YTD % change
October 2022 October 2023 vs. 2022
Total System Sales(1) 1.4 1.9 34.4%
LFL System Sales(2) 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 3(rd) store opening in June 2022, 4(th)
store opening in June 2023 and a 5(th) 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 5(th) 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.
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END
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