Finance

DPC Dash Posts Remarkable Financial Turnaround in 2023, with Plans to Expand Further

HONG KONG, March 27, 2024 /PRNewswire/ -- DPC Dash Ltd ("DPC Dash" or the "Company"), the master franchisee of Domino's Pizza in Mainland China, Hong Kong, and Macau, recently reported its audited consolidated financial results for the fiscal year ending December 31, 2023. The company, listed as 1405.HK on the Hong Kong Stock Exchange, has seen a significant upturn in its financial health, showcasing strong year-over-year revenue growth and a positive swing from losses to profit.

Financial Milestones: A Year of Growth and Profitability

• Substantial Revenue Growth: DPC Dash announced its annual revenue accumulated to RMB3.05 billion, a notable 51.0% increase from RMB2.02 billion in the preceding year. This upsurge can be attributed to the company's effective expansion strategies, operational efficiencies, and heightened market demand.

• Store Expansion Strategy: In 2023, the company hit an important milestone, opening 180 new stores and expanding into 13 cities. By the end of the year, DPC Dash's run totaled 768 stores across 29 cities. Maximizing the existing market potential and moving into hitherto untapped areas contributed to the company's substantial increase in both revenue and market share.

• Store-Level EBITDA Margin: An impressive year-on-year increase in Store-Level EBITDA was observed, from RMB320.2 million to RMB576.6 million, contributing to an enhanced EBITDA margin, rising from 15.8% to 18.9%. These figures demonstrate the company's improved profitability and operational efficiency at the store level.

• Transforming Loss into Profit: Adjusted net profit reached RMB8.8 million for FY2023, marking a significant recovery from the adjusted net loss of RMB113.8 million in FY2022. This turnaround reflects the company's effective cost management and operational improvements.

Executive Insights

Aileen Wang, CEO & Executive Director of DPC Dash, expressed pride in the company's strong 2023 performance. The increase to RMB3.05 billion in total revenues and a store-level operating profit margin boost to 13.8% underscored the effectiveness of strategies deployed throughout the year. Wang credited the growth to the company's persistent efforts in penetrating new growth markets, broadening the store network, and enhancing operational efficiencies. She promised that DPC Dash would continue pursuing a strategy of deeper market penetration and broader geographic expansion to capture more of China's underserved pizza market.

CFO Helen Wu highlighted the year's significant revenue growth of 51.0% and attributed the solid financial performance to rigorous cost control measures. These measures yielded improved margins at both store and corporate levels. Wu pointed out the successful turnaround to generating an adjusted net profit of RMB8.8 million, asserting the company's continued commitment to optimizing cost efficiencies while leveraging economies of scale for lasting shareholder value.

Future Prospects and Strategic Plans

The Group has set an ambitious goal to inaugurate approximately 240 stores in 2024, eyeing the 1,000-store mark by the fourth quarter. The establishment of a new central kitchen in Wuhan is part of this expansive vision, with an estimated capital outlay of RMB20-25 million. Furthermore, a plan to relocate and upgrade the central kitchen in the northern region echoes the company's strategy for infrastructural improvement and growth.

Achievements and Expansions

Recently, the company made headlines as it was included in the 2023 Kincentric China Best Employers for its exemplary workplace. This acknowledgment points to a high level of employee satisfaction and organizational excellence. Following this, DPC Dash announced the opening of 10 new stores across eight new cities. These launches are pivotal to the firm's ambitious expansion strategy across Mainland China.

Financial Health: Solidified Standing and Market Dominance

Financial statements for FY2023 further affirm DPC Dash's strengthened market presence. With total assets amounting to RMB4.15 billion, alongside a reduced net loss, the company's financial health looks positive. The ability to maintain a high cash reserve while sharply reducing its borrowing showcases a strategic fiscal acumen. The company has also disclosed an impressive short-term liquidity condition, which is suggestive of its capability to sustain and accelerate its growth trajectory.

Upcoming Events

DPC Dash has scheduled a conference call to delve deeper into its financial results. Individuals interested in attending the call may access information on dial-in details and the conference ID via the company's official announcements. A facility for replaying the call provides further access to the information shared.

Forward-Looking Statements

In its prudent approach, DPC Dash has included forward-looking statements within its fiscal reports. These statements consider potential future events and are based on current expectations and projections about future events. The company acknowledges that actual outcomes could differ and advises shareholders to exercise caution when dealing with such forecasts.

About DPC Dash

DPC Dash, the designated master franchisee of Domino's Pizza, leads the pizza market in China through innovative approaches, a robust menu attuned to local tastes, and a superior delivery service. The company's vision, led by its experienced management team, aims to reinforce its growing footprint and continue scaling its successful business model. For more information on DPC Dash, visit their website at www.dpcdash.com. Official company announcements can be found at www.hkexnews.hk.

Contact Information

For investors and media interested in more information or witness the company's dynamic journey, DPC Dash Ltd shares contact information for investor relations and media relations, providing direct links to email addresses for easy communication.

In conclusion, DPC Dash Ltd's fiscal year 2023 has been notable, with its robust growth metrics, ambitious corporate strategies, and strong financial health. As the company strides forward, it remains cognizant of market dynamics and focused on delivering value to its customers, employees, and shareholders.

As the fiscal reports and future outlook depict, DPC Dash is on an accelerating path towards establishing a more formidable presence in China's pizza market. With a dedicated management team at the helm, the company stands poised to achieve greater milestones and broaden its horizons in the coming years.

This article contains all available information, links, and financial data relevant to the performance and strategies of DPC Dash Ltd for FY2023. For a deep-dive understanding of the company's financial journey and future ambitions, readers and investors are encouraged to reference the detailed fiscal documents and executive statements provided.

Note to Editors: All financial figures within this article have been sourced from DPC Dash Ltd's audited consolidated financial statements and are presented to be as reflective and accurate of the company's performance as possible.

Disclaimer: The information contained within the financial statements and forecasts is subject to change based on market conditions and other factors. The statements made and the data presented herein are based on the best available information as of March 27, 2024.

For further insights into DPC Dash Ltd's financial growth and operational strategies, the full financial statements and additional details can be accessed through the links provided, offering comprehensive data and deeper analytical perspectives on the company's financial health and outlook.

Investors and individuals seeking to understand the intricacies of the company's financial maneuvers and strategic growth can refer to the detailed documents that offer expansive coverage of DPC Dash Ltd's financial performance, complete with all corresponding figures and statements.

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For further information or inquiries regarding DPC Dash Ltd, please refer to the contact information listed within the article, spotlighting the company's open channels for corporate and media communications.

PR Source: DPC Dash Ltd

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