DP Poland's losses widen despite improved margins

Domino's Pizza operator and sub-franchiser DP Poland narrowed costs and delivered an improved performance from its older stores in the latter half of last year.

DP Poland raised total system sales 51% over the calendar year, but despite a "healthy" consumer demand throughout 2017, losses before interest, tax, depreciation and amortisation still widened 12.66% to Zl 1.78m due to costs associated with its opening of nineteen new stores during the period.

Like-for-like sales improved 17%, but overall, DPP posted a loss of Zl 2.63m, even as lower cheese prices and an easier recruitment process eased margin pressure.

DP Poland, which cut the tape on 19 new stores throughout 2017, has opened two more locations since the start of the new calendar year, taking its total estate up to 56 sites across the nation.

Online orders came in hot at 75% of total deliveries made, and DPP's first national television advertising campaign has already brought about "encouraging" results.

Since the period end, like-for-sales in January and February rose by 24% and 18%, respectively, as the AIM-quoted group, which plans to have 70 stores by the end of 2018, stated it felt optimistic of its future as it moved towards having 100 locations by 2020.

DPP returned a loss per share of 1.85p, narrowed slightly from the previous year's 1.93p figure.

As of 0840 GMT, shares had picked up 1.43% 35.50p.