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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTGPGBCGUPWGMW

(END) Dow Jones Newswires

November 14, 2023 02:00 ET (07:00 GMT)

Dp Poland (LSE:DPP)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Dp Poland Charts.
Dp Poland (LSE:DPP)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Dp Poland Charts.