DPC Dash: Issues Positive H1-2024 Profit Alert

Hong Kong / HK. (dp) DPC Dash Limited (Domino’s Pizza China), exclusive master franchisee of Domino’s Pizza Inc. in the People’s Republic of China, the Hong Kong Special Administrative Region of China, and the Macau Special Administrative Region of China, announced a positive profit alert for the six months ended June 30 (H1-2024).

Based on the preliminary assessment of the unaudited consolidated management accounts of the Group for H1-2024 (the Management Accounts) and other relevant information currently available to the board of directors of the Company (the Board), the Group anticipates a total revenues of no less than RMB 2.00 billion for H1-2024, representing a year-over-year growth of no less than 45.0 percent from approximately RMB 1.38 billion for the six months ended June 30, 2023 (H1-2023).

The Group expects to report a net profit of no less than RMB 10.0 million for H1-2024, compared to approximately RMB 8.8 million for H1-2023. It’s important to note that while both periods show positive Net Profit, the H1-2023 Net Profit was primarily influenced by a one-time, non-operational fair value gain on convertible senior ordinary shares. The H1-2024 Net Profit is positive without such non-operational gains, indicating a notable enhancement in the Company’s operational efficiency and profitability. The Group expects to report an adjusted Net Profit (non-IFRS measure) of no less than RMB 48.0 million for H1-2024, compared to an Adjusted Net Loss (non-IFRS measure) of RMB 17.4 million for H1-2023.

The Board attributes the anticipated strength of the Group’s H1-2024 operating results to several factors. The Company has successfully expanded its store network, growing from 672 stores as at June 30, 2023 to 768 stores as at December 31, 2023, and further to 914 stores as at June 30, 2024. This expansion, coupled with continuous revenue growth in existing stores and new stores’ strong sales performance in new growth markets, has driven overall revenue growth. Also the Company has achieved further enhancements in its profit margin through improvements at both the store and corporate levels throughout H1-2024.

CEO and Executive Director Aileen Wang: «I’m proud of our team’s achievements in the first half of 2024. Our shift to a positive Net Profit of no less than RMB 10.0 million and Adjusted Net Profit of no less than RMB 48.0 million reflects our solid expansion strategy and continuous focus on operational excellence. These results validate our approach and set a strong foundation for sustainable growth.»

As at the date of this announcement, the Company is still in the process of finalizing the interim results of the Group for H1-2024. The information contained in this announcement is therefore only based on a preliminary assessment of the Management Accounts and other relevant information currently available to the Board. Such Management Accounts have neither been confirmed nor audited by the Company’s independent auditor, nor reviewed by the audit committee of the Company and are subject to finalization and necessary adjustments (if any). As such, the actual interim results of the Group for H1-2024 may be different from the disclosure in this announcement. Shareholders and potential investors are therefore advised to read carefully the interim results announcement of the Company for H1-2024, which is expected to be published before the end of August 2024.