08:00 Thu 19 Jul 2018
DP Poland PLC - H1 2018 Trading Update
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H1 2018 Trading Update
System Sales up 38%. Like-for-likes 13%. 77% of delivery sales ordered online.
· 38% increase in System Sales1 H1 2018 on H1 2017
· 13% like-for-like2 growth in System Sales H1 2018 on H1 2017
· 77% of delivery sales ordered online
· 59 stores in 26 towns and cities to-date
· 5 new stores opened in H1 2018
· 6 further leases already signed and a number of stores under construction
"System Sales grew 38% in the first half of the year as a result of double digit like-for-like sales growth and sales from non-like-for-like stores (those opened within the last 12 months). This robust growth was achieved in spite of unseasonably warm weather in May and June, warm weather tending to suppress home delivery sales. Balancing the warm weather, from the middle of June the World Cup supported sales as football fans ordered delivery pizza while watching matches on TV; the
The proportion of sales ordered online continues to grow and, at 77% of all delivery sales ordered online,
Healthy growth in
Following our record number of store openings in 2017 (19 stores opened) we are focused in 2018 on balancing store openings with growing the sales and EBITDA performance of our immature stores. We expect a store to take 12-18 months to reach breakeven and at the beginning of 2018 more than a third of our corporate store estate was less than 12 months old and two thirds less than 24 months old. As the proportion of immature stores reduces, relative to the overall estate, we expect to see a positive impact on Group EBITDA. In this context we have opened 5 corporate stores so far this year and have a pipeline of 6 store leases already signed, with a target of 10+ store openings by the year end, representing c.20% growth in the total store estate 2018 on 2017. As well as corporate store openings we are in discussions with both existing and potential sub-franchisees on opening more sub-franchised stores this year.
Our new commissary in Łodz is operating very effectively as it nears it first anniversary, producing growing volumes of dough and distributing growing volumes of ingredients to stores, alongside our
Gross profit margins in both store and commissary P&Ls were boosted in H1 by price deflation in the European cheese market, margin benefits that we share with our sub-franchisees. The price of cheese is material because it accounts for a significant proportion of the food cost of pizza.
We intend to announce our interims results for the six months ended
1 System Sales - total retail sales including sales from corporate and sub-franchised stores, unaudited.
2 Like-for-like growth in PLN, matching trading periods for the same stores between 1 January and
3 Source: Euromonitor 2018
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Enquiries:
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020 3393 6954 |
Adrian Trimmings / |
020 7418 8900 |
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