31st May 2023 11:34
(Alliance News) - DP Eurasia NV on Wednesday reported significantly higher sales in the first four months of 2023 compared to a year before, boosted by its growing business in Turkey.
The master franchisee for Domino's Pizza in Russia, Turkey, Azerbaijan and Georgia said sales climbed 19% to TRY1.77 billion, about GBP69.2 million, from TRY1.48 billion a year ago. Its total number of stores as of April 30 was 856, up 3.4% from 828 a year before, boosted by Domino's Pizza stores in Turkey climbing by 6.6% to 658 from 617. DP Eurasia said the Domino's Pizza store total in Turkey included 10 stores temporarily closed by the recent earthquake. In addition, the number of its Turkey-based coffee chain Coffy stores more than trebled to 40 from 12.
Meanwhile in Russia, the number of stores was reduced by 23% to 142 from 184. However, sales in Russia increased 2.8% to TRY291.1 million from TRY283.0 million. DP Eurasia said: "The group continues to evaluate its presence in Russia and, as previously announced is considering various options which may include a divestment of its Russian operations. Whilst work on a potential transaction is ongoing, there can be no certainty as to the outcome. In the meantime, the group continues to limit investment in Russia and remains focused on optimising the existing store coverage."
Sales in Turkey improved by 21% to TRY1.39 billion from TRY1.15 billion.
Looking ahead, DP Eurasia fully maintained its guidance. It continues to expect 35 to 40 new Domino's Pizza net store openings and 50 to 60 Coffy net store openings, amid an anticipated capital expenditure of TRY160 million.
"Franchisee demand for both Domino's Pizza and Coffy continues to be very healthy. We have a strong pipeline and remain confident that 2023 will be another solid year for network expansion. Consumer demand for Coffy stands very strong owing to its already proven sales performance. This demand, alongside our ambitious targets for 2023, will enable us to add further scale to the business," Chief Executive Officer Aslan Saranga said.
"Overall, we are pleased with the good start to the year and will continue to deliver on our targeted strategy in order to make the most of what continues to be a significant growth opportunity."
DP Eurasia shares were 4.1% higher at 51.00 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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