27th Mar 2018 13:22
LONDON (Alliance News) - DP Poland PLC reported on Tuesday a 21st quarter in a row of double-digit like-for-like sales growth though its pretax loss widened slightly in 2017 as it pressed ahead with new store openings.
The company, which operates as the Domino's Pizza brand master franchisee in Poland, reported a pretax loss for 2017 of GBP2.6 million, compared to GBP2.5 million in 2016. Revenue increased to GBP10.4 million from GBP7.6 million.
DP Poland's loss before interest, tax, depreciation, and amortisation widened to GBP1.8 million from GBP1.6 million at actual exchange rates, as new stores are initially loss-making and food and labour cost pressures hit margins.
During the year DP Poland opened 19 stores, bringing the total number to 54. With two more opened since the end of 2017, it now has 56 Domino's Pizza stores, 32 of which are corporate.
Total system sales, which includes sales from corporate and sub-franchised stores, increased 51% to PLN58.0 million or GBP12.1 million, and there was a 17% like-for-like increase in system sales in 2017 on the previous year.
In the fourth quarter of 2017, DP Poland registered its 21st quarter of double-digit like-for-like sales growth in a row, it said. Mature stores, it said, are beating expectations in terms of both revenue and Ebitda.
So far, year-on-year like-for-like sales growth in January was 24% and February 18%. DP Poland said it has seen a softening in food cost inflation, and the price of cheese is expected to keep falling in 2018.
DP Poland advertised nationally for the first time in January and February, and it said the sales response was strong.
DP Poland shares were down 1.4% on Tuesday at a price of 34.50 pence each.
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