Domino’s Poland has reported like-for-like sales up 28% for the half year to 30 June and predicted ‘robust and uninterrupted’ growth, despite Brexit.
Total system sales for H1 were up 57% to £3.2m, while like-for-like sales in July and August were 28% up on the same two months last year.
Group EBITDA losses improved by 6% to £728,000 for the half-year, as the group continued to invest in commissary capacity and its real estate, distribution and area management teams.
The group opened six new stores, with three more cities coming on stream, taking it to a total of 29 stores in seven cities. Two new sub-franchisees signed on their first stores in two new cities, meaning the group now has four sub-franchise partners with 13 stores between them.
On Brexit, chief executive Peter Shaw said: “At this stage it is difficult to predict on a macro-economic basis, however it is clear that Poland is firmly set as a key member of the European Community, benefiting from very significant investment in infrastructure and innovation projects. In turn Poland contributes a robust growth economy with a highly qualified and motivated workforce and growing consumer demand for great value products.
“As distribution improves with more store openings and as our customer loyalty grows we believe that the growth of Domino’s Pizza in Poland over the coming years will remain robust and uninterrupted.”
On the H1 performance, he added: “Out of our six store openings so far this year I am delighted that 3 stores have been opened by two new sub-franchisees, in two new cities, taking the number of our sub-franchise partners to four. Domino’s Pizza is now available in seven Polish cities, with 29 stores to date, 16 corporately managed and 13 sub-franchised.
“We saw more than a doubling of both corporate store EBITDA and commissary gross profit in the first half of the year driven by rapid sales growth and improvements in food costs. The continuing improvement in Group EBITDA losses will accelerate as the growth in overheads necessary for rapid expansion become proportionately less significant to accelerating sales.”