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DP Poland still on expansion path as pizza demand remains firm

Snapshot

  • Operates the Domino’s Pizza master franchise in the country
  • Poland one of the last large high-growth takeaway markets
  • Deal with Poland's largest takeaway delivery group, Pyszne
DP Poland PLC -

Quick facts: DP Poland PLC

Price: 7.45 GBX

AIM:DPP
Market: AIM
Market Cap: £18.89 m
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What it does

DP Poland PLC (LON:DPP) operates the Domino’s Pizza master franchise in the central European country.

Poland is one of the last large high-growth takeaway markets left in Europe.

Iwona Olbryś, general manager of its Polish subsidiary, was appointed chief executive with effect from 1 January.

Olbryś has “significant experience” in the Polish food and beverage sector, the company said, having previously served as general director of the Polish arm of competitor Telepizza.

 

How it is doing

Like-for-like (LFL) sales growth accelerated sharply in the second half of 2019, the company revealed in a trading update in February.

The group said system sales over the whole year rose 13% to 82mln zloty (PLN) from 72mln PLN the year before, while LFL sales were up 3% year-on-year thanks to 6% LFL growth in the second half.

Online orders made up 82% of deliveries, up from 77% in 2018.

Meanwhile, the number of outlets operating under the Domino’s Pizza brand rose to 69 from 63 the year before.

Cash in the bank at the end of the year had risen to £3.6mln from £2.0mln at the end of 2018, the company said.

 

What the CEO says: Iwona Olbryś

“2019 delivered continued expansion and growth in system sales during the year, notwithstanding the strong comparatives driven by our TV advertising in January and February 2018,” said Iwona Olbryś in February.

“While we continue to experience the impact of competition and labour inflation particularly, we expect to continue to see the positive effects of our well-received marketing campaign, our strong digital presence, and the strength of the Domino's reputation for quality and service.

“Poland's delivery market is expanding and DPP is well-placed to participate in this growth. Our confidence comes from our positioning in the market place with the Domino's brand and our experienced team offering to the market great products, service and price," she added.

 

Inflexion points

  • New CEO Olbrys overseas strong finish to 2019
  • Polish economy remains strong
  • Discussions with sub-franchisees ongoing over new stores to expand estate in the second half of 2019

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