Sign up Australia
Proactive Investors - Run By Investors For Investors

DP Eurasia on track to hit forecasts in 2018 as Russia and Turkey continue to gobble up pizza

The Domino's franchisee recorded double-digit growth in its two key markets in the first half, despite elections taking place in Turkey
domino's workers
DP Eurasia is the master franchisee of Domino’s in Turkey, Russia, Azerbaijan and Georgia

Russians can’t get enough Domino’s pizzas if the latest numbers from DP Eurasia N.V. (LON:DPEU) are anything to go by.

The £250mln company is the master franchisee of the popular pizza brand in Russia, as well as in Turkey, Azerbaijan and Georgia.

Strong growth in all regions

Sales were strong across all of its territories, but Russia was the standout performer. Sales in the eastern European country jumped 68.8% to 152.7mln Turkish lira (₺) (£23.9mln) in the first half of the year (H1 17: ₺90.5mln).

On a like-for-like basis, which excludes the impact of store openings and closures, Russian sales climbed 18% in the opening six months.

In Turkey, DP Eurasia’s biggest market in terms of sales, revenue climbed 15.6% year-on-year to ₺351.6mln (H1 17: 304.1mln).

Azerbaijan and Georgia make up a smaller slice of the pie, but growth was also strong there with sales soaring almost 60% to ₺6.1mln (H1 17: ₺3.9mln).

Total group sales jumped 28.1% to ₺510.4mln (H1 17: ₺398.5mln), boosted by the opening of 79 new stores compared to the same period last year.

Online ordering continues to prove a popular option, with group online system sales rising 64.5% in the half. In Russia and Turkey, DP Eurasia’s two largest markets, just shy of 60% of all orders are placed online.

On track to hit forecasts

“We are very pleased with our performance for the first half of 2018,” said chief executive Aslan Saranga.

“We were able to record double-digit like-for-like growth in both of our main markets, despite the election period in Turkey.”

He added: “We are happy to see that our advertising spend and capital expenditures on the digital front are paying off as the online portion of our business is continuing to increase.”

DP Eurasia expects full-year adjusted underlying earnings to be in line with expectations.

Shares rose 0.5% to 178p in early deals on Friday.

View full DPEU profile View Profile

DP Eurasia Timeline

Related Articles

cake
April 17 2018
The group's major shareholders have staunchly supported the business while the AIM-listed group sorts out its financial position

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use