DP Poland PLC (LON:DPP) saw its shares jump higher on Friday after the firm, which operates the Domino’s Pizza brand in Poland, revealed that like-for-like (LFL) sales growth accelerated sharply in the second half of 2019.
In a trading update, the group said system sales over the whole year rose 13% to 82mln zloty (PLN) from 72mln PLN in 2018, while LFL sales were up 3% year-on-year, with the second half of 2019 seeing LFL growth of 6%.
The company said that 82% of delivery orders are now received online, 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.
It noted that cash in the bank at the end of the year had risen to £3.6mln from £2.0mln at the end of 2018.
Continued expansion and growth
"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, the chief executive (CEO) of DP Poland.
“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," the CEO added.
In lunchtime trading, DP Poland shares were up 20% to 9.75p.
In a note to clients, analysts at 'house' broker Peel Hunt repeated a 'buy' rating and 15p target price on the stock.
-- Adds share price, Peel Hunt target --