24th Mar 2014 10:08
LONDON (Alliance News) - DP Poland PLC, the Domino's Pizza franchise in Poland, Monday said its pretax losses widened slightly in 2013, but reported a huge uptick in revenues driven by new store openings, and an increase in sales and orders both online and in store.
DP Poland, which has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland, said that revenues increased to GBP3.2 million in 2013, up from only GBP1.8 million a year earlier, driven by new store openings, and supported by increased brand awareness from advertising.
However the increase in marketing and promotion investment led to a slightly bigger pretax loss for the year of GBP3.3 million, compared with GBP3.1 million in 2012. It said advertising activity in the year included outdoor posters, subway digital posters, leaflets and broadcast advertising.
DP Poland said it saw a strong increase in system sales and e-commerce sales in 2013, with a total of 59% of its delivery sales made online as of January.
In 2013 it said that systems sales rose 66% to GBP3.1 million, up from GBP1.9 million a year earlier, while e-commerce sales surged to GBP875,589 compared with only GBP365,100 in 2012.
The group said its focus remains on building brand awareness, driving sales and reducing costs, as well as rolling-out new stores using its smaller-store format.
During the year, the group opened five new stores, including four corporate stores and its first sub- franchised store in Warsaw, Poland.
DP Poland said its new store format, which has a footprint 20% to 30% smaller than that of a typical Domino's store, has delivered considerable cost savings in store fit-out and operational expenditure, and is a roll-out strategy it will continue to focus on.
"We will shortly open 2 more stores in Warsaw and Krakow and will take the decision at the mid-year point on further openings, based on store performance. The board will resume a more aggressive store roll-out once the new S2 store format is proven," said Chief Executive Peter Shaw in a statement.
Shares in DP Poland were trading at 14.40 pence per share Monday morning, down 0.10 pence or 0.7%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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