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Pizza firm DP Eurasia ups growth forecasts on strong demand

Pizza firm DP Eurasia ups growth forecasts on strong demand

FILE PHOTO: A staff member prepares pizzas at a Domino's Pizza restaurant in Moscow, Russia, July 14, 2017. Picture taken July 14, 2017. REUTERS/Sergei Karpukhin/File Photo

DP Eurasia, which runs the Domino's Pizza brand in Turkey and Russia, hiked its full-year guidance on Tuesday as it expects strong demand to continue.

"The strong like-for-like performance achieved in Turkey in the first half of the year and the expectation of continued buoyant trading enables raised guidance for full-year like-for-like growth rates in Turkey," it said in a statement.

It now expects like-for-like growth in Turkey, its biggest market, at 35-40per cent compared to 21-25per cent previously, while adjusted EBITDA (earnings before interest tax, depreciation and amortisation) is now likely to be slightly ahead of the market's current expectations.

The company's shares, which have risen 99per cent so far this year, jumped 6per cent to a two-year high.

Its first-half adjusted EBITDA rose 129.7per cent to 98 million Turkish lira (US$11.83 million).

DP Eurasia said it saw unprecedented demand in Turkey, with like-for-like sales growing 65per cent in the first half.

"Our Turkish business continues to expand in record breaking fashion despite the challenging inflationary environment that we have been experiencing," DP Eurasia said.

Turkish inflation stood at 19.25per cent in August after a year-long rise.

The company's Russian business returned to profit in the first half with an adjusted EBITDA of 12.9 million Turkish lira compared with a loss of 3 million lira a year before.

DP Eurasia said the Russian business continues to show encouraging signs of improvement and added that both markets were operating without restrictions.

(US$1 = 8.2833 liras)

(Reporting by Anna Pruchnicka, editing by Louise Heavens)

Source: Reuters

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