Pizza Firm DP Eurasia Records Decline In Its Core Profit

By Dave Simpson
Pizza Firm DP Eurasia Records Decline In Its Core Profit

Pizza firm DP Eurasia, which runs the Domino's Pizza brand in Turkey and Russia, has recorded a decline of 44.1% in its 2020 core profit as it came under pressure due to coronavirus-related restrictions.

The London-listed company said that its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 69.6 million Turkish lira ($8.91 million) from 124.5 million lira a year ago.

DP Eurasia competes in Russia with a market leader Dodo and Papa John's. Domino is the second biggest player in the country with a share in pizza limited-service restaurants category of 7.6% at the end of 2020, while Papa John's holds 5.3%, according to market research provider Euromonitor International.

In Turkey, DP Eurasia is a market leader with a share in pizza category of approximately 60%.

The company fell to an adjusted net loss of 87.1 million lira from a profit of 2.9 million lira a year earlier as the pandemic limited its operations, though increased home delivery helped stem the losses.


"The Turkish business performed very strongly from a top line point of view, especially with record-breaking like-for-like growth rates in the second half of the year," CEO Aslan Saranga said.

The company said that it surpassed the 75% milestone for group online delivery system sales in 2020 as a percentage of total delivery system sales.

Forecasts For 2021

DP Eurasia confirmed its forecasts for 2021, saying that it expects like-for-like growth of 12%-15% for the year in Russia and 21%-25% in Turkey.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.