In Q1 2020 Dino Polska S.A. completed the investment process to launch 39 stores (versus 33 stores in Q1 2019), thereby maintaining the high rate of expansion seen to date. As at the end of Q1 2020 the Dino network consisted of 1,257 stores, 248 more than last year. Concurrently, the Company was engaged in finishing up the construction of its 5th distribution center in Łobez in the Western Pomeranian region that will commence operations in Q2 of this year.
In the first three months of this year Dino Polska’s revenue was PLN 2.22 billion, up by 42.3% versus the corresponding period of last year. Our EBITDA result surged upward 44% to PLN 190 million, with an EBITDA margin of 8.6%. This was accompanied by an increase in total operating expenses to PLN 2.08 billion. The necessity of aligning the Company, especially Dino’s stores, distribution centers and means of transport to function during the special conditions which businesses started to face in March of this year partially contributed to this result.
“Our priority was to ensure the safety of our employees and customers and we have proven that the high level of standardization in Dino’s stores enables us to adapt efficiently to very demanding market conditions. All our stores are open for business with standard working hours from 6:00 a.m. to 11:00 p.m.”, says Szymon Piduch – President of the Management Board of Dino Polska S.A. “At the same time, we continue to follow our pricing policy, which while incorporating high quality and extensive diversity in our offering is an important way of instilling trust among our customers”, recaps Szymon Piduch.
The rate of like-for-like, or LFL, sales was 20.3%, which confirms that the Dino store format is well tailored to consumer needs. Their close proximity and broad range of products make it possible to shop for food staples quickly and comfortably, including in particular fresh products whose share of Dino Polska’s revenue in Q1 topped 40%.
During the first quarter of the year the Company earmarked PLN 229 million for investments. On top of rolling out the store network this was for the construction of the 5th distribution center in Łobez in the Western Pomeranian region. According to prior plans, Dino Polska’s capital expenditures in the full year of 2020 will total approximately PLN 950 million with the bulk of that figure going to the expansion of the store network and the development of logistics facilities.
Dino Polska is consistently making investments in the framework of its environmental policy. At the end of March 2020, 55 Dino stores had photovoltaic panels on their roofs. The plan is to ramp up that number to approximately 400 stores in Q1 2021. After the completion of that stage, the capacity of the installed panels will be approximately 14 MW. At the same time, the Company will replace lighting in parking lots for roughly 1,000 Dino stores switching from sodium light fixtures to LED fixtures that consume 75% less electricity. These investments will cut the demand for conventional energy and contribute to reducing the quantity of harmful substances released into the atmosphere.
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 June 2020 it consisted of 1,302 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 June 2020 the Dino Group had 23.6 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.