HONG KONG, Aug. 1, 2024 /PRNewswire/ -- DPC Dash Ltd ("DPC Dash" or the "Company", together with its subsidiaries, the "Group") (1405.HK), Domino's Pizza's exclusive master franchisee in the China Mainland, 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, 2024 ("1H2024").
The Group expects to report a net profit of no less than RMB10.0 million for 1H2024, compared to approximately RMB8.8 million for 1H2023. It's important to note that while both periods show positive Net Profit, the 1H2023 Net Profit was primarily influenced by a one-time, non-operational fair value gain on convertible senior ordinary shares. The 1H2024 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 RMB48.0 million for 1H2024, compared to an Adjusted Net Loss (non-IFRS measure) of approximately RMB17.4 million for 1H2023.
The Board attributes the anticipated strength of the Group's 1H2024 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. Additionally, the Company has achieved further enhancements in its profit margin through improvements at both the store and corporate levels throughout 1H2024.
Ms. Aileen Wang, CEO & Executive Director of DPC Dash, commented, "I'm incredibly proud of our team's achievements in the first half of 2024. Our shift to a positive Net Profit of no less than RMB10.0 million and Adjusted Net Profit of no less than RMB48.0 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 1H2024. 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 1H2024 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 1H2024, which is expected to be published before the end of August 2024.
| [1] The Company defines "Adjusted Net Profit/(Loss)", a non-International Financial Reporting Standards ("IFRS") measure, as profit/(loss) for the period and adding back fair value change of financial liabilities at fair value through profit or loss, share-based compensation and listing expenses. |
In evaluating its business, the Group uses non-IFRS measures such as Adjusted Net Profit/(Loss) as additional financial measures, which are not required by, or presented in accordance with, IFRS. 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.
The Group defines Adjusted Net Profit/(Loss) (non-IFRS measure) as profit/(loss) for the period and adding back fair value change of financial liabilities at fair value through profit or loss, share-based compensation and listing expenses. Such non-IFRS measure enables the assessment of the Group's operating results without considering the impacts of the aforementioned non-cash items and one-off items that the Group does not consider to be indicative of the Group's operating performance in the future.
The Group's presentation of Adjusted Net Profit/(Loss) (non-IFRS measure), however, may not be comparable to similarly titled measures presented by other companies. The use of such non-IFRS measure has limitations as an analytical tool, and Shareholders and potential investors should not consider it 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 and which are difficult to predict. 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.
Since actual results or outcomes could differ materially from those expressed in any forward-looking statements, the Company strongly cautions investors against placing undue reliance on any such forward-looking statements. 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. Statements of, or references to, the Company's intentions or those of any of its Directors are made as of the date of this document and/or the Announcement (as applicable). Any such intentions may change in light of future developments.
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
DPC Dash is Domino's Pizza's exclusive master franchisee in the China mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China. 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 developed and localized pizza-focused menu, unique expertise and leadership in delivery, technology focus and scalable and replicable store economic model. DPC Dash operates more than 900 stores in 33 cities in China as of June 30, 2024.
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