Domino's Pizza franchise still surging in Poland

Master Domino’s Pizza franchisee for Poland, DP Poland, posted its final results for the 2016 calendar year on Monday, with system sales up 62% year-on-year, or 27% on a like-for-like basis.

The AIM-traded firm reported 17 consecutive quarters of double digit like-for-like system sales growth.

Total corporate store EBITDA was up 76% at PLN 1.76m PLN, with the top three corporate stores averaging PLN 468k PLN EBITDA each in 2016, up from PLN 332k in 2015.

The company’s top store delivered PLN 536k EBITDA.

Commissary gross profit was up 155% at PLN 1.71m PLN.

Group EBITDA losses were marginally reduced at £1.58m for 2016, against £1.63m in 2015.

DP Poland said its second commissary was on plan to open in summer 2017, taking the total commissary capacity to around 150 stores.

The company confirmed it had 39 stores open to-date, with four stores already opened in 2017 and six stores currently under construction.

It was expecting to cross the 50 stores mark during 2017.

“Our accelerated store roll-out plan and strong like-for-like performance drove sales volume and improved contributions from corporate stores and commissary,” said chief executive Peter Shaw.

“We will continue to drive sales volume growth through 2017 and anticipate Group EBITDA losses further reduced for YE 2017.

“During 2017 we expect to cross the 50 store mark, which will be a key milestone for Domino's Pizza in Poland, as we extend our footprint and seek further economies of scale in this market of 38.5 million people.”