DP Poland has put out one of those results sets that looks better the deeper you read. The headline numbers are strong on growth and operating profit, but the statutory loss is much uglier. For retail investors, the big question is simple: is this a business genuinely improving, or just dressing up weak numbers with acquisition talk?
On balance, I think this was a positive update with a couple of important warnings attached. The underlying trading trend looks better, the franchise strategy is clearly accelerating, and the Pizzeria 105 deal has changed the scale of the group. But cash fell sharply, impairment charges were heavy, and investors should not ignore that.
DP Poland 2025 results show revenue growth, EBITDA improvement and a wider loss
For the year ended 31 December 2025, group revenue rose 15.0% to £61.7 million, while group system sales rose 11.3% to £61.4 million. System sales means total retail sales across corporate and sub-franchised Domino’s stores. Worth noting: this metric excludes Pizzeria 105 stores before conversion, so it does not capture the full acquired estate in the same way revenue does.
Like-for-like system sales, which measures the same stores over comparable periods, increased by 5.1% to £54.2 million. That matters because it shows growth was not just about opening or acquiring more sites. Existing stores also improved.
Adjusted EBITDA, which is a commonly used profit measure before interest, tax, depreciation and amortisation and stripped of certain one-off or non-cash items, increased 29.2% to £6.2 million. The adjusted EBITDA margin improved to 10.1% from 9.0%. Pre-IFRS 16 EBITDA, a version that strips out lease accounting effects, more than doubled to £2.6 million from £1.1 million.
| Key number | 2025 | 2024 |
|---|---|---|
| Revenue | £61.7 million | £53.6 million |
| System sales | £61.4 million | £55.2 million |
| Like-for-like system sales | £54.2 million | £51.6 million |
| Adjusted EBITDA | £6.2 million | £4.8 million |
| Loss for the period | £4.3 million | £0.5 million |
| Cash at year end | £1.4 million | £10.7 million |
Pizzeria 105 acquisition gives DP Poland much more scale in the Polish pizza market
The biggest strategic move in 2025 was the acquisition of Pizzeria 105 in March. At acquisition, it added 90 franchised pizza stores across Poland. By year end, that estate stood at 75 Pizzeria 105 franchised stores, after 13 were converted to Domino’s and 2 were closed.
The deal consideration was £7.9 million, made up of £5.8 million in cash and £2.1 million in equity, with 23,582,322 shares issued at 9.1 pence. Post-acquisition, Mastergrupa contributed £1.2 million of revenue and £0.7 million of profit before tax. That does not sound huge on its own, but strategically this is the real story of the year.
Why? Because DP Poland is no longer just opening stores one by one. It has bought a ready-made franchised network and is using it as a platform to roll out Domino’s faster across Poland. Management says pilot conversions delivered approximately 26.3% higher sales than the same period a year earlier when those stores were still trading as Pizzeria 105. If that holds up, the acquisition could be a very smart piece of deal-making.
DP Poland franchise-led model is becoming much more important for investors
The company sold 17 corporate-owned Domino’s stores to franchise partners during 2025. That pushed the number of franchised Domino’s stores from 13 to 43, meaning 33% of the Domino’s network was franchised at year end. By Q1 2026, that had already increased to approximately 35%.
This matters because franchising is usually more capital-efficient than owning every store yourself. A franchise-led model can mean lower central costs, less capital tied up in openings, and a bigger share of higher-margin royalty and supply chain income over time. DP Poland is explicitly aiming for more than half of its Domino’s system to be franchised by the end of 2027.
At year end, the group operated 210 stores in total:
- 129 Domino’s stores in Poland
- 6 Domino’s stores in Croatia
- 75 Pizzeria 105 franchised stores in Poland
It also opened 11 new corporate stores during the year and closed 7. That is still an expansion story, but one that is increasingly shifting from company-owned growth to franchise growth.
Why DP Poland’s statutory loss got worse despite stronger trading
This is the bit that could confuse investors. The group loss widened to £4.3 million from £0.5 million, even though revenue and EBITDA improved nicely. The short answer is that accounting charges hit hard.
Depreciation and amortisation rose to £5.5 million from £4.7 million, helped by the Pizzeria 105 acquisition and store expansion. Impairment of non-current assets jumped to £4.1 million from £0.6 million. The group also booked £493,148 of Pizzeria 105 advisory and conversion costs.
There was also a change in the way store impairments were assessed, moving from a cluster-based approach to individual store level. That produced a more granular view and an extra £469,000 impairment effect in the current period. On top of that, Croatia took a £260,733 goodwill impairment.
So yes, the reported loss is real. But it does not tell the whole commercial story. This looks more like a business absorbing acquisition, conversion and accounting pain while trying to build a bigger platform.
Cash fell sharply in 2025, and that is the main area investors should watch
Cash at year end dropped to £1.4 million from £10.7 million. Management says this was mainly due to the Pizzeria 105 acquisition, store rollout, conversion costs and other strategic projects. That explanation makes sense, but it is still a big fall and not something to brush aside.
The good news is DP Polska agreed new financing facilities with BNP Paribas in November 2025. These include up to £1.0 million of non-revolving debt, a £1.4 million overdraft and a £0.6 million revolving framework agreement. None of it was drawn at 31 December 2025.
Still, the balance sheet is not as comfortable as it was. The group moved from net funds of £2.3 million to net debt of £7.2 million. Also worth watching: trade and other receivables rose to £8.5 million, mainly because of store sales to franchisees and related loans granted.
DP Poland Q1 2026 trading update suggests the momentum has carried on
The post year-end update was strong. Group system sales increased 18.9% year-on-year in Q1 2026, group system orders rose 13.7%, and like-for-like system sales were up 9.0%. That is exactly what shareholders would want to see after a big acquisition year.
There were also 4 more Pizzeria 105 conversions in Q1, taking the total to 17. On top of that, the group completed the consolidation of its commissary operations into a single facility in February 2026, which management expects to improve labour productivity and reduce overheads.
My view on DP Poland after these 2025 final results
I think this was a good set of results overall, but not a clean one. The positives are clear: revenue growth, stronger margins, good like-for-like sales, a larger franchise base, and early evidence that Pizzeria 105 conversions can work. The renewed Master Franchise Agreement in Poland through 2035, with an option to extend to 2045, also gives the group a much longer runway.
The negatives are also clear: cash is much lower, reported losses widened sharply, and the Croatia business still looks a bit fragile. For me, this is a classic execution story now. If DP Poland can keep converting stores successfully, grow franchise income, and turn those EBITDA gains into better cash generation, the investment case gets stronger. If not, the balance sheet will start to matter a lot more.
In plain English, the business looks more valuable than it did a year ago, but it also carries more moving parts. That usually means more upside if management gets it right, and less room for error if it does not.
