TIDMDPEU
RNS Number : 5890C
DP Eurasia N.V
23 January 2018
For Immediate Release 23 January 2018
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the "Group")
Trading Update for the Year Ended 31 December 2017
Robust top line growth, online engagement continuing
momentum
For the year
ended 31 December
------------------------
2017 2016 Change
----------- ----------- -------
(in millions
of TRY, unless
otherwise indicated)
Number of stores 643 567 76
System Sales (1)
Turkey 645.7 565.5 14.2%
Russia 205.4 76.4 169.0%
Azerbaijan & Georgia 8.7 5.5 58.3%
Total 859.8 647.4 32.8%
Like-for-like System
Sales growth(2)
Turkey 10.0% 7.0%
Russia (based on
RUB) 28.9% 41.6%
Highlights
-- Group system sales growth of 32.8% driven by strong growth in both Russia and Turkey
o Turkish systems sales growth of 14.2%
o Russian system sales growth of 169.0% (95.0% based on RUB)
-- Group online system sales growth of 72.2% continued to
outpace the overall system sales growth
o Turkish online system sales growth of 41.5%
o Russian online system sales growth of 245.5% (150.4% based on
RUB)
-- Turkey and Russia like-for-like growth continues to be mainly
driven by the Group's online ordering platforms - online delivery
system sales as a share of delivery system sales reached 51.8% for
the period (2016: 42.4%)
-- 76 new stores were added in the year, bringing the total
number to 643, including the 500(th) Turkish store and the 100(th)
Russian store with Russia now expanding to cities outside of
Greater Moscow
-- Store roll out for the year in Russia was ahead of management
expectations, with 49 additions whilst Turkish openings were
broadly in line. There was a greater skew towards corporate
openings than anticipated to take advantage of opportunities in
Turkey and accelerate growth in Russia with an associated increase
in capital expenditure.
-- Russian commissary expansion completed extending capacity to 250 stores
-- The Board expects the full year Adjusted EBITDA(5) for 2017 to be in line with expectations.
Commenting on the update, Chief Executive Officer, Aslan Saranga
said:
"We are extremely pleased with our top line performance for 2017
in both of our main markets of Turkey and Russia. In Turkey, we
achieved double digit like-for-like growth, an acceleration from
the previous period, and in Russia it was another record breaking
year in terms of store openings. We added 49 stores to the estate,
including our first stores in St Petersburg and Krasnodar, our
first expansion outside of Greater Moscow in Russia.
Innovation, both in terms of technology and product, continues
to contribute to our growth. We revamped our smart phone apps in
Turkey and Russia in 2017, both of which subsequently received
industry awards. In Turkey, we have started rolling out our loyalty
program. In early 2018, we launched oven baked sandwiches
nationwide, after a successful test in the third quarter. In
Russia, we introduced our mosaic cake from our Turkish menu to our
Russian desert offering as well as the ultra-thin crust pizza
offering. Although early days, initial sales have been
encouraging.
The Board expects the full year Adjusted EBITDA(5) for 2017 to
be in line with expectations."
Enquiries
DP Eurasia N.V.
Selim Kender, Chief Strategy
Officer & Head of Investor Relations +90 212 280 9636
Buchanan (Financial Communications)
Richard Oldworth / Henry Harrison-Topham +44 20 7466 5000
/ Victoria Hayns / Madeleine dp@buchanan.uk.com
Seacombe
A conference call for investors and analysts will be held at
8.30am this morning, which will be accessible using the following
details:
Conference UK Toll: 020 3428 1542
call: UK Toll Free: 080 8237 0040
Participant PIN code: 53354649#
URL for international dial in numbers:
http://events.arkadin.com/ev/docs/FEL_Events_International_Access_List.pdf
A recording of the conference call will subsequently be
available at www.dpeurasia.com.
Notes to Editors
DP Eurasia N.V. is the exclusive master franchisee of the
Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia. The
Company was admitted to the premium listing segment of the Official
List of the Financial Conduct Authority and to trading on the main
market for listed securities of the London Stock Exchange plc on 3
July 2017. The Company (together with its subsidiaries, the
"Group") is the largest pizza delivery company in Turkey and the
third largest in Russia. The Group offers pizza delivery and
takeaway/ eat-in facilities at its 643 stores (514 in Turkey, 121
in Russia, five in Azerbaijan and three in Georgia as at 31
December 2017), and operates through its owned corporate stores
(37%) and franchised stores (63%). The Group maintains a strategic
balance between corporate and franchised stores, establishing
networks of corporate-owned stores in its most densely populated
areas to provide a development platform upon which to promote best
practice and maximise profitability. The Group has adapted the
Domino's Pizza globally proven business model to its local
markets.
