Dino Polska plans to open 1 to 2 distribution centers per year in the long term, assuming that such a center serves approximately 350 to 400 stores, informed Michał Krauze, board member and CFO. As he assessed, the supply chain of the Dino store chain is not endangered in connection with the war in Ukraine.
“When it comes to the number of stores, I would not like to refer to specific numbers. We can see that we still have a lot of room for development. There are voivodships where we do not have a single open store yet. As for logistics centers, our assumption is that such a center will service approximately 350 to 400 stores, so we will open approximately 1-2 logistics centers annually,” Krauze said.
He also noted that the plan to open new stores for this year concerns the number of stores not lower than last year.
“We have secure locations in all voivodeships, also in Greater Poland, where we have the highest density of stores. In Greater Poland, the density will increase compared to what we have at the moment and we believe that in every other province we are able to achieve similar levels of density,” assessed Krauze.
Last year, Dino Polska declared a target for the pace of network development in 2021 at a level similar to 2020 and estimated an increase in the number of openings by 20%.
“We take the current situation into account and we don’t want to be too optimistic,” added Krauze.
Commenting on the impact of the war in Ukraine on the supply chain, he judged that it was not endangered in the cases of the Dino store chain.
“As far as the supply chain is concerned, nothing has happened in the last two weeks. As far as the “basket” is concerned, we also did not see a change in the structure of the “basket”, demand is very strong,” assessed the CFO.
“We work mainly with Polish suppliers, but we do not know what their supply chain is. As for the increase in the level of inventories, we increased it, seeing inflation,” Krauze said.
The Dino Group emphasizes that it “consistently implements” the expansion of the Dino store network by opening 123 new stores in 2016, 147 in 2017, 202 in 2018, 243 in 2019, 255 in 2020 and 343 in 2021 ., which was accompanied by an increase in the sales area by 24.4%, 23.8%, 27.3%, 25.7%, 21.4% and 23.9%, respectively. As a result, at the end of 2021, the company had 1,815 stores, while at the end of 2015 this number was 511.
The company announced today that the management board of Dino Polska, taking into account the relatively small market share of the Dino chain, amounting to less than 5%, plans to continue using the organic development opportunities of the network in its current form by: (i) further densifying stores in the current areas of operation, and (ii) consistent expansion in new regions, which should ultimately be characterized by a similar saturation of Dino stores to other regions of the country.
Dino Polska recorded PLN 805.3 million of consolidated net profit attributable to shareholders of the parent company in 2021, compared to PLN 643.92 million profit a year earlier.
Source: Dino Polska and ISBnews
