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DP Eurasia reported a rise in annual sales driven by growth in both Russia and Turkey despite a slow start to the year and weaker growth in Moscow.
For the year ended 31 December 2019, system sales grew 21.8% on-year, with Turkey delivering growth of 14.9% and Russia 34.8%.
Greater Moscow like-for-like performance was below plan due to 'new competitor store openings and increased aggregator activity,' the company said.
But the company said it had plans to restore growth.
'We have expanded our Russian marketing team and conducted an extensive marketing survey in 9 cities with 2,800 customers and updated our marketing and pricing strategy accordingly. Clearly defined measures such as cluster based pricing by region and store, building on the success in Turkey in H2 2019, will be in place starting in February to restore like-for-like growth.
Group online system sales grew 39.8% and the company touted further gains amid expectations to launch its loyalty programme in Russia in 2020, which was currently in the testing phase.
The company opened 41 stores in the year and said it remained on track to open to 25-to-30 stores in Turkey and 40-to-60 stores in Russia.
'The board remains confident in its growth strategy and expects the full year adjusted earnings (EBITDA) for 2019 to be in line with expectations,' DP Eurasia said.
At 8:25am: (LON:DPEU) DP Eurasia share price was -0.45p at 46.95p