Page 97 - TURKRptOct19

DP Eurasia also reported an adjusted margin for earnings before interest tax, depreciation and amortisation (Ebitda) of 7.2%, compared to 7.9% a year earlier. Margins in Russia, which accounts for 39% of system sales, moved down to 3.4% from 4.8%.
System sales, made up of sales at both its corporate and franchised stores, climbed 26.4% to Turkish lira (TRY) 645.4mn ($112.3mn). The advance was driven by new store openings, DP Eurasia said.
The company said that in Russia it was set to acquire 15 regional stores from franchisees and adjust its approach for growth in the regions. The number of Russian franchise stores was 86 in the first-half. That accounted for 46% of DP Eurasia’s portfolio in the country.
DP Eurasia noted that in Turkey, where annual inflation was around 15%, it was able to keep passing on higher costs to the customers. Also in Turkey, it increased the adjusted Ebitda margin to 10.4% from 10.2%. Like-for-like growth was 7.7%.
“Our main strategy in response to increased inflation in Turkey has been to continue to increase our prices to preserve margins, which has not had a material effect on order volumes,” DP Eurasia said in a statement quoted by Reuters.
The chain, one of the international franchise operators for Domino’s Pizza Inc, has expanded rapidly in recent years, opening an average 70 stores a year from 2011 to 2018 and doubling sales between 2014 and 2018.
The group said its Ebitda, excluding IFRS 16, climbed to TRY46.4mn from TRY40.3mn a year before.
9.2.6 Agriculture corporate news
● Coca Cola Icecek
● Others
Cagla Cikolata, which produces chocolates, wafers and confectionery, has been sold to Saudi Arabia-based Alyan Group, Turkish business weekly Ekonomist reported.
Alyan Group has taken full control of the local company, the magazine said, without providing financial details.
Cagla Cikolata’s revenues stood at $10mn last year. Founded in 1978, the company exports its more than 200 products to 70 countries. Its facilities in the western provinces of Sakarya and Izmit, near Istanbul, annually produce 20,000 tonnes of chocolate and 10,000 tonnes of wafers.
The size of the Turkish confectionery market is estimated at $3.5bn.
97 TURKEY Country Report October 2019 www.intellinews.com