Domino’s Pizza Poland has reported a 43% rise in like-for-like sales at its first 13 sites in the country in 2013, which the company described as a period of “substantial progress” for the group.
The group, which is set to open two more stores before the summer, saw like-for-like EBITDA grow 52%, with like-for-like gross profit up 46% and like-for-like order count up 39%.
Revenue grew from £1.8m to £3.2m as it opened five stores in the period, taking its estate to 16 corporate units and one sub-franchise premises in Warsaw, in addition to two corporate stores in Krakow. Group EBITDA grew from £2.7m to £2.8m, with growth impacted by an additional marketing investment of £778,275, against £485,439 in 2012.
Loss before tax and share based payments was £3.2m (2012: £3m).
DP Poland’s first sub-franchised store opened in October and achieved EBITDA breakeven in three of the first four months. The company said it expects sub-franchising to play a “central role in the longer term roll-out of stores in Poland”.
Regarding its future openings, the company stated: “We currently have one store constructed, due to open shortly, and one additional store signed and planned to open before the summer. We will take a view at mid-year on further store openings for 2014, based on store performance.”
DP Poland said on-line sales are becoming increasingly important, with delivery on-line sales at 59% in January 2014, and it has also reached 50,000 Facebook fans.
Peter Shaw, chief executive of DP Poland, said: “2013 has been a year of substantial progress for the Company as we continue to prove our business model in Poland. We have grown our estate, announced our first sub-franchisee and opened our first stores outside of Warsaw. As sales volumes have grown we have also focussed on growing gross profit margin through improved food costs and we have devised a new store format that delivers significant cost reductions both in fit-out and rent.
”Our immediate focus remains on building brand awareness, driving sales, reducing costs and proving the business model. Our roll-out strategy for 2014 will be adjusted accordingly. 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.”