DPC Dash Ltd Announces Full Year 2024 Financial Results

Revenues increased toRMB4.31 billion, representing 41.4% year-over-year growth

Store-level operating profit grew by 48.7%; Adjusted group EBITDA increased by 64.1%

Adjusted net profit reachedRMB131.2 million, representing 1,394.2% year-over-year growth

Added 240 net new stores in 2024; 1,008 stores in operation across 39 cities as ofDecember 31, 2024

HONG KONG,March 27, 2025/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 Chinese Mainland, the Hong Kong Special Administrative Region ofChina, and the Macau Special Administrative Region ofChina, today announced its audited consolidated financial results for the year endedDecember 31, 2024("FY2024").

FY2024 HIGHLIGHTS^[1]

• RevenuesreachedRMB4.31 billion, representing an increase of 41.4% fromRMB3.05 billionin the year endedDecember 31, 2023("FY2023").
• Opened 240net new storesand entered into 10 new cities in FY2024. Total stores reached 1,008 across 39 cities, as ofDecember 31, 2024.
• Average daily sales per storewasRMB13,126in FY2024, representing a 4.3% year-over-year increase.
• Same-store sales growth (SSSG)was 2.5%, compared to 8.9% for FY2023 and 3.6% in the first six months of 2024.
• Store-level EBITDAwasRMB831.4 million, representing an increase of 44.2% fromRMB576.6 millionin FY2023.Store-level EBITDA marginwas 19.3%, compared to 18.9% for FY2023.
• Store-level operating profitwasRMB624.0 million, representing an increase of 48.7% fromRMB419.7 millionin FY2023.Store-level operating profit marginwas 14.5%, compared to 13.8% for FY2023.
• Adjusted EBITDAwasRMB495.2 million, representing an increase of 64.1% fromRMB301.7 millionin FY2023.Adjusted EBITDA marginwas 11.5%, compared to 9.9% for FY2023.
• Adjusted net profitwasRMB131.2 million, representing an increase of 1,394.2% fromRMB8.8 millionin FY2023.
• As ofDecember 31, 2024, the Group heldRMB1,069.3 millionincash and bank balances,as compared toRMB1,019.2 millionas ofDecember 31, 2023.
• Total loyalty program membershipwas 24.5 million, representing an increase of 67.8% from 14.6 million in FY2023.

Ms.Aileen Wang, CEO& Executive Director of DPC Dash commented,"Our implementation of the 4D strategy yielded solid results in 2024, with total revenues representing a 41.4% increase year-over-year. Through our balanced'Go-Deeper'and'Go-Broader'approach, we expanded our network to 1,008 stores across 39 cities, adding a net of 240 new locations while maintaining positive same-store sales growth for the 30th consecutive quarter. The focused execution of our menu innovation at value, service optimization, and digital initiatives has driven consistent growth. Looking ahead to fiscal year 2025, we remain committed to operational efficiency and strategic site selection to ensure long-term returns and shareholder value."

Ms.Helen Wu, CFO of DPC Dash, added,"Our strong financial performance in 2024 highlights the effectiveness of our strategic initiatives and operational discipline. We achieved meaningful improvements in profitability, with adjusted EBITDA increasing by 64.1% year-over-year toRMB495.2 million. This growth reflects our effective cost management and the benefits of scale. Notably, we delivered our first full year of positive reported net profit, marking an important milestone for our company. As we move forward, our solid financial position will support our ongoing efforts to drive sustainable growth."

FY2024 Financial Results

Operational Highlights

Recent Developments

OnMay 30, 2024, the Company received the Best Digitalization Award (Food and Dining Category) at the 15th Tiger Roar Awards, validating the Company's emphasis on digital solutions as part of its core strategy.

OnJune 25, 2024, the Company was named a Top 20 Digitalized Enterprise by China Digital Innovation Expo (CDIE) 2024, an honor which recognizes the Company's innovative approach and leadership on the digital front.

OnJuly 8, 2024, the Company received the 2023 Best IPO Award from China Financial Market 2024, a testament to its unwavering commitment, dedication, and execution in delivering value to shareholders.

