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.