In 2019 the Polish grocery store network belonging to Dino Polska S.A. consistently continued to pursue its strategy resulting in further dynamic network development and improved profitability. The Company’s revenue climbed to PLN 7.6 billion, and this was accompanied by higher sales in the current store network (LfL) of 11.6%. In 2019 the Company opened 243 new stores whereby there were 1,218 stores operating across Poland under the Dino brand at the end of December. In 2019 the Company also developed its logistics consisting of four distribution centers at the end of last year, while the construction of another one had been begun. In 2019 the Company earmarked PLN 827.8 million for investments, representing 31% growth over 2018.
Dino Polska S.A.’s revenue was PLN 7.6 billion in 2019, signifying growth in excess of 31% versus the corresponding period of 2018. This was accompanied by 34.1% growth of EBITDA, further improvement in the EBITDA margin to 9.5% and a high rate of sales in current stores (like-for-like, LfL) of 11.6%.
“The growing number of people visiting our stores is a source of pleasure for us. We are constantly striving to earn the trust of our customers and we expend significant effort to align our product assortment to their needs”, says Szymon Piduch, President of the Management Board of Dino Polska S.A.
In parallel, the Company has undertaken initiatives to reduce its environmental impact.
“We are striving to reduce our environmental impact. In the latter half of 2019 we started to install photovoltaic panels on the roofs of Dino stores, which is one of our key projects in environmental policy. Through this investment, our stores will be powered with environmentally-friendly energy from the sun and in coming years will markedly reduce our energy demand from conventional sources”, adds Szymon Piduch.
Total capital expenditures were PLN 827.8 million in 2019 and were mainly spent on store rollout and expansion of logistics. The Company opened 243 new stores during last year. The total selling area topped 472 thousand square meters, up 26% from the year before. 105 new Dino stores launched operations in the fourth quarter of last year alone.
As part of developing its logistics capacity in 2019, the Company completed the process of commissioning its fourth distribution center in Rzeszotary in Lower Silesia and also opened a distribution center in Wolborz in central Poland to replace the previously-leased distribution center located in Piotrków Trybunalski. The construction of another distribution center in Łobez in northwestern Poland also kicked off.
The Dino Group plans that its capital expenditures in 2020 associated with further development will be roughly PLN 950 million.
“We would like to maintain our current pace of growth. We continue to see a lot of space to enhance the density of our network in southwestern Poland and expand into other regions. In accordance with our policy to date, we would like to earmark the entirety of our profits for continued growth. We are poised for the number of new Dino store openings in 2020 to grow at a similar pace to last year’s. In parallel with network rollout, we are working on sustaining high LFL sales growth and continuing to improve our profitability”, recaps Szymon Piduch.
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.