LONDON (ShareCast) - (Sharecast News) - DP Poland, which holds the master franchise for the US-based Domino's Pizza brand in the Poland market, said system sales for the 2019 year were up 13% to PLN 81m (?16.09m) in an update on Friday.
The AIM-traded firm said there were currently 69 Domino's Pizza stores across 29 cities and towns in the country, with 43 of those corporately managed, three under management contracts and 23 being sub-franchised.

It said group performance was in line with its expectations for the year ended 31 December, with cash at bank standing at ?3.6m at period end, up from ?2.0m a year earlier.

DP Poland said its system sales growth included the six highest monthly levels of system sales for the company to date, and added that on a like-for-like basis, system sales were ahead 3% year-on-year.

There was a 1% fall in like-for-like system sales for the first half of 2019 on the first half of 2018, however, which the board said reflected the "strong" comparatives driven by television advertising in early 2018.

Like-for-like growth in system sales were up 6% in the second half of 2019 year-on-year, however.

During the period, a total of 82% of delivery sales were ordered online, up from 77% in 2018, while total store numbers increased to 69 stores from 63 during the year, satisfying the Domino's Pizza master franchise agreement requirement.

A total of six new corporate stores were opened during the period, while three corporate stores were acquired by two new sub-franchisees across Poland and two corporate stores were taken under management contract.

"2019 delivered continued expansion and growth in system sales during the year, notwithstanding the strong comparatives driven by our TV advertising in January and February 2018," said chief executive officer Iwona Olbryś.

"While we continue to experience the impact of competition and labour inflation particularly, we expect to continue to see the positive effects of our well-received marketing campaign, our strong digital presence, and the strength of the Domino's reputation for quality and service."

Olbryś said Poland's delivery market was expanding, adding that the company was well-placed to participate in the growth.

"Our confidence comes from our positioning in the market place with the Domino's brand and our experienced team offering to the market great products, service and price."

DP Poland said it would release its full-year results for 2019 on 31 March.

At 0955 GMT, shares in DP Poland were up 28.62% at 10.45p.

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