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Pizza Firm DP Eurasia Records Decline In Its Core Profit

Published on Mar 25 2021 1:04 PM in Restaurant tagged: Domino's / DP Eurasia

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.

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