Full Year unaudited Trading Update for 2024

DP Poland PLC

("DP Poland", the "Company" or the "Group")

Full Year unaudited Trading Update for 2024

DP Poland PLC, the operator of Domino's Pizza stores and restaurants across Poland and Croatia, provides the following trading update for Q4 and the full year ended 31 December 2024.

DP Poland's Chief Executive Officer, Nils Gornall, said:  

"2024 has been another year of outstanding growth for DP Poland, reflecting our continued focus on execution and operational excellence. Despite a challenging macroeconomic environment and a high comparative base from a record 2023, we sustained strong sales growth while accelerating the rollout of new stores and expanding our franchising efforts.

In Poland, our operations achieved a third consecutive year of double-digit like-for-like (LFL) system sales growth, rising by 17.9%, driven by rising order volumes and new customer acquisition.  We  have sharpened our pricing strategy, enhanced customer value and achieved record-breaking levels in both sales and orders in the fourth quarter, positioning us well for sustained performance in 2025.

2024 saw the Group achieve consistent pre-IFRS16 EBITDA profitability in Poland for the first time, reflecting our disciplined cost management and focus on profitability. With an expanded and optimised store network, the initiation of a franchising model, and a debt-free balance sheet, we are confident in our ability to capitalise on the opportunities ahead."

Operational and Financial Highlights

·      The Group expects to report System Sales of £55.4m for FY 2024, driven by strong customer acquisition in both Poland and Croatia.

·      Poland Performance:

o  Total System Sales grew by 15.9% YoY, with Q4 growth of 8.2%.

o  LFL System Sales increased 17.9% YoY, with delivery LFL sales up 20.1%.

o  Average Weekly Order Count (AWOC) reached 827 for FY 2024, a 13.2% increase YoY.

o  12 stores were opened (eight new locations, four relocations), with 4 underperforming locations closed during the year. 4 additional stores which were due to be opened in Q4 2024 were delayed with 3 of these to be opened in January 2025. The year ended with 113 stores in Poland.

·      Croatia Performance:

o  Total System Sales increased by 40.2% YoY. 

o  LFL System Sales rose by 6.0% YoY, with AWOC remaining stable at over 1,200 for FY 2024.

·      Pre-IFRS 16 EBITDA for FY24 is expected to be c. £1.2m (2023: £0.0m) and post-IFRS16 EBITDA is expected to be £4.8m (2023: £3.5m). This is a significant improvement on the prior year, however, in H2 2024 profitability was impacted by the growing pressure on food (mainly cheese) and labour costs (in anticipation of the national minimal salary increase of 8.5% which applies from Jan 1 2025).

·      Cash at bank as at 31 December 2024 was £13.4m. The company repaid the outstanding debt to Malaccan in December 2024 and is currently debt-free.

·      Pressures on energy, rent and utilities costs eased in H2 2024 and inflation in Poland has declined to 3.9% by year-end. Revised pricing strategies have been introduced to the market in Q4 2024, keeping the Company's positioning unchanged versus competition and have proven effective in sustaining customer satisfaction while supporting profitability.

Strategic and Operational Progress

·      Franchise Transition: Initiated franchising model expansion in Poland, with the transfer of 5 stores to new franchise partners in 2024. Plans are in place to accelerate franchise expansion, the output of which are expected to be seen later in 2025.

·      Operational Efficiencies: Cost optimization initiatives, including fleet electrification, commissary upgrades, and supply chain improvements, have delivered material savings.

·      Customer Value Proposition: Despite price adjustments, customer satisfaction ratings remained strong, validating the quality and speed of service improvements.

·      Competition: In Q4 2024, the main players in the Polish Quick Service Restaurant business strengthened their promotional actions offering hot deals, which hindered volume growth for the Company in the quarter.

Trading Update 2024

Poland

¹   System Sales and System orders - total retail sales or orders including sales or orders from corporate and sub-franchised stores, unaudited.

²   Like-for-like System Sales growth in Polish Złoty, matching trading periods for the same stores or orders growth in units, matching trading periods for the same stores, unaudited.

Croatia

¹   System Sales and System orders - total retail sales or orders including sales or orders from corporate stores, unaudited.

²   Like-for-like System Sales growth in Euro, matching trading periods for the same stores or orders growth in units, matching trading periods for the same stores, unaudited.

Outlook

DP Poland enters 2025 with a clear strategy and expects continued LFL and system sales growth, supported by organic store openings (expected minimum of 15), expansion of our franchise partner network, and strategic price adjustments to mitigate labour cost inflation and food cost pressures.

We remain focused on delivering high-quality, value-for-money pizza with quick delivery times, supported by a highly motivated and capable team. With a strengthened financial position and a streamlined operational base, the business is well-positioned for further success.

The person responsible for arranging the release of this announcement on behalf of the Company is Nils Gornall, CEO.

Enquiries:

DP Poland plc   

Nils Gornall, CEO

Tel: +44 (0) 20 3393 6954

Email: [email protected] 

Singer Capital Markets (Nominated Adviser and Broker)

Shaun Dobson / Jen Boorer

Tel: +44 (0) 20 7496 3000

Notes for editors

About DP Poland plc

DP Poland has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland and Croatia. The group operates 116 stores and restaurants throughout cities and towns in Poland and Croatia.