Dino Polska maintains that it plans to increase the number of stores by the low teens of percent this year, the company said. Dino Polska expects that rising prices in the economy may reduce consumers’ willingness to buy, while at the same time – putting pressure on the Group’s profitability.
The company’s management board’s priorities for the next quarters include conducting a restrictive selection of locations for new Dino stores in order to keep store construction cost inflation as low as possible, while limiting the use of debt financing; the company’s management board expects the total number of Dino stores to increase by the low teens of percent in 2023 compared to the number of stores at the end of 2022, the company announced in its quarterly report.
In March, Dino Polska said it planned to increase the number of stores by the low teens this year, taking a more cautious approach to the process of selecting new locations and building outlets.
In addition, among the factors that will affect Dino’s operations and results were: Rising prices of consumer goods and services, which, if they rise too high, may negatively affect consumers’ purchasing power and their willingness to spend, and thus the value of sales at Dino stores; […] rising prices of agricultural commodities and rising food production costs, and thus increasing the prices at which retail chains purchase products from food producers; in addition, high inflation also affects Dino Poland Group’s operating costs, and together the above factors may put pressure on the Group’s profitability.
The company reported today that its Q1 EBITDA reached PLN 458.2 million, compared to PLN 332.82 million profit a year earlier. The EBITDA margin was 8.3%, compared to 8.6% a year ago.
Consolidated sales revenues reached PLN 5544.29 million in Q1 of this year, up 46.3% year-on-year. LfL sales growth was 27.2% in Q1, following an increase of 20.4% a year earlier.
Q1 2023. Dino Poland opened 54 new stores. At the end of March 2023, the Dino chain included 2,210 stores with a total sales floor area of 869,400 sqm (+18% y/y). A year earlier, in Q1, Dino Polska opened 66 stores, it was also reported.
Dino Polska is a leading player in the proximity supermarket segment in Poland, located mainly in western Poland, with an average sales floor area of about 400 sqm. The company debuted on the WSE in 2017.
Source: Dino Polska and ISBnews
