Dp Poland Plc · LSE:DPP
Dp Poland — H1 2024 Earnings Presentation
20 slides from Dp Poland's earnings presentation, 2024
Slide 1: DP Poland PLC Half year results 2024
DP POLAND PLC Half year results 2024
Slide 2: Management: Today's Presenters
MANAGEMENT TODAY’S PRESENTERS Nils Gornall Edward Kacyrz Chief Executive Officer Chief Financial Officer Appointed August 2022 Appointed December 2022 • ”Dominoid” • Chartered Accountant with 20 years of experience. • 30 years of operational experience at Domino’s • Has held a number of financial, s
Slide 3: Strong H1 performance; momentum continuing
Strong H1 performance; momentum CONTINUING • Strong double-digit LFL sales and volume growth ✓ AWOC exceeding expectations DELIVERED IN ✓ Third consecutive year of 15% sales growth for H1 H1 2024 ✓ Record monthly sales in June 2024 ✓ High volume mentality paying off; H1 EBITDA1 up £1.0 milion YoY •
Slide 4: H1 2024 Financial Results
H1 2024 FINANCIAL resultS* Improvements evident in the numbers • Revenue growth continues with a record GROUP REVENUE AWOC (Poland) number of new customers and more frequent ordering, supported by improving ticket value • LFL Order count grew 18.8% YoY £26.5 million 825 • Average Weekly Order Count
Slide 5: Revenue growth driven by increased order counts
REVENUE GROWTH DRIVEN BY INCREASED ORDER COUNTS ORDER COUNT GROWTH SUPPORTINg IMPROVED UNIT COSTS Group Income Statement Unaudited Unaudited 6 months to 6 months to 1. Strong revenue growth (+25.9%) Currency: GBPm 30.06.2024 30.06.2023 % change • Strong Poland LFL revenue growth of 22.2% mainly driv
Slide 6: Healthy balance sheet
HEALTHY BALANCE SHEET Net cash of £12.7m (pre lease liabilities) Group Balance Sheet Unaudited Audited Currency: GBPm Jun24 Dec23 % change 1. Trade and other receivables increase mainly driven by Non-current assets 32.1 32.2 (0.3%) VAT receivables of Dominium S.A. (VAT has been Goodwill and intangib
Slide 7: High-volume mentality delivering results
HIGH-VOLUME MENTALITY delivering results Volume is the key to profitability Average weekly order count 1 000 900 800 700 600 500 400 JUL 22 JAN 21 JAN 22 JAN 24 JUL 21 DEC 22 JAN 23 JUL 23 JUL 24 NOV 21 NOV 22 NOV 23 APR 21 APR 22 FEB 21 AUG 21 SEP 21 DEC 21 AUG 22 SEP 22 APR 23 AUG 23 SEP 23 DEC 23
Slide 8: Where is sales growth coming from?
Where is sales growth coming from ? Three key drivers ARE ALL MAKING A POSITIVE CONTRIBUTION* New customers** Order frequency*** Ticket Value in PLN 500 4,8 CAGR 6.7% 60 CAGR 4.3% CAGR 19.8% 400 4,6 55 300 4,4 200 4,2 50 100 4 0 3,8 45 H1'2022 H1'2023 H1'2024 H1'2022 H1'2023 H1'2024 H1'2022 H1'2023
Slide 9: Improved customer satisfaction
IMPROVED CUSTOMER SATISFACTION • We are delivering a compelling value • We have improved our ‘customer’ touch proposition for our customers based on points, with continuous learnings from online fantastic quality pizza, delivered quickly, at a shopping (mobile app and desktop ordering compelling pri
Slide 10: Higher volumes driving improved profitability
Higher volumes driving improved profitability STORE PROFITABILITY STRONGLY CORRELATED WITH WEEKLY ORDER COUNTS Average weekly order counts continue to increase Volume drives improved profitability 23% 22% 37% 40% 56% 52% 16% 11% 46% Profitable Above 750 orders Break Even 39% 18% 650 - 750 orders 31%
Slide 11: Improved sales delivering a strong uplift in profitability
Improved sales delivering a strong uplift in profitability PROFITABLE STORES ARE THE KEY TO SUCCESSFUL FRANCHISING POLAND - STORE EBITDA DEVELOPMENT (MPLN & %) 1,5 8% 6% 1,0 4% 0,5 2% 0% 0,0 -2% - 0,5 -4% -6% - 1,0 -8% - 1,5 -10% JUL 22 JUL 23 NOV 22 NOV 23 JAN 22 APR 22 APR 23 FEB 22 AUG 22 SEP 22
Slide 12: Store openings and Polish estate over time
Store openings and Polish estate over time RAPID MOVE TOWARDS HIGH-POTENTIAL STORES IN GOOD LOCATIONS Store network development 2024 (Poland) 12-15 116-119 • Store closures since 2023 have strengthened our portfolio, removing locations unlikely to generate returns due to structural challenges (shopp
Slide 13: Franchise partners
Franchise partners Transformation towards franchise model has started Franchise Store network development (Poland & CROATIA) 18 1 ~16 16 1 3 14 4 12 10 8 4 2 0 2022 Y 202 Y 24 L 4 24 L 4 24 2024 Y • New head of franchising recruited 1st July 2024 • 4 corporate stores sold in Q3 2024 to franchisees,
Slide 14: Store number potential
Store number potential 14 Source: Public information available for Domino’s operators
Slide 15: Croatia
CROATIA STRONG PROFITABILITY FROM THE OUTSET CROATIA POPULATION: 4 million** CURRENT STORE COUNT: 5 stores • Croatian Like For Like (“LFL”) System Sales for H1 2024 up by POTENTIAL STORE COUNT: 50+ 6.1% year on year • Croatian Total System Sales for H1 2024 up by 69.1% year on year • 4 locations are
Slide 16: Target 200 stores by 2026 / 2027
Target 200 stores by 2026 / 2027 Transition to a franchised capital-light business model Polish AWOC No. of stores in Poland & Croatia +15-25% +15-25% 940 + ~200 830 126 2024 2025 2026 2024 2025 2026 • AWOC surpassed 800 in the first half of 2024, and with the recent impressive volume growth, we ant
Slide 17: H1 summary
H1 summary • Strong financial outcome (Pre-IFRS EBITDA H1’2024 up by £1.0 million) • Current growth in customer counts is positioning our stores for strong future success • We uphold a high volume mentality to store sales and strive to preserve our current like-for- like growth • Corporate store pro
Slide 18: Appendices
APPENDICES 18
Slide 19: Management Team & Board
MANAGEMENT TEAM & BOARD STRENGTHENED BOARD WITH PRIOR DOMINO’S EXPERIENCE EXECUTIVE DIRECTORS NON-EXECUTIVE DIRECTORS Nils Gornall - CEO David Wild - Chairman Przemyslaw Glebocki - NED Appointed August 2022 Appointed January 2023 Appointed January 2021 • 28 years of operational experience at Domino’
Slide 20: Our core market – Poland
Our core market – Poland ESTABLISHED BRAND WITH LARGE POTENTIAL TO SCALE POLAND POPULATION: 37.8 million • Large EU market with 37.8 million population, 21st globally in CURRENT STORE COUNT: 106 stores terms of GDP (PPP) POTENTIAL STORE COUNT: 500+ • Above average GDP growth* • 89% GDP growth (in PP