By Federica Mileo and Valentine Baldassari
(Reuters) -DP Eurasia, which runs the Domino’s Pizza brand in Turkey and Russia, said on Friday its sales jumped 66% in the first six months of the year after it launched cheaper products to cope with inflation.
As consumers’ living costs soar, the group’s new launches included a small “pizzetta” priced at 19.99 Turkish lira (around $1).
Before adjustments for hyperinflation in Turkey, sales at the group’s own stores and franchise outlets rose to 1.75 billion Turkish lira ($94.41 million) in January to June, with growth of 58.9% in Turkey and 76.8% in Russia.
The group also reported earnings adjusted for hyperinflation in Turkey for the first time. After this, sales at the group’s own stores and in franchise outlets rose only 11.2%, and fell 3.4% in Turkey.
In Turkey, DP Eurasia’s largest market, the lira depreciation and economic impact of the war in Ukraine has sent the annual inflation rate to a 24-year high.
In Russia, the group’s second-biggest market, DP Eurasia had 171 stores as of September compared to 184 at the end of June and said it continued to monitor the geopolitical situation.
While many Western companies including McDonald’s and Pizza Hut cut ties with the Russian market after Moscow’s invasion of Ukraine began on Feb. 24, DP Eurasia said in April it planned to continue its operations in Russia, but would limit investment in the country.
($1 = 18.5415 liras)
(Reporting by Federica Mileo and Valentine Baldassari in Gdansk; editing by Barbara Lewis)
