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 nationwide network of medium-sized supermarkets located in close proximity to where customers live. Its grocery stores are open every day (except for non-trade Sundays) from 6:00 a.m. to 11:00 p.m.1. The Dino network is one of the fastest growing retail grocery trade networks in Poland. At the end of September 2020 it consisted of 1,371 stores across Poland.
The Dino Group’s business model blends the advantages offered by the format of conveniently-located mid-sized supermarkets with the capability of rapidly opening new stores and offering an attractive assortment primarily entailing attractively-priced branded and fresh products.
Dino stores offer customers approximately 5 thousand stock keeping units (SKUs). Most of the SKUs are either fresh products or branded products, including a full range of groceries, household chemicals and cosmetics as well as small household articles and appliances. Every Dino store has a staffed meat counter, with the Agro-Rydzyna meat processing plant supplying high quality meat and cold cuts.
The Dino Group’s logistics network consists of five distribution centers located in Krotoszyn, Jastrowie, Wolbórz, Rzeszotary and Łobez. 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 September 2020 the Dino Group had 24.1 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.
1 Some stores are open for less than the standard working hours in connection with aligning their operation to local regulations.