DP Poland H1 earnings grow, momentum continues post-period end

(Sharecast News) - Domino's Pizza master franchise DP Poland reported increased revenues and underlying earnings in the six months ended 30 June, supported by store network optimisation and the strategic acquisition of Pizzeria 105.

DP Poland said on Monday that group revenue had risen 8.7% year-on-year to �28.7m, while EBITDA climbed 22.5% to �2.5m. It also highlighted that overall group losses had narrowed, dropping by 54.6% year-on-year to �457,000.

System sales in Poland grew 4.9%, driven by new store openings and a 6.8% increase in average ticket value, despite subdued consumer sentiment early in the year, while Croatia delivered 7% growth, with delivery sales up 15.5%.

Cash at bank stood at �3.5m, down from �11.3m at year-end, reflecting DP Poland's �5.9m acquisition of Pizzeria 105 and �1.9m in store rollout and renovation costs.

Chief executive Nils Gornall said: "After a slower-than-expected start to H1 system sales in Poland, swift action by the team drove stronger performance in May and June, resulting in system sales growth of 5.6% year-on-year for the half. Momentum has continued post period end, with July delivering 4.8% growth and August accelerating to 13.0% growth year-on-year, driving a 5.9% increase in system sales year-to-date. In Croatia, we delivered a solid 7% increase in H1 system sales, positioning us well for planned network expansion in the second half of the year."

As of 1115 BST, DP Poland shares were up 4.35% at 9.0p.

Reporting by Iain Gilbert at Sharecast.com