Dino Polska S.A., a Polish grocery store network, reports ongoing business size growth and profitability improvement in H1 2019. Its revenue from January to June 2019 totaled PLN 3.5 billion. At the same time, it opened 81 stores while launching another new distribution center and kicking off the construction of yet another one. In H1 2019 Dino Polska S.A. earmarked PLN 434 million for network development, or 55.9% more than in the corresponding period of last year.
Dino Polska S.A.’s top line hit the PLN 3.5 billion watermark, signifying 30.5% growth year on year. This was accompanied by an increase in EBITDA of more than 36.8% and further improvement in the EBITDA margin to 8.9% (up 0.4 p.p. year on year). H1 2019 performance is the outcome of Dino’s steady network expansion driven by new store openings and higher like-for-like sales in existing stores (like-for-like, LfL), which in H1 2019 was 11.1%.
“We continue to observe a positive response to new Dino store openings as they rapidly win consumer confidence. The high pace of like-for-like sales and the growing amount of shopping done in Dino stores are the best possible score clients can give to our product offering, which we shape with great attention, mostly using fresh products and branded products”, says Szymon Piduch, President of the Management Board of Dino Polska S.A.
Dino Polska S.A. continued to pursue its rapid growth strategy in H1 2019. 81 new stores were opened in this period, meaning that there were 1,056 Dino stores operating at the end of June 2019. This implies an increase of 207 stores (i.e. 24%) versus the same period last year. The number of stores in the Dino network has increased by 499 over the last three years up to 30 June 2019, i.e. it has nearly doubled.
The capital expenditures incurred by Dino Polska S.A. in H1 2019 totaled PLN 434 million versus PLN 278 million in the corresponding period of 2018. The vast majority of this spend was earmarked to rollout the Dino store network and develop its logistics base. In the first half of 2019 the company completed the construction of its own distribution center in Wolbórz in the Łódź region to replace the distribution center leased in Piotrków Trybunalski. The company also kicked off another distribution center investment in the town of Łobez in the Western Pomeranian region. The new distribution centers will cater to the growing product deliveries made to Dino’s current stores while supporting its network’s ongoing geographic expansion. They will also enhance its ability to collaborate with the producers of food products coming from these regions.
“The offering in our stores relies predominantly on fresh products accounting for nearly 40% of our sales mix. We are keen on Polish producers delivering the highest possible amount of these products, thereby traversing the shortest possible distance to our distribution centers; that is why we happily enter into cooperation with regional producers of fruits and vegetables and dairy products. The newly-opened distribution center in Wolbórz in the vicinity of Piotrków Trybunalski will be a great opportunity to do just that”, adds Szymon Piduch.
The growing retail grocery market in Poland and the favorable macroeconomic environment are conducive to the further expansion of the Dino network. Unemployment is declining, while Poles’ disposal income is climbing. Consequently, they are gradually increasing their consumption-related expenditures. The social programs run by the government to date along with ones that are being launched anew additionally augment the standing of households. Dino Polska anticipates that these positive macroeconomic trends will persist through subsequent quarters, which should exert a positive impact on the retail grocery market in Poland.
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 1,056 stores (data as at 30 June 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. 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 June 2019, the Dino Group had 18.3 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.