Dino Polska S.A., a Polish grocery store network posts nearly 23% growth in revenue up to PLN 1.56 billion in Q1 2019. This was accompanied by an increase in EBITDA of more than 26% and further improvement in the EBITDA margin (+0.3 p.p.).
At the end of March 2019, as a result of opening 33 new stores in Q1, its network numbered 1,009 stores. That signifies an increase of 209 stores (+26%) versus March 2018. The Dino store network has nearly doubled in size over the last three years.
Dino Polska continues to pursue its organic growth strategy and intends to open more stores with a wide offer of fresh products, affording its customers the comfort of doing their daily shopping close to their homes.
In parallel with
the improvement in the Group’s revenue, like-for-like sales growth (LfL) was
The number of customer visits to stores also rose in Q1 2019 in connection with the Dino store network rollout.
Dino Polska’s consolidated EBITDA grew year on year by 26.2% to PLN 132.2 million. Its EBITDA margin in Q1 2019 was 8.5%, i.e. 0.3 percentage points above the corresponding period of 2018.
“We are pleased with the results we delivered in Q1. We posted nearly 23% top line growth and robust profitability ratios. We produced these results in spite of the unfavorable calendar effect, i.e. the shift in the timing of the Easter Holiday to Q2 2019 and the 8% decline year on year in the number of trading days. In subsequent quarters we expect to accelerate the pace of growth. The market is conducive, including Poles’ upbeat consumer sentiment ensuing from the robust macroeconomic situation, steadily rising income and low unemployment”, says Szymon Piduch, President of the Management Board of Dino Polska S.A.
In Q1 the Company spent more than PLN 240 million on investments to further its network rollout. It estimates that its total investment spend in full year 2019 will be PLN 850 million. A substantial portion of its capital expenditures will be used to expand the store network and logistics functions.
“We have ambitious plans. In 2018 we opened a record-breaking number of stores: 202; this year we intend to open an even greater number of new stores. We are constantly refining our product assortment: we focus on high quality products originating from Polish producers, low prices and an extensive offering of fresh products that accounted for more than 39% of our revenue in Q1 of this year. We would like to be the grocery store of first choice for an ever larger number of Poles”, adds Szymon Piduch.
The Dino store network at the end of Q1 2019 numbered 1,009 stores with a total selling area of 389 thousand m² versus 800 stores and a total selling area of 305 thousand m² in the corresponding period one year ago. 33 stores were opened from January to March 2019 versus the 25 new stores opened in Q1 2018.
The growth in the network’s business size is the outcome of the Dino Group consistently executing its strategy, calling for the continuation of its rapid organic growth in store numbers (123 new stores in 2016, 147 in 2017 and 202 in 2018), whereby the Dino network has transformed into a national player employing 17.4 thousand people.
More information regarding Dino Polska S.A.:
Dino is a Polish network consisting of medium-sized grocery supermarkets located close to customers’ places of residence that is one of the fastest growing networks on the overall retail grocery market in Poland. Dino’s network consists of 1,009 stores (data as at 31 March 2019), primarily located in western Poland.
The Dino Group’s business model combines the advantages of the medium-sized supermarket format situated in convenient locations for customers with the ability to open new stores quickly and an attractive product range, comprising primarily branded and fresh products at competitive prices.
Dino stores offer their customers approx. 5,000 stock keeping units (SKUs), mostly well-known branded products and fresh products. The Dino Group offers its key products at prices similar to the largest grocery retail networks in Poland. Every Dino store has a fresh meat counter with customer service staff. The Agro-Rydzyna meat processing plant supplies high quality meat and cold cuts.
The Dino Group’s logistics network consists of four distribution centers located in Krotoszyn, Jastrowie, Piotrków Trybunalski and Rzeszotary. Its geographic range makes it possible to deliver fresh products to all of the stores in Dino’s network every day of the week.
At the end of March 2019 the Dino Group had 17.4 thousand employees.The Company has been listed on the main floor of the Warsaw Stock Exchange since April 2017. Dino Polska S.A. is majority-owned by Polish capital.