DP Poland (DPP), the operator of pizza stores and restaurants in Poland and Croatia, has reported a record first half of 2023, which saw like-for-like sales increase by 18% compared to the previous year, bolstered by an 11.3% growth in order count.
The company said the strong performance was the result of its focus on building what it calls a “High Volume Mentality” business, providing customers with high-quality pizzas delivered quickly to drive improved customer satisfaction and increased loyalty.
It also expanded its footprint by opening one new store and refurbishing four other ex-Dominium stores in Poland, bringing them up to Domino’s standards. It also opened its fourth store in Croatia, with plans to open two more in Poland and one more in Croatia by the end of the year.
It said that it had seen easing inflationary pressures in food and energy but was more cautious on staffing costs which it said had continued to rise – it’s now working on optimisation projects to mitigate these, following investments in an updated scooter fleet and IT systems.
Trading since the period end has been strong, with sales in Poland still rising in double digits, and Croatia bouncing back strongly from the transition of the currency from the Kuna to the Euro in January which saw temporarily weaker sales. New store openings in Croatia saw overall sales rise 44.5% in the period, while a move to group purchasing will reduce direct costs there.
Broker Singer described the update as “further evidence of the new CEO executing on the top-line strategy to ultimately make the stores profitable and thus attractive to potential franchisees”, leaving its 2023 forecasts unchanged.
This year, overall sales are expected to climb by a fifth to £42.9m, generating EBITDA 171% higher at £4.6m before delivering a maiden pre-tax profit in 2024.