23rd Nov 2022 14:20
(Alliance News) - DP Eurasia N.V on Wednesday said revenue jumped in the 10 months to October, driven by a surge in sales in the group's stores in Turkey.
DP Eurasia is an Amsterdam-based master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia.
DP Eurasia's store revenue increased 75% to TRY3.32 billion, about GBP149 million, in the first 10 months of 2022. This is up from TRY1.90 billion in 2021.
The company's stores in Turkey reported the highest revenue overall at TRY2.31 billion, up 67% from TRY1.38 billion the year before, after the country's high price inflation was stripped out.
This is followed by a 87% rise in sales in Russia to TRY893 million from TRY478 million. However, like-for-like sales in Russia by the end of October were down by 7.1%.
"In Russia, we continue to operate in a difficult geo-political and economic environment," DP Eurasia said, referring to Russia's invasion of Ukraine and consequent sanctions on Russia by Western countries. "As a result, our LfL performance by the end of October was negative."
DP Eurasia has not followed other international companies in announcing plans to exit the country.
"In Russia, we remain focused on store network optimization and efficiency," DP Eurasia said. "This business will continue to operate in a self-sustained manner."
In its other operations, DP Eurasia's own-brand Coffy store sales multiplied to TRY37 million in the recent period from TRY4 million a year ago. Store sales in Georgia grew to TRY28 million from TRY10 million and those in Azerbaijan increased to TRY53 million from TRY25 million.
"Trading has continued with solid momentum, and we remain dedicated to our clear and targeted action plan that focuses on three areas - strategic pricing & product innovation, continued digital innovation, and operational efficiencies for sustainable profitability," Chief Executive Officer Aslan Saranga said.
DP Eurasia shares were up 2.7% to 41.30 pence on Wednesday afternoon in London.
By Jaskeet Briah; [email protected]
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