Hello and welcome to the DP Eurasia H1 trading update. Throughout the call, all participants will be in a listen-only mode, and afterwards there will be a question and answer session. Today, I am pleased to present Aslan Saranga, CEO, and Selim Kender, Chief Strategy Officer and Head of Investor Relations. Please go ahead with your meeting. Good morning, everybody. This is Aslan Saranga speaking. Welcome to our trading update for the six months ended 30 June 2021. I'm very happy with the performance of the company in the first six months. We have a strong momentum. We have opened 35 stores in the last one year. At the moment, the group has 789 stores. Group system sales have increased 72%. I would like to remind you that the inflation rate in Turkey is 17% and in Russia 4%-5%. Group system like-for-like is 53% for the last year. Some highlights about our group online system sales growth is 78%. Online delivery system sales as a share of delivery system sales is 78%. We have a strong liquidity position. We have TRY 110 million of cash at hand and additional available bank lines of TRY 186 million as at 30 June 2021. As I said earlier, trading performance across the group has continued its strong momentum throughout the first half of the year. Our Turkish operations have seen unprecedented demand during H1 2021, with a May-June like-for-like growth rate of 70%, driven mainly by online sales delivery and also tailwinds from a temporary reduction in the VAT rate to 1% from 8%, which was extended until the end of July. We have noted in our previous releases a COVID-inspired shift to home delivery. COVID vaccinations have been increasing at a steady pace in Turkey, as a result of which virtually all restrictions, including those on dining and curfews, have been lifted at the beginning of July. In our Russian operations, we have continued to see an improving trend with a May-June like-for-like growth rate of 33%. However, Russian vaccination rates continue to remain relatively low, and authorities in Greater Moscow instituted a ban on dining towards the end of June. There are also vaccination targets instituted for restaurants and their staff that need to be achieved by the middle of July and August for the restaurant to remain open for takeaway and delivery. Our online channels continue to be the main driver behind our like-for-like growth rates. Online system sales as a percentage of delivery system sales have reached 74% and 93% in Turkey and Russia, respectively, allowing the group to reach 78% on a consolidated basis. The increasing franchise demand since the middle of last year has resulted in 16 store openings in Turkey since the beginning of the year, with a very strong pipeline for the second half of 2021. In Russia, we have also added two stores in the first half. The group is emerging from the pandemic with a strong momentum. While the board is conscious of the potential continuing risks posed by the pandemic, we remain on target for our 2021 guidance in our markets, and the board expects the full year adjusted EBITDA for 2021 to be in line with expectations. Thank you for listening to us, and we will be happy to answer if you have further questions. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, if you have a question, that's zero one on your telephone keypad. There will be a brief pause while questions are being registered. Our first question comes from the line of Wayne Brown from Liberum. Please go ahead. Your line is now open. Morning, gents. Firstly, congratulations on an impressive H1. Just three questions from me, if you don't mind. Can you just clarify those inflation numbers you gave at the beginning? I think you said 17% and 4%-5%. My second question, if I may, if you can just walk me through price versus volume that was behind the like-for-like in both Russia and Turkey during the half. A third question, if I may be so bold. Early days in July. It's only been two weeks since restrictions have been eased in Turkey. Just what are you anecdotally seeing on the ground? What's the population doing? What are the trends, the full dynamic versus the online dynamic? Are you seeing a return back to normal, or are you seeing still a stronger online sales mix than you were before? Just trying to get an idea of what the population are fundamentally, what their habits are in the first two weeks of July. Thanks. Thank you, Wayne. Yes, you are correct. Inflation number is 17% in Turkey, 4%-5% in Russia. Sorry. 4.5%, not 0.5%. No. 4%-5%. Sorry. I thought I heard a decimal. Thank you. Yeah. About the prices versus volume in both markets, both of the KPIs are growing. In Turkey, I would say around 10%-15% is coming, like 1/4 of the growth is coming from orders. The rest of it is coming through ATP increases. Yet, although the inflation is 17%, the inflation in food costs and labor cost is a little bit high. We can say it's around 20%-25% level. In Russia, of course, it's very difficult to compare last year because last year was COVID. It was affected very much from the COVID. The growth is coming both from, mostly from the orders. If you compare to 2019 figures in Russia, we are still like 5%-10% below 2019 figures. About the trends in Turkey, things are getting normalized very fast in Turkey. That's what we see. It's the summer season. People were really fed up from COVID, so we see lots of people going to summer places. It's a vacation period, next two weeks in Turkey, so everybody is going to vacation places. What we see, we see a balancing situation in our business. Takeaway is going up, delivery is going down. Online sales is still very strong. Overall, sales levels first two weeks has stayed in the same level. I think it's a good signal. That means the online ordering levels will keep the same level if this will go on like it. Going back to takeaway and still staying in the same levels like the COVID levels in Turkey, I think it's a good sign for our business. I believe I answered all of your questions. Yeah. Can I have a follow-up, if you don't mind? Can you just remind me the margin difference between a eat-in order and an online order, clearly there's a labor differential there, but which one is more beneficial? Actually, as a percentage, we try to keep the profitability levels the same, both in carryout and takeaway. Every check price in delivery is higher. Of course, in the absolute terms, sending delivery, making delivery sales is more profitable in absolute terms. Sure. No, no. Thank you very much. Thank you. Ladies and gentlemen, once again, I remind you, if you do have a question for the speakers, please press zero one on your telephone keypad now. We currently have no further questions. I will hand back to the speakers for any further remarks. Thank you very much for listening to us. We hope to see you with our six months financial performance in the coming months. Thanks. Have a nice day. Thank you. This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.
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