DP Eurasia (DPEU) is focusing on expansion. Management thinks there's the potential for 2,400 Domino’s stores across the company's main eastern European markets based on a review conducted by the Boston Consulting Group. Over the half year the master franchisee of the popular pizza brand reached a total of 602 locations, 490 of which are in Turkey, 104 in Russia, five in Azerbaijan and three in Georgia. DP Eurasia came to market in July this year at an offer price of 200p a share, with an intention to use the proceeds from the float to expand – primarily in Russia – and invest in innovation.
In its first set of results as a listed company, DP Eurasia reported first-half adjusted cash profit up by more than a quarter to ₺39.4m (£8.3m), aided by an improvement in sales at its stores, which increased by 29 per cent to ₺399m (including company-owned stores and franchisees).
This sales growth was most pronounced in Russia, where revenue from stores there tripled to ₺90.5m thanks to more customers opting to order online, locals becoming more familiar with the Domino’s brand, and faster service compared with its competitors. Store sales in Turkey, its largest region, saw a 10 per cent improvement on the previous year to ₺304m.
| DP EURASIA (DPEU) | ||||
| ORD PRICE: | 183p | MARKET VALUE: | £266m | |
| TOUCH: | 180-183p | 12-MONTH HIGH: | 213p | LOW: 155p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 37 kuruş* | NET DEBT: | ₺171m** | |
| Half-year to 30 June | Turnover (₺m) | Pre-tax profit (₺m) | Earnings per share (₺) | Dividend per share (kuruş) |
| 2016 | 209 | 9.1 | 1.5 | nil |
| 2017 | 290 | 1.7 | -0.5 | nil |
| % change | +38 | -82 | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of ₺77.9m, or 54 kuruş per share £1=₺4.71 **Excludes long-term deposit for loan guarantee | ||||
