HONG KONG | DPC Dash Ltd, Domino's Pizza's exclusive master franchisee in Hong Kong and Mainland China, has announced a positive profit alert for the six months ending June 30, 2024.
Based on the preliminary assessment of the unaudited consolidated management accounts of the Group for 1H2024 and other relevant information currently available to the board of directors of the Company, DPC Dash anticipates a total revenue of no less than RMB2.00 billion for 1H2024, representing a year-over-year growth of no less than 45.0 percent from approximately RMB1.38 billion for the six months ended June 30, 2023.
DPC Dash has expected 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.
"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," said Aileen Wang, CEO and Executive Director of DPC Dash.
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