DP Poland conditionally raises 20.5 mln pounds to fuel expansion in Poland, Croatia

"As a result, the company has conditionally raised a total of approximately 20.5 million British pounds ($24 million/25.5 million euro) before expenses pursuant to the subscription, placing and retail offer (together, the “Fundraise”)," the London-listed store operator said in a press release.

The company said that 10,080,645 ordinary shares will be issued as a result of the retail offer. In total, 206,653,224 new ordinary shares will be issued pursuant to the Fundraise.

DP Poland has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland and Croatia. The group operates 111 stores in Poland and five in Croatia.

In a fundraising presentation published last week, DP Poland said it is on target to reach 200 stores in 3 years in Poland and Croatia. It plans to use 7 million to 8 million pounds out of the total sum from the fundraising for "aggressive rollout" of some 45-50 stores in Poland and Croatia. Besides, it has pencilled up to 5.3 million pounds for potential acquisition opportunities, as well as 2.5 million pounds for stores’ upgrades.

DP Poland believes that the estimated market potential is above 50 stores across Croatia.

It acquired in 2022 All About Pizza, active as Domino's Croatia, for a total consideration of some 2.4 million pounds.

DP Poland said in the presentation that its Croatian like for like system sales, measuring growth in sales, adjusted for new or divested businesses, increased by 3.2% year-on-year in 2023. Its Croatian total system sales rose by 44.2% year-on-year in 2023.

Four locations are currently operating in the Croatian capital Zagreb and one location in the eastern town of Osijek, DPP, said, adding that building a strong business in Zagreb is to kick start sub-franchising.

(1 GBP = 1.171 euro)