DP Poland PLC (AIM:DPP) has reported steady first-quarter trading as it pushes ahead with a shift to a franchise-led model following its acquisition of Pizzeria 105 and further sell-downs of corporate-owned stores.
Chief executive Nils Gornall described 2024 as a year of transition, with the company now pivoting from pure volume growth to prioritising value creation and margin improvement.
The group, which runs Domino’s pizza outlets across Poland and Croatia, said the Pizzeria 105 acquisition marked a turning point in its strategy.
The deal brought 76 experienced franchisees into the fold and fast-tracked its move toward a more scalable, capital-light business model.
DPP has since franchised out three more corporate stores to new partners, in line with its efforts to streamline overheads and strengthen recurring earnings.
The first quarter saw system sales in Poland rise 6.5% year-on-year to PLN 66.3 million. Like-for-like sales were up 2.9%, helped by a shift to higher average ticket values.
The company said that pricing initiatives were introduced to counter rising costs, particularly around labour while holding order volumes steady to support margin health. Order volumes were broadly flat, with total system orders edging down 0.1% and like-for-like orders falling 4.5%.
Alongside this rebalancing of the model, DP Poland opened four new corporate stores and renovated two others during the quarter, while closing two underperforming sites as part of a network optimisation plan.
In Croatia, the picture was more upbeat. System sales rose 12.7% year-on-year to €1 million, with order volumes also rising modestly despite similar pricing moves aimed at protecting margin.
The group said momentum in the Croatian market remained strong, with two more store openings planned in the near term.
The company said the integration of Pizzeria 105 is progressing well and remains central to its expansion plans in Poland. It expects the deal to have a transformational impact on the business in the coming quarters, broadening its footprint and growing its base of entrepreneurial partners.
Management reiterated full-year guidance for pre-IFRS 16 EBITDA of £1.2 million for 2024 and confirmed that final results will be announced in mid-May.
Separately, DP Poland also announced that Panmure Liberum has been appointed as its new nominated adviser, financial adviser and sole broker.