DPC Dash (1405) H1 2024 earnings summary

Executive summary

• Revenue grew 48.3% year-over-year to RMB2,041.5 million for 1H2024, driven by store expansion and higher average daily sales per store.

• Net profit attributable to owners reached RMB10.9 million, up 24.6% year-over-year, with adjusted net profit after tax turning positive at RMB51 million from a loss last year.

• Store count increased by 146 net new stores to 914 across 33 cities, including entry into 4 new cities, with new growth markets contributing 61% of total revenue.

• Loyalty membership reached 19.4 million as of June 30, 2024, with members contributing 63.6% of total revenue.

• Achieved 28 consecutive quarters of positive same-store sales growth (SSSG).

Financial highlights

• Store-level operating profit rose 59% year-over-year to RMB296.2 million, with margin improving to 14.5%.

• Store-level EBITDA increased 53% to RMB393