„DINO POLSKA” S.A. – Dino Polska S.A. in H1 2020: double-digit LFL sales growth and a fast pace of store network expansion

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Dino Polska S.A. in H1 2020: double-digit LFL sales growth and a fast pace of store network expansion

In H1 2020 the Company generated revenue of PLN 4.7 billion (up 33.9% from the corresponding period of 2019), accompanied by double-digit sales growth in its current store network (LfL) of 13.3%. The Company also posted EBITDA growth of 36.9% in the period from January to June and further improved its EBITDA margin to 9.15% (+ 0.2 p.p. year on year).

In H1 2020 Dino Polska S.A. continued to pursue its strategy focused on the organic growth of its store network, revenue growth in its current store network (LFL) and profitability enhancement. “Recent months have demonstrated that our store format is very attractive to consumers who know that the Dino brand means a rich, diverse and affordable product offering”, says Izabela Biadała, Management Board member of Dino Polska S.A.

During the first six months of this year the Company opened 84 new stores versus the 81 stores opened in the corresponding period of the previous year. At the end of June of this year the network consisted of 1,302 Dino stores, i.e. 246 stores more year on year. “We see that new Dino store openings are welcomed by local communities and that is why we consistently follow our strategy and maintain a high pace of growth. In 2020 we intend to earmark roughly PLN 950 million on investments, with the vast majority being spent on rolling out our store network and developing our logistical base”, says Michał Krauze, Management Board member and CFO of Dino Polska S.A.

In the first half of 2020 the Company launched its fifth distribution center located in Łobez in the Western Pomeranian region. It also decided to build another two distribution centers: one in Sieroniowice in the Opole region and one in Sierpc in the Mazowsze region. The new distribution centers will cater to the rising product deliveries made to Dino’s current stores while supporting its network’s ongoing geographic expansion. The new distribution centers slated to be opened in 2021 will also provide an opportunity to establish business relations with new regional producers of foodstuffs, including in particular producers of fruit and vegetables and dairy products.

The Company’s capital expenditures totaled PLN 436 million from January to June 2020 versus PLN 434 million in the correponding period of last year. In the first half of this year the Company also performed investments to reduce its environmental impact, i.e. including photovoltaic installations on the roofs of Dino stores across Poland and initiatives to reduce its electricity demand. At present, more than 10% of all Dino stores have installed photovoltaic panels, while the Company intends to have 400 Dino stores across Poland powered by solar energy in early 2021, which will materially reduce its impact on the natural environment.

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.}