Revenues increased to RMB2.04 billion, representing 48.3% year-over-year growth
Adjusted net profit reached RMB50.9 million, from an adjusted net loss of RMB17.4 million in the same period of 2023
Store-level operating profit grew by 59.0%; Adjusted group EBITDA increased by 83.7%
Added 146 net new stores in the first half of 2024; 914 stores in operation across 33 cities as of June 30, 2024
HONG KONG, Aug. 28, 2024 /PRNewswire/ -- DPC Dash Ltd - Domino's Pizza China ("DPC Dash" or the "Company", together with its subsidiaries, the "Group") (1405.HK), Domino's Pizza's exclusive master franchisee in the China Mainland, the Hong Kong Special Administrative Region of China, and the Macau Special Administrative Region of China, today announced its unaudited consolidated interim financial results for the six months ended June 30, 2024 (the "Interim Results").
FIRST HALF OF 2024 HIGHLIGHTS[1]
Revenues reached RMB2.04 billion, representing an increase of 48.3% from RMB1.38 billion in the same period of 2023.
Opened 146 net new stores and entered into 4 new cities in the first half of 2024. Total stores reached 914, across 33 cities, as of June 30, 2024.
Average daily sales per store was RMB13,515 for the six months ended June 30, representing a 10.1% year-over-year increase.
Same-store sales growth (SSSG) was 3.6%, compared to 8.8% in the same period of 2023 and 8.9% in FY2023.
Store-level EBITDA was RMB393.9 million, representing an increase of 53.0% from RMB257.4 million in the same period of 2023. Store-level EBITDA margin was 19.3%, compared to 18.7% in the same period of 2023.
Store-level operating profit was RMB296.2 million, representing an increase of 59.0% from RMB186.3 million in the same period of 2023. Store-level operating profit margin was 14.5%, compared to 13.5% in the same period of 2023.
Adjusted EBITDA was RMB233.4 million, representing an increase of 83.7% from RMB127.0 million in the same period of 2023. Adjusted EBITDA margin was 11.4%, compared to 9.2% in the same period of 2023.
Adjusted net profit was RMB50.9 million, compared to adjusted net loss of RMB17.4 million in the same period of 2023.
Total loyalty program membership was 19.4 million, representing an increase of 78.0% from 10.9 million in the same period of 2023.
[1] Please refer to the section "KEY DEFINITIONS" below for detailed definitions on certain terms used.
Ms. Aileen Wang, CEO & Executive Director of DPC Dash commented, "Our robust results for the first half of 2024 underscore the effectiveness of our 4D strategy—Development, Delicious Pizza at Value, Delivery, and Digital—in driving growth and profitability in the underserved Chinese pizza market. With 28 consecutive quarters of positive same-store sales growth and our continued expansion efforts, we are well-positioned to deliver sustainable growth. Our commitment to operational excellence is reflected in our improvements in profitability metrics, and we remain focused on executing our expansion plans to capitalize on the vast opportunities ahead."
Ms. Helen Wu, CFO of DPC Dash, added, "We are pleased to report solid financial results for the first half of 2024, with a 48.3% year-over-year increase in revenues. In parallel with our top-line expansion, our consistent efforts to optimize efficiencies drove improvements in profitability at both store and corporate levels. Notably, we achieved an adjusted net profit of RMB50.9 million for the period. Going forward, we will continue to capitalize on our increasing economies of scale and further streamline our operations to generate long-term growth and sustainable value for our shareholders."
First Half 2024 Financial ResultsRevenues were RMB2.04 billion, representing an increase of 48.3% from RMB1.38 billion in the same period of 2023.
Store-level EBITDA was RMB393.9 million, representing an increase of 53.0% from RMB257.4 million in the same period of 2023. Store-level EBITDA margin was 19.3%, compared to 18.7% in the same period of 2023.
Store-level operating profit was RMB296.2 million, representing an increase of 59.0% from RMB186.3 million in the same period of 2023. Store-level operating profit margin was 14.5%, compared to 13.5% in the same period of 2023.
Net profit was RMB10.9 million, compared to RMB8.8 million in the same period of 2023.
