Dino Polska S.A. in Q1 2018: growing size of business and 41% top line growth

Wednesday, 16 May, 2018
At the end of March 2018, the Dino network numbered 800 stores, 161 more than in the corresponding period of last year. 25 new stores were opened in Q1 2018. Q1 2018 also saw greater footfall and higher basket value in Dino stores.
In Q1 2018, Dino Polska’s consolidated revenues totaled PLN 1,286 million and were PLN 375 million (41.2%) higher than a year ago. Significant top line improvement is the outcome of Dino’s store network roll-out to open new stores and growing revenues in the existing store network (like for like, LfL). LfL sales growth in Q1 2018 was 20.3%, compared to the corresponding period of Q1 2017 when it was 12.6%. The greater amount of customer shopping related to Easter was a material factor contributing to the high level of LFL sales in Q1 2018. In 2017 this effect was visible in Q2. In conjunction with its growing business size, the Dino Group has posted higher business profitability that is steadily climbing. The EBITDA margin in Q1 2018 was 8.1%, i.e. 0.6 percentage points above the corresponding period of 2017.

Dino Polska continues to pursue rapid network expansion by opening new stores and looking for new sites to continue its expansion. At the end of Q1 2018 the Group had 800 stores, signifying 25 store openings in the first three months of 2018. The selling area in the Dino stores at the end of March 2018 had grown 26% yoy to 305.4 thousand square meters. In accordance with its strategy, Dino Polska plans to exceed 1,200 stores by the end of 2020.

The fourth distribution center currently under construction in Rzeszotary in Lower Silesia will underpin the network’s further expansion. This 45,000 square meter distribution center will launch operations in Q3 2018. Ultimately, roughly 300 people will be employed at this distribution center, with approximately 180 people being employed to do transport-related work.

“At the outset of the year we kicked off the construction of a new distribution center. This is an important investment for us as it will help the Dino stores reach more communities in western Poland. Today, our network numbers more than 800 stores. The ongoing growth in business size and catering to the growing number of stores call for more investments. That is why the decision was made to build a new distribution center in Lower Silesia, which is the second largest region measured by the number of Dino stores just after Wielkopolska”, says Szymon Piduch – President of the Management Board of Dino Polska S.A.

The growing retail grocery market in Poland and the favorable macroeconomic environment are conducive to the further expansion of the Dino network.

The attractive labor market, growing income enhancing Poles’ purchasing power and consumer price growth are acting as a boost to the overall sector and Dino’s segment – consisting of mid-sized supermarkets located close to customers’ places of residence.

According to the National Bank of Poland (forecast at the end of March 2018), Poland’s economic growth in 2018 will be 4.2% and in 2019 it will be 3.8%. The European Commission is forecasting growth in the Polish economy at the level of 4.3% in 2018 and 3.7% in 2019. The EC’s report suggests that private consumption will be the major driver of growth.

“We launched 2018 with a high 41% growth rate in sales.  The Dino Group’s robust results are the effect of the business model we have adopted, the superior format of the Dino stores and their growing number. Consumer shopping prior to Easter also made a positive contribution to the results in the first three months of 2018. We are steadily opening new stores. This year we would like for the number of new store openings to be higher than in 2017. We see attractive market prospects; the European and Polish economies are experiencing an economic revival which is supportive of rising consumer demand”, says Szymon Piduch, President of the Management Board of Dino Polska S.A.

tagi: Dino Polska S.A.,