DP Poland Plc (LON:DPP), the franchise holder for Domino’s pizzas in the central European country, has launched its first national TV ads following another six months of rapid sales growth.
Total revenue in 2017 rose by 51% to 58mln PLN (£12.2mln) from 39mln PLN, with like-for-like growth of 17%.
WATCH: DP Poland seeing encouraging early results from first TV ad campaign
It was the 21st consecutive quarter of double-digit like-for-like sales growth, with 75% of delivery sales ordered online.
Peter Shaw, chief executive, said national television advertising started in January this year and early results were encouraging.
DP Poland now has 55 stores in the country, compared to 35 a year earlier, of which 29 are corporately managed, 2 under management contract and 24 sub-franchised.
A second commissary in Łodz is fully operational and performing well, the company added.
READ: DP Poland momentum showing no signs of stopping as first half sales jump
The performance reflected a combination of robust like-for-likes and 19 store openings, said Shaw.
“While we experienced increased pressures in costs of sale, both labour and food, we expect these pressures to ease through 2018.
"With new or very young stores the aim is to build the customer base as much as possible as quickly as possible."
DP Poland opened 19 stores in 2017, which needed hard promotion to build to build their presence.
On average, it takes between 10-12 months for a new store to break even, so out of 54 stores there is a very high immature proportion, Shaw said.
“As we grow, we will still open new stores but those already opened will need less promotion.
“Right now, it is about getting sales in and customers onto the database so we can build the business ready for when we can deliver serious EBITDA [underlying profit].”
Poland's delivery market is expanding and we are taking a lead in that expansion, he added.
Shares were unchanged at 40p.
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