Shares in one of the biggest frachisees of Domino's Pizza rose today after it said it had tripled its sales in Russia during the first half of the year.
London-listed Dp Eurasia, master franchisee of Domino's in Russia and Turkey, revealed an overall increase in profit and revenue for the period, with particularly strong growth in Russia.
Group sales were up 29 per cent for the period ended 30 June, with a 200 per cent increase in Russian sales.
But Turkey is still the group's biggest market, notching up a 10 per cent increase during the period to sales of 304.1m Turkish Lira (£65m).
Overall revenue was up 38.5 per cent to 289.8m Lira, while underlying earnings were up 26.4 per cent to 39.4m Lira.
Why it's interesting
Pizza, it seems, is resilient to gepolitical turbulence.
Although Turkey and Russia might be considered volatile markets, chief executive Aslan Saranga told City A.M. today that the business stands up to social and political change.
"Our like-for-like sales growth has been always strong," he said. "We are in a highly penetrated market of the young population. We know this market; we are selling tasty affordable pizza. In Turkey you can get a pizza for three dollars."
In Russia, the company's main store growth has been in Moscow. But Saranga said that the main focus for the next half will be moving to other regions.
The shift to mobile ordering also helped push up sales as online delivery made up half of all orders in the period.
What Dp Eurasia said
Saranga said: “We confirm that group performance remains in line with the board’s expectations for the full year and we look forward to our traditionally stronger second half with confidence as we continue to focus on growth by utilising our proven business model to drive value for our customers and shareholders.”