Dp Poland Plc · LSE:DPP
Dp Poland — H1 2018 Earnings Presentation
17 slides from Dp Poland's earnings presentation, Sep 18, 2018
Slide 1: Domino's Pizza Poland Interim Results
DOMINO’S PIZZA POLAND INTERIM RESULTS DP Poland PLC 18 September 2018
Slide 2: Content
CONTENT 1. Operational Highlights 2. Financial Highlights 3. Outlook DP Poland | Investor Presentation September 2018 2
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS DP Poland | Investor Presentation September 2018 3
Slide 4: Store Performance H1 2018
STORE PERFORMANCE H1 2018 • System Sales +38% to 37m PLN • System Sales like-for-like +15% (pre-split) • +13% post-split • +32% compound over 2 years • Immature stores showing strong growth • 23 consecutive quarters of double digit like-for-like growth to Q2 2018, pre-split • 5 new corporate stores
Slide 5: Average Weekly Orders
AVERAGE WEEKLY ORDERS Year on year like-for-like comparison of stores 2+ years old. 1,200 2015 2016 2017 1,100 2018 1,000 Orders per week 900 800 700 600 500 400 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
Slide 6: Delivery Sales Made Online
DELIVERY SALES MADE ONLINE Year on year like-for-like comparison of stores 2+ years old. 90% 2015 2016 2017 85% 2018 80% % of delivery sales 75% 70% 65% 60% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
Slide 7: Store Expansion
STORE EXPANSION Store openings • Store estate increased 11% 2018 to-date • 6 corporate stores • 27 towns and cities to-date • 20% expansion (65 stores) targeted YE 2018 • More splits going forward • adoption of pre-split like-for-likes DP Poland | Investor Presentation September 2018 7
Slide 8: Maturity Profile of Store Estate
MATURITY PROFILE OF STORE ESTATE 12 months to 30 June 2018 Excl. summer effect 1,600 1,400 Actual 1,200 Actual Weekly transactions 1,000 800 600 400 200 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 59 stores DP Poland | Investor Presentation September 2018 8
Slide 9: Sub-Franchising
SUB-FRANCHISING Expansion focus • 8 sub-franchisees operating 26 stores, including 2 under management contract • 44% of the store estate at the end of H1 • Access to capital is a barrier to existing sub-franchisees opening more stores • We are recruiting additional expertise to support and recruit s
Slide 10: Marketing
MARKETING • National television test in January and February 2018 • 2 x 2 week campaigns resulted in 30-40% LFL growth in System Sales • 77% delivery sales ordered online (73% in H1 2017) • some weeks mature stores achieve 90%+ • Continuous improvement of online interface • Bi-monthly campaigns • Fe
Slide 11: Commissary
COMMISSARY • Commissary gross profit +39% H1 2018 on H1 2017 • function of System Sales growth • sales royalties, food and non-food sales • NB focus on sub-franchisee profitability • Both commissaries are operating efficiently • Easing food prices in H1 2018, but inflationary pressures H2 2018 • Lar
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS DP Poland | Investor Presentation September 2018 12
Slide 13: System Sales Performance
SYSTEM SALES PERFORMANCE • System sales up 38% • but, below expectations • 32% compound like-for-like growth, 2 years H1 2018-17 • Continued growth in % online Change H1 2018 H1 2017 % System sales PLN 37,158,674 26,856,460 +38% L-F-L system sales (post-split) +13% +17% L-F-L system sales (pre-split
Slide 14: Group Performance
GROUP PERFORMANCE Constant exchange rate of PLN 4.8: £1 • Group Revenue tracking System Sales growth Group Revenue & Change H1 2018 H1 2017 EBITDA % • No sub-franchised stores opened (sold) H1 2018 Revenue PLN 30,687,305 21,845,267 +40% Revenue £ 6,394,787 4,552,236 +40% Group EBITDA (814,086) (742,
Slide 15: Cash
CASH • Cash reduced by 15% • Offset by some 2018 CAPEX and OPEX pre-paid in 2017 1 January 2018 Cash 30 June 2018 movement Cash in bank 4,505,911 (697,958) 3,807,953 Actual exchange rates as at31 Dec 2017 and 30 June 2018 DP Poland | Investor Presentation September 2018 15
Slide 16: Outlook
OUTLOOK DP Poland | Investor Presentation September 2018 16
Slide 17: Outlook
OUTLOOK • Store roll-out continues – expect estate expansion of 20% with at least 10 additional corporate stores • Positive discussions with both existing and potential sub-franchisees to open stores • expect sub-franchised estate to expand in 2019 • Food costs have eased from the highs of Q4 2017,