HONG KONG, March 3, 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, today announced a profit alert for the year ended December 31, 2023 ("FY2023").
Based on the preliminary assessment of its unaudited consolidated management accounts of the Group for FY2023 (the "Management Accounts") and other relevant information currently available to the board of directors of the Company (the "Board"), the Group anticipates total revenues of no less than RMB3 billion for FY2023, compared to approximately RMB2.02 billion for the year ended December 31, 2022 ("FY2022"), representing year-over-year growth of no less than 48%; the Group expects to record a net loss of no higher than RMB29 million for FY2023, compared to RMB222.6 million for FY2022; the Group expects to record an Adjusted Net Profit (non-IFRS measure)1 of no less than RMB8 million, compared with an Adjusted Net Loss (non-IFRS measure) of approximately RMB113.8 million for FY2022.
The Board believes the anticipated strength of the Group's FY2023 operating results was mainly attributable to:
- The expansion of the Group's store network, as its total store count increased from 588 stores as at December 31, 2022 to 768 stores as at December 31, 2023.
- Continued revenue growth from the Group's existing stores and strong sales performance of the new stores in its new growth markets in FY2023.
- Further enhancements in the Group's profit margin due to improvements to its operational efficiency at both the store and corporate levels during FY2023.
Ms. Aileen Wang, CEO & Executive Director of DPC Dash, commented, "We are pleased to announce robust anticipated preliminary financial results for FY2023, with expected total revenues of no less than RMB3.00 billion and an expected Adjusted Net Profit of no less than RMB8 million. This solid performance reflects the successful strategic expansion of our store network, the strong performance of our existing stores and new growth markets, and our dedication to continuously optimizing our operational efficiencies. We are immensely proud of our team's efforts and confident that our strategic initiatives will drive our long-term growth and profitability."
As at the date of this press release, the Company is still in the process of finalizing the annual results of the Group for FY2023. The information contained in this press release 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 annual results of the Group for FY2023 may be different from the disclosure in this press release. Shareholders and potential investors are therefore advised to read carefully the annual results announcement of the Company for FY2023, which is expected to be published before the end of March 2024.
Non-IFRS Financial Measures
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) as profit/(loss) 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. Such non-IFRS financial 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 Ltd directly operates 800 stores across 29 cities in mainland China as of 31 January, 2024. The Company is the fastest growing among China's top-five pizza brands, as well as the third-largest in terms of 2022 revenue, according to a report by Frost & Sullivan in March 2023.
For more information, please visit www.dpcdash.com
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CONTACTS
DPC Dash Ltd Investor Relations:
DPC Dash Ltd
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ICR, LLC
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DPC Dash Ltd Media Relations:
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[1] The Company defines "Adjusted Net Profit/(Loss)", a non-International Financial Reporting Standards ("IFRS") measure, as profit/(loss) 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.
SOURCE DPC Dash Ltd
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