DP Poland PLC – Final Results

DP Poland PLC – Final Results

System Sales up 13%. Pre-IFRS 16 Revenue up 16%. Like-for-like System Sales up 3% for the year, up 6% in H2. Delivery sales ordered online up 6%. Number of stores up 10%.

Financial highlights:

•    Cash at bank of £3.6m as at 31 December 2019 (£2.0m as at 31 December 2018)

•     Pre-IFRS Revenue up 16% to 69m PLN 2019 (60m PLN 2018)

·    System Sales1 up 13% to 81m PLN 2019 (72m PLN 2018)

•     Including 6 highest monthly levels of System Sales for the Group to date

•     +3% like-for-like2 growth in System Sales 2019 on 2018

•     -1% like-for-like growth in System Sales H1 2019 on H1 2018, reflecting the strong comparatives driven by TV advertising in January and February 2018

•     +6% like-for-like growth in System Sales H2 2019 on H2 2018

·    Pre-IFRS 16 Group EBITDA3 losses improved by 5% (£1.8m) in 2019 vs (£1.9m) in 2018

·    Pre-IFRS 16 Group loss for the period improved by 10% (£3.4m) in 2019 vs (£3.8m) in 2018

·    Group performance in line with management expectations for 2019

Operational highlights:

•     82% of delivery sales ordered online (77% 2018)

•     Store numbers in 2019 increased from 63 to 69 stores, satisfying the Domino’s Pizza Master Franchise Agreement requirement

•     6 new corporate stores opened

•     3 corporate stores acquired by 2 new sub-franchisees across Poland

•     2 corporate stores taken under management contract

•     Positive interaction with food aggregator Pyszne.pl (takeaway.com)

Iwona Olbryś, Chief Executive of DP Poland said:

“2019 delivered continued expansion and growth in System Sales during the year, notwithstanding the strong comparatives driven by our TV advertising in January and February 2018.

The Coronavirus crisis presents our industry – and business in general in Poland and around the world – with some major obstacles. Nevertheless, I believe that the Domino’s brand, and its reputation for quality of product and service, put us in a good position. While dine-in restaurants in Poland are permitted to reopen this week, we continue to deliver to our customers delicious, hot pizzas, typically within 25 minutes from order. Our focus on delivery/collection and online ordering positions DP Poland well in the current environment. However, with so much uncertainty prevailing, at the present time we can give no guidance on the outlook for DP Poland in the current financial year.

Our customers order their pizzas increasingly on our digital platforms, and pay for their orders on that platform too. In Poland we believe we are ‘best in class’ on this front.

In light of the Coronavirus concerns, we now offer contact free delivery and contact free carry out. We continue to create new initiatives and seek to adapt to the ‘new world’. Meanwhile, one consequence of the crisis has been to bring about some reduction in our food and labour costs.

Whilst the macro outlook remains uncertain, in this new world I believe that DP Poland holds an important position in the Polish F&B industry and good prospects.”

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