Adjusted EBITDA was RMB233.4 million, representing an increase of 83.7% from RMB127.0 million in the same period of 2023. Adjusted EBITDA margin was 11.4%, compared to 9.2% in the same period of 2023.
Adjusted net profit was RMB50.9 million, compared to an adjusted net loss of RMB17.4 million in the same period of 2023.
Basic and diluted net profit per share were both RMB0.08, compared to RMB0.08 and RMB0.07, respectively, in the same period of 2023.
As of June 30, 2024, the Group held RMB1,089.3 million in cash and bank balances, as compared to RMB1,019.2 million as of December 31, 2023.
Operational Highlights
As of
Jun 30,
Dec 31,
Jun 30,
2023
2023
2024
Total stores
672
768
914
Number of cities entered
20
29
33
Loyalty membership numbers
10.9 million
14.6 million
19.4 million
6-Months Ending
Jun 30,
Full YearEnding
Dec 31,
6-Months Ending
Jun 30,
2023
2023
2024
Same-store sales growth (SSSG) (%)
8.8 %
8.9 %
3.6 %
Average Daily Sales per Store
12,275
12,580
13,515
Delivery as % of Revenue (%)
63.6 %
59.2 %
46.4 %
OutlookThe Group expects to open approximately 240 stores in 2024, and anticipates reaching the 1,000-store milestone during the fourth quarter of 2024.
Recent Developments
On January 31, 2024, DPC Dash opened its 800th store in China in Jinan, Shandong, marking another significant milestone in the company's remarkable growth.
On March 23, 2024, the Company entered one new city: Jiangmen, Guangdong. Long queues in front of the Domino's Pizza new store in China have become a common occurrence.
On May 8, 2024, the Company released its second Environmental, Social and Governance (ESG) Report for the fiscal year 2023. The report provided a comprehensive overview of DPC Dash's commitment to sustainable business practices, stakeholder engagement and responsible governance.
On May 13, 2024, the Company entered three new cities: Taizhou, Huizhou, and Jinhua in one week. The first stores in Huizhou and Jinhua both broke the DPC Dash record for daily sales.
On May 29, 2024, the Company and its talented team were presented with several coveted awards at Domino's Worldwide Rally 2024 in Las Vegas, highlighting the company's success in the fiercely competitive pizza market.
On June 28, 2024, the Company celebrated the grand opening of its 900th store in Chengdu, China. This milestone marks a significant achievement in the company's ambitious growth strategy.
As of July 31, 2024, DPC Dash held 28 out of the top 30 positions in the global records of Domino's Pizza for the first 30-day sales of new stores.
As of June 30, 2024, we operate 914 stores across 33 cities in China, including our milestone 900th store which opened in the same month. During the first half of 2024, we added a net of 146 new stores. As of August 20, 2024, we have opened an additional 31 stores, with 29 stores under construction, and 21 stores signed, keeping us on track to meet our full-year target of approximately 240 new stores in 2024.
Key Definitions
Store-level operating profit represents revenue less operational costs incurred at the store level, comprising salary-based expense, raw materials and consumables cost, depreciation of right-of-use assets, depreciation of plant and equipment, amortization of intangible assets, variable lease rental payment and short-term rental expenses, utilities expenses, advertising and promotion expenses, store operating and maintenance expenses and other expenses.
Store-level operating profit margin is calculated by dividing store-level operating profit by revenue for the same period.
Store-level EBITDA is defined as store-level operating profit for the period and adding back depreciation of plant and equipment and amortization of intangible assets in store-level.
Store-level EBITDA margin is calculated by dividing Store-level EBITDA by revenue for the same period.
Adjusted EBITDA is defined as Adjusted Net Profit/(Loss) for the period and adding back depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense and interest income and expenses, net.
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the same period.
Adjusted Net Profit/(Loss) is defined as profit/(loss) for the period and adding back fair value change of financial liabilities at fair value through profit or loss, share-based compensation and listing expenses.
Net new store openings. The number of gross new stores opened during the period minus the number of stores closed during the period.
Same-store sales growth (SSSG). SSSG compares the sales generated by same stores during the relevant period year-on-year: the SSSG for the six months ended June 30, ...