Performance Review
Store As at 31 December
count
----------------------------------------------------------------
2017 2016
Corporate Franchised Total Corporate Franchised Total
Turkey 142 372 514 144 344 488
Russia 99 22 121 68 4 72
Azerbaijan - 5 5 - 4 4
Georgia - 3 3 - 3 3
Total 241 402 643 212 355 567
Delivery channel mix and online like-for-like growth
The following table shows the Group's delivery system sales,
broken down by ordering channel and by the Group's two largest
countries in which it operates, as a percentage of delivery system
sales for the periods ended 31 December 2017 and 2016:
For the period ended 31
December
--------------------------------------------------
2017 2016
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
Store 48.0% 33.3% 45.0% 53.0% 47.5% 52.3%
Group's
online
Online platform 25.1% 66.7% 34.5% 21.1% 52.5% 24.8%
Aggregator 22.7% - 17.3% 19.9% - 17.5%
Total online 47.8% 66.7% 51.8% 41.0% 52.5% 42.4%
Call
centre 4.2% - 3.2% 6.0% - 5.3%
Total(3) 100% 100% 100% 100% 100% 100%
The following table shows the Group's online like-for-like
growth(2) , broken down by the Group's two largest countries in
which it operates, for the periods ended 31 December 2017 and
2016:
For the period
ended 31 December
---------------------
2017 2016
--------- ----------
Group online like-for-like
growth(4)
Online system sales
Turkey 37.7% 18.8%
Russia (based on
RUB) 78.5% 140.7%
Notes
(1) System sales are sales generated by the Group's corporate
and franchised stores to external customers and do not represent
revenue of the Group.
(2) Like-for-like growth is a comparison of sales between two
periods that compares system sales of existing system stores. The
Group's system stores that are included in like-for-like system
sales comparisons are those the Group considers to be mature
operations. The Group considers mature stores to be those stores
that have operated for at least 52 weeks preceding the beginning of
the first month of the period used in the like-for-like comparisons
for a certain reporting period, assuming the relevant system store
has not subsequently closed or been "split" (which involves the
Group opening an additional store within the same map of an
existing store or in an overlapping area).
(3) Delivery system sales are system sales of the Group
generated through the Group's delivery distribution channel.
(4) Online system sales are system sales of the Group generated
through its online ordering channel.
(5) Adjusted EBITDA is not defined by IFRS. Adjusted EBITDA
excludes income and expenses which are not part of the
normal course of business and are non-recurring items,
consisting of restructuring costs and IPO-related expenses and
share based incentives. Management uses this measurement basis to
focus on core trading activities of the business segments and to
assist it in evaluating underlying business performance
Appendices
Exchange Rates
Year ended 31 December
--------------------------------------
2017 2016
------------------ ------------------
Period Period Period Period
Currency End Average End Average
------- --------- ------- ---------
EUR/TRY 4.516 4.116 3.710 3.338
RUB/TRY 0.065 0.062 0.057 0.045
EUR/RUB 68.867 65.901 63.811 74.231
Delivery - Take away / Eat in mix
For the period ended 31
December
--------------------------------------------------
2017 2016
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
Delivery 63.0% 60.2% 62.2% 62.6% 62.1% 62.6%
Take away
/ Eat in 37.0% 39.8% 37.8% 37.4% 37.9% 37.4%
Total(2) 100% 100% 100% 100% 100% 100%
Forward looking statements
This press release includes forward-looking statements which
involve known and unknown risks and uncertainties, many of which
are beyond the Group's control and all of which are based on the
Directors' current beliefs and expectations about future events.
They appear in a number of places throughout this press release and
include all matters that are not historical facts and include
predictions, statements regarding the intentions, beliefs or
current expectations of the Directors or the Group concerning,
among other things, the results of operations, financial condition,
prospects, growth and strategies of the Group and the industry in
which it operates.
No assurance can be given that such future results will be
achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements.
Forward-looking statements contained in this press release speak
only as of the date of this press release. The Company and the
Directors expressly disclaim any obligation or undertaking to
update these forward-looking statements contained in this press
release to reflect any change in their expectations or any change
in events, conditions, or circumstances on which such statements
are based.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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