OnAugust 16, 2024, the Company announced that it had been selected as a constituent stock for the Hong Kong Hang Seng Composite Index, effectiveSeptember 9. OnSeptember 9, 2024, the Company announced its official inclusion in both the Shanghai-Hong Kong Stock Connect Program and the Shenzhen-Hong Kong Stock Connect Program.

OnNovember 15, 2024, the Company celebrated the grand opening of its 1,000th store inChengdu, China. This milestone marks another significant milestone in the Company's proven"Go-Deeper, Go-Broader"store network strategy.

OnDecember 17, 2024, the Company received recognition from the prestigious 2024"Annual Seven-Star Awards for Outstanding Contributions in Food Safety& Public Health"for the fourth year. This honor stands as a testament to DPC Dash's unwavering commitment to food safety, quality, and excellent service.

As ofDecember 31, 2024, Domino's Pizza is ranked in the Top 2 in terms of pizza sales inChinafor 2024, according to market survey conducted by Frost& Sullivan.

As ofDecember 31, 2024, the Chinese mainland market is now also ranked the third largest Domino's Pizza international market in terms of store count.

During the 12 months ended onDecember 31, 2024, the Company expanded into 10 new cities, includingShenyang,Chongqing,Zhengzhou, and Nanning. InJanuary 2025, the company entered 6 additional cities during the New Year and pre-Chinese New Year holiday season, includingNanchang.

OnJanuary 14, 2025, the Company was recognized as a 2024 Best Employer by Mercer, marking the third consecutive year that the Company has received this prestigious award.

OnFebruary 17, 2025, the Company was named one of the"Highest Growth Potential Consumer Stocks"in New Fortune's"2024 Best Hong Kong Listed Companies"ranking. This recognition reflects the Company's strong performance across profitability, growth trajectory, investment returns, and innovation metrics, underscoring its market leadership and future prospects in the consumer sector.

As ofFebruary 28, 2025, the Company held all the top 40 positions in the global records of Domino's Pizza for the first 30-day sales of new stores. The Company's first store inShenyangset a new global record for Domino's Pizza in terms of first 30-day sales for new stores, achieving approximatelyRMB11.1 millionin revenue, demonstrating the strength and popularity of the Domino's Pizza brand name inChina.

OnMarch 3, 2025, the Company received the Gold Franny Award from Domino's Pizza, Inc. for the seventh consecutive year. This award, presented within the Domino's global system, recognizes U.S. and international franchisees for outstanding operating results, store development, and growth.

Outlook

The Group expects to open approximately 300 net new stores in 2025. Total capital expenditure for store development, including remodeling, relocation, and maintenance, is expected to be approximatelyRMB570 million.

As ofMarch 14, 2025, the Company opened 82 net new stores, with 26 stores under construction, and 62 stores signed, accounting for over 56% of the total targeted store opening plan for the full year.

The Group is also striving to enhance the cost efficiency as we continue to expand, and our stores continue to operate at a higher capacity.

Conference Call Information

The Company will host a conference call today,Thursday, March 27, 2025, at7:00 pmHong Kong Time (orThursday, March 27, 2025, at7:00 am Eastern Time) to discuss the financial results.

A live audio-only webcast of the call can be accessed directly at:https://event.choruscall.com/mediaframe/webcast.html?webcastid=tDOLLjE9.

To participate by phone, participants are strongly encouraged to pre-register for the conference call, by using the link provided below. Upon registering, each participant will receive a set of participant dial-in numbers, the event passcode, and a unique access PIN, which can be used to join the conference call.

Pre-registration Link:https://dpregister.com/sreg/10197148/fe92777ba0

An audio-only replay of the call will be accessible throughApril 3, 2025, by dialing the following numbers:

