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DP Poland eyes bigger sub-franchise slice after first-half sales grow

The group, which operates the Domino's Pizza brand in Poland, said the rise of delivery apps such as UberEats could help it break into new regions

DP Poland PLC - DP Poland reports higher sales as it targets sub-franchise expansion
The group currently has 69 stores in Poland

DP Poland PLC (LON:DPP) served up better system sales in the first half of the year and is looking to continue expanding its sub-franchise estate in the second half.

For the six months ended 30 June, the group, which operates the Domino’s Pizza brand in Poland, reported sales of £8.3mln, 10% higher than the prior year, with the number of orders originating online rising to 80% from 77%.

READ: DP Poland returns to like-for-like sales growth

Like-for-like sales growth dipped slightly by 1% in the period, while pre-tax losses were flat at around £1.8mln.

The figures were bang in line with a trading update issued in July, which had highlighted that despite “strong comparatives” denting LFL sales in January and February, growth had recovered in later months with LFLs in July and August rising 1% and 8% respectively.

Looking ahead, the company said it is in discussions with existing and potential sub-franchisees to open new stores and expected the number to rise in the second half alongside planned growth across its entire store estate, which grew 10% in the first half to 69 locations.

The firm added that the rise of delivery aggregators in Poland such as UberEats, Pizza Portal and Pyzszne would be “particularly helpful” in regions where the Domino’s brand was less well known.

Nick Donaldson, DP’s non-executive chairman, said that despite “recent headwinds” in the sector, including food and labour costs, the group was “confident” that it would continue to grow in the market.

The company also announced the appointment of a new general manager in Poland, Iwona Olbrys, who joined the firm from rival Polish pizza firm Telepizza.

In early trading on Tuesday, DP Poland’s shares were 6.4% lower at 5.5p.

Quick facts: DP Poland PLC

Price: 7.625 GBX

AIM:DPP
Market: AIM
Market Cap: £19.33 m
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DP Poland take away tasty figures from 2018

Peter Shaw, CEO of DP Poland Plc (LON:DPP), tells Proactive London's Polly Middlehurst how sales have grown 'substantially' in the year-to-date, however like-for-like sales growth have continued to see softening into the fourth quarter. Peter explains how that growth has been driven and which...

on 13/12/18

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