Sunday, June 26, 2022

Pizza brand says sales jumped despite inflation

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DP Eurasia which runs the Domino’s Pizza brand in Turkey and Russia, said on Thursday its like-for-like sales jumped 36% in the first four months of the year, driven by “excellent” demand in Turkey despite high inflation and geopolitical tensions.

Sales at the group’s own stores and franchise outlets rose to 1.04 billion Turkish lira ($63.40 million) in January to April, with like-for-like growth of 47.6% in Turkey, while Russia saw a decline of 1.5% based on the weak rouble.

“In Russia, we have returned a flat like-for-like performance as a result of a strong comparable period and the sustained conflict in the region,” Chief Executive Officer Aslan Saranga said in a statement.

The London-listed company, which runs 184 stores with around 3,000 employees in Russia, had in April said it planned to continue to operate in the country, while many Western groups including Starbucks and McDonald’s are quitting the market following Moscow’s invasion of Ukraine on Feb. 24.

The group said it had been focussed on optimising the existing store coverage areas in Russia, resulting in the closure of four stores during the first four months of the year.

During the same period in Turkey, where DP Eurasia is the largest pizza delivery group, it opened 12 new stores and expects to maintain the positive momentum of last year, when it saw the highest level of store openings since 2014.

The group still would not provide an outlook for the full year, after it refrained from doing it in April due to uncertainties over the impact of the war in Ukraine and high inflation in Turkey. read more

Annual inflation in Turkey jumped to a two-decade high of 69.97% in April, fuelled by the Russia-Ukraine conflict and rising energy and commodity prices after last year’s lira crash.

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