Dino Polska (DNP) Q2 2024 earnings summary

Executive summary

• Sales revenue grew 15.1% year-over-year to PLN 13,914 million in 1H 2024, driven by network expansion and LFL growth.

• Store count reached 2,504 as of June 30, 2024, with 98 new stores opened in 1H 2024 and a 10.4% increase in net sales area.

• Like-for-like (LFL) sales increased 6.4% year-over-year, with fresh products accounting for 40.3% of sales.

• Net profit increased 1.7% year-over-year to PLN 643.4 million, while EBITDA declined 1.6% year-over-year.

• Continued investment in renewable energy, with 2,289 stores equipped with photovoltaic panels by June 2024.

Financial highlights

• 1H 2024 sales revenue reached PLN 13,914 million, up from PLN 12,093 million in 1H 2023.

• EBITDA for 1H 2024 was PLN 819.3 million, down from PLN 857.8 million in 1H 2023, with EBITDA margin decreasing by 1.2 percentage points year-over-year.

• Operating cash flow for 1H 2024 was PLN 1,402 million, compared to PLN 1,253 million in 1H 2023.

• Total assets increased 6.2% since December 2023 to PLN 11.0 billion; equity up 11.2% to PLN 6.2 billion.

• Employee benefit costs rose 30.6% year-over-year, reflecting headcount growth to 45,274.

Outlook and guidance

• Management expects store count to grow by a low double-digit percentage in 2024, with capex of PLN 1.5–1.6 billion.

• LFL sales growth in H2 2024 expected to be single-digit due to deflation and price competition.

• Ongoing focus on organic growth, profitability improvement, and renewable energy investments.