Growth continues, losses persist

DP Poland (LSE:DPP) (AIM: DPP), the Domino's Pizza master Franchisee for Poland and Croatia, has told investors that system sales growth stayed in double digits in the first half of 2026. Group system sales were £34.8 million, up 17.5% in constant currency, and system orders rose 11.5% to 2.7 million. The company sits in the FTSE AIM All Share index as one of the few listed pure plays on Eastern European pizza delivery, and its story is still about scale rather than profit.

Business model

DP Poland operates and sub-franchises Domino's stores, largely in Poland, with a small presence in Croatia. At the end of 2025 LSE:DPP operated 210 stores: 129 Domino's in Poland, six Domino's in Croatia and 75 franchised Pizzeria 105 stores in Poland. In March 2025 it acquired Pizzeria 105, which added 90 franchised stores, and it has been converting those sites to the Domino's brand. It has also sold corporate stores to franchisees, shifting towards a more asset-light mix.

First-half trading

The trading update said the Domino's network had reached 139 locations, with franchisee-owned stores making up 38% of the estate. Five Pizzeria 105 stores were converted during the period. Management expects double-digit system sales growth to continue in the second half, helped by network expansion, further conversions and initiatives to lift order growth.

The 2025 numbers

Full-year 2025 results, published on 28 May 2026, showed Revenue up 15.0% to £61.7 million and system sales up 11.3% to £61.4 million. Like-for-like system sales rose 5.1%. Adjusted EBITDA increased 29.2% to £6.2 million, but the statutory loss widened to £4.3 million from £0.5 million, reflecting impairments, higher Depreciation and Amortisation linked to the Pizzeria 105 deal, and one-off Acquisition and conversion costs. Year-end cash was £1.4 million, against £10.7 million a year earlier. Facilities agreed with BNP Paribas Bank Polska in November 2025 were undrawn at year end. First-quarter 2026 system sales grew 18.9%, with like-for-like growth of 9.0%. Shares fell 5.2% to 7.11p on the day of the annual results.

Sector and index context

Quick-service restaurants and delivery remain competitive in Poland, where the Domino's Brand competes with local and international chains and with delivery platforms. Consumer spending, wage Inflation and ingredient costs all affect margins. On AIM, DP Poland (LSE:DPP) is a small-cap consumer name whose shares trade at pence rather than pounds, which makes them sensitive to news about funding and profitability. Reporting in sterling while earning locally adds currency exposure.

Key risks

The most obvious risk is financial: low year-end cash and a statutory loss mean LSE:DPP depends on delivering cash generation from a growing estate, or on drawing its bank facilities. Conversions of Pizzeria 105 stores carry execution risk and costs, and slower order growth in the second quarter shows that comparisons can become harder. Franchisee health matters more as the franchised share of the estate rises. Currency moves, input cost inflation and labour costs can compress margins, and further fundraising cannot be ruled out.

What to watch next

Investors will look for the pace of Pizzeria 105 conversions, the like-for-like trend after the second-quarter slowdown, and any figures on EBITDA and cash from the half-year results. Updates on the new bank facilities and store openings in Poland and Croatia will also be closely followed.