Dino Polska Group reported impressive financial results for the year 2024, generating revenues of 29.27 billion PLN, reflecting a robust year-on-year growth of 14.1 percent. The company's operating profit saw an increase, reaching 1.908 billion PLN, while EBITDA stood at nearly 2.32 billion PLN. These results align closely with earlier forecasts, showcasing the group's strong performance in a competitive market.
The growth in revenues was primarily driven by a significant expansion of the group's operations, which included an 11.7 percent increase in the number of stores. By the end of 2024, Dino Polska operated 2,688 stores across Poland, marking a notable achievement in its retail footprint. The like-for-like (LfL) sales dynamics, which measure performance in existing stores, also showed positive results, with an increase of 5.3 percent. However, this figure was slightly below the company's initial expectations.
In a letter to investors, Michał Krauze, a member of the Dino Polska management board, noted, "In the past year, revenues reached 29.3 billion PLN, and their growth of 14.1 percent was primarily driven by the sale of fresh products." This statement underscores the company's focus on fresh produce sales as a key driver of its revenue growth.
Despite the positive overall results, Dino Polska faced challenges, particularly concerning its operating profit margin, which decreased to 6.5 percent from 7.5 percent the previous year. This decline was attributed to rising operational costs that pressured profitability. Krauze explained that the negative net price dynamics in the Dino chain did not reflect the overall food inflation in Poland, which was reported at 3.3 percent. This discrepancy was largely due to the restoration of the 5 percent VAT rate on food in April 2024.
Looking ahead, the company has ambitious plans for 2025, aiming for a high single-digit increase in LfL sales growth. Krauze stated, "Our goal for 2025 is to gradually rebuild the EBITDA margin. The expected higher revenue dynamics, combined with a slower increase in operational costs, should support this objective." This forward-looking strategy reflects Dino's commitment to maintaining its growth trajectory amid challenging economic conditions.
In 2024, Dino Polska opened 283 new stores, which is 13.2 percent more than the previous year and slightly above initial plans. This expansion is indicative of the company's strategy to increase its market presence and enhance customer access to its products.
The increase in store count and sales volume is expected to play a crucial role in the company's financial performance in the coming years. Krauze emphasized that the growth in sales volume and the anticipated return of internal inflation in net prices are key components of Dino's strategy to foster continued growth.
As the company navigates the complexities of the retail landscape, it remains focused on adapting to changing market conditions and consumer preferences. The management's commitment to enhancing the customer experience through a wider range of products, especially fresh items, positions Dino Polska favorably for future growth.
The challenges posed by inflation and operational costs will require careful management and strategic planning. However, with a solid foundation and a clear vision for the future, Dino Polska is poised to build on its successes and continue its upward trajectory.
In summary, Dino Polska's 2024 financial results showcase a strong performance, driven by revenue growth and store expansion. The company's plans for 2025 reflect a commitment to overcoming challenges and achieving sustained growth. As it moves forward, Dino aims to enhance its operational efficiency, rebuild its EBITDA margin, and continue to serve its customers effectively across its expanding network of stores.