Key Definitions

• Store-level operating profitrepresents 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 marginis calculated by dividing store-level operating profit by revenue for the same year.
• Store-level EBITDAis defined as store-level operating profit for the year and adding back depreciation of plant and equipment and amortization of intangible assets in store-level.
• Store-level EBITDA marginis calculated by dividing Store-level EBITDA by revenue for the same year.
• Adjusted EBITDAis defined as Adjusted Net Profit for the year and adding back depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense and interest income and expenses, net.
• Adjusted EBITDA marginis calculated by dividing Adjusted EBITDA by revenue for the same year.
• Adjusted Net Profitis defined as profit for the year 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 year endedDecember 31, 2024compares the same-store sales of the year endedDecember 31, 2024and that of the year endedDecember 31, 2023; the SSSG for the six months endedJune 30, 2024compares the same-store sales of the six months endedJune 30, 2024and that of the six months endedJune 30, 2023; and the SSSG for the year endedDecember 31, 2023compares the same-store sales of the year endedDecember 31, 2023and that of the year endedDecember 31, 2022.
• Average Daily Sales per Storeis calculated by dividing the revenues generated from the relevant store for a particular period by the aggregate number of days of operation of such store during the same year.

Non-IFRS Measures

To supplement the Group's consolidated financial statements that are presented in accordance with the IFRS, the Group also uses Adjusted Net Profit (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) as additional financial measures, which are not required by, or presented in accordance with, IFRS.

"Store-level EBITDA"is defined as store-level operating profit for the year 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 year."Adjusted Net Profit"is defined as profit for the year and adding back fair value change of financial liabilities at fair value through profit or loss, share-based compensation and listing expenses."Adjusted EBITDA"is defined as Adjusted Net Profit for the year 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 year.

The Group believes that these non-IFRS measures facilitate comparisons of operating performance from period to period and company to company. The Group believes that these measures provide useful information to investors and others in understanding and evaluating the Group's results of operations in the same manner as they help the Group's management. However, the Group's presentation of Adjusted Net Profit (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) may not be comparable to similarly titled measures presented by other companies. The use of such non-IFRS measures has limitations as an analytical tool, and shareholders and potential investors of the Company should not consider them in isolation from, or as substitute for analysis of, the Group's results of operations or financial condition as reported under IFRS.

Forward-Looking Statements

Certain statements in this document and/or the Announcement are forward-looking statements that are, by their nature, subject to significant risks and uncertainties. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events, or performance (often, but not always, through the use of words or phrases such as"will","expect","anticipate","estimate","believe","going forward","ought to","may","seek","should","intend","plan","projection","could","vision","goals","aim","aspire","objective","target","schedules", and"outlook") are not historical facts, are forward-looking and may involve estimates and assumptions and are subject to risks (including but not limited to the risk factors detailed in this document and/or the Announcement), uncertainties and other factors some of which are beyond the Company's control. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to the Company about the businesses that it operates. The risks, uncertainties and other factors, many of which are beyond the Company's control, that could influence actual results include, but are not limited to: the Company's operations and business prospects; its business and operating strategies and ability to implement such strategies; its ability to develop and manage its operations and business; its ability to control costs and expenses; its ability to identify and satisfy customer demands and preferences; the actions and developments of its competitors; general economic, political and business conditions in the markets in which it operates; and changes to regulatory and operating conditions in the industry and geographical markets in which it operates.

Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited or under applicable law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

Since actual results or outcomes could differ materially from those expressed in any forward-looking statements, the Company's shareholders and potential investors are advised not to place undue reliance on the forward-looking statements and to exercise caution in dealing in securities in the Company.

About DPC Dash Ltd

DPC Dash is Domino's Pizza's exclusive master franchisee in the Chinese mainland, the Hong Kong Special Administrative Region ofChinaand the Macau Special Administrative Region ofChina. Domino's Pizza, Inc., DPC Dash's global franchisor, is one of the most widely-recognized global consumer brands and the world's largest pizza company. Led by a seasoned and visionary management team, DPC Dash is a market leader that differentiates from competitors with, among others, a continually innovated and localized pizza-focused menu, unique expertise and leadership in delivery, technology focus and scalable and replicable store economic model. DPC Dash operates 1,008 stores in 39 cities in the Chinese mainland as ofDecember 31, 2024.

For more information, please visitwww.dpcdash.com

For official company announcements, please visitwww.hkexnews.hk

Contacts

DPC Dash Ltd Investor Relations:

DPC Dash Ltd

IR@dominos.com.cn

ICR, LLC

dpcdashIR@icrinc.com 

DPC Dash Ltd Media Relations:

ICR, LLC

dpcdashPR@icrinc.com

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SOURCE DPC Dash Ltd