Domino's Pizza master franchisee in Turkey and Russia posts double-digit sales growth
DP Eurasia N.V operates over 600 sites in the two countries.
The exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia recorded a 10.9% growth in like-for-like sales in Turkey, and an 18% growth in Russia.
DP Eurasia N.V. says total group system sales rose by 28.1%, showing strong performance in both countries. Turkish systems sales increased by 15.6% compared to the first half of 2017, while Russian system sales recorded a rise of 68.8% as of 30 June 2018.
Commenting on the update, DP Eurasia N.V. Chief Executive Officer, Aslan Saranga said: “We are very pleased with our performance for the first half of 2018. We were able to record double-digit like-for like growth in both of our main markets, despite the election period in Turkey.”
The results were bolstered by the significant growth of the company’s total online system sales, which jumped 64.5% from last year. Turkish online sales grew by 46.9%, while those in Russia soared by 106.9% compared to 2017. Online delivery system sales as a share of delivery system sales reached 59.3% for the period.
DP Eurasia N.V. also announced the successful opening of 79 new stores across the region in the past twelve months, 29 of which opened this year, bringing its total network of outlets to 672.
“The growing franchisee base and pipeline are encouraging in both markets. In the first half of 2018, which is historically a slower period for store openings, we have added 29 stores – 21 in Russia, seven in Turkey and one in Azerbaijan, which was in line with our expectations as our geographic expansion outside of Greater Moscow in Russia continues, where we have added Voronezh, Kazan, and Nizhny Novgorod among other cities,” Saranga said.
“We are happy to see that our advertising spend and capital expenditures on the digital front are paying off as the online portion of our business is continuing to increase. We are continuing with the deployment of the GPS Tracker in Turkey to optimize delivery effectiveness and expect to finish it in the second half of the year. Our project to unify the online ordering back-end systems across the Group is also on track to finish by the end of 2018.”
“The Board expects the full year Adjusted EBITDA for 2018 to be in line with expectations,” the executive added.
DP Eurasia N.V. is the largest pizza delivery company in Turkey and the third largest in Russia, operating 521 outlets in Turkey, 142 in Russia, six in Azerbaijan and three in Georgia.
(Photo courtesy: Domino's Pizza Turkey Facebook page)
