DPC Dash Ltd Reports Exceptional Growth in Financial Year 2024 Results

DPC Dash Ltd, the exclusive master franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, recently unveiled its impressive financial results for the year ending December 31, 2024. The company, listed as 1405.HK, has reported remarkable growth across several key performance indicators, highlighting its strong market position and strategic direction.

Strong Revenue Growth

In FY 2024, DPC Dash achieved revenues of RMB 4.31 billion, marking a significant 41.4% increase from RMB 3.05 billion in FY 2023. This surge in revenue is attributed to the company’s dedicated expansion efforts, including the addition of 240 net new stores, which has brought the total number of operating locations to 1,008 across 39 cities as of year-end. This robust growth reflects DPC Dash's commitment to expanding its footprint and enhancing consumer accessibility.

Improving Profitability Metrics

The company's store-level operating profit also showed a strong upward trend, climbing by 48.7% to RMB 624 million compared to RMB 419 million in the previous year. DPC Dash recorded a store-level EBITDA increase of 44.2% to RMB 831 million, with an EBITDA margin rise to 19.3%. These improvements illustrate the effectiveness of the company’s operational strategies focused on efficiency and customer satisfaction.

Adjusted EBITDA surged by 64.1% to RMB 495 million, demonstrating a significant enhancement in profitability that can be linked to improved cost management and the benefits of scaling operations. Most notably, DPC Dash achieved an adjusted net profit of RMB 131 million, an astounding increase of 1,394.2% over the previous year, indicating a decisive turnaround in financial performance.

Expanding Membership and Market Influence

DPC Dash's loyalty program has also seen substantial growth, with membership numbers rising from 14.6 million to 24.5 million. This 67.8% increase signifies a deepening customer engagement and the effectiveness of the company’s promotional strategies.

In terms of same-store sales growth, DPC Dash recorded a 2.5% increase, following 8.9% in FY 2023, reflecting stable demand amid the expanding store network. The strategic focus on menu innovation and enhanced service offerings has helped maintain customer loyalty during this expansion phase.

Digital Innovations and Industry Accolades

Throughout 2024, DPC Dash received multiple accolades, including the Best Digitalization Award and recognition as a Top 20 Digitalized Enterprise, further validating its commitment to integrating technology into operations. These recognitions highlight the company's innovative approaches in enhancing customer experience and operational efficiency in the competitive food service market.

The celebration of the grand opening of its 1,000th store in Chengdu marks another crucial milestone in the company’s growth trajectory, showcasing the successful implementation of its “Go-Deeper, Go-Broader” strategy.

Outlook for the Future

Looking ahead, DPC Dash plans to open approximately 300 net new stores in 2025, with a total expected capital expenditure for development around RMB 570 million. The company’s ongoing commitment to operational efficiency, alongside strategic site selection, aims to ensure sustainable growth and long-term value for shareholders.

In summary, DPC Dash Ltd's financial results for FY 2024 illustrate a remarkable performance marked by significant revenue growth, enhanced profitability, and strategic expansion initiatives. With strong brand recognition and an expanding market presence, the company is poised to build on this momentum in the years to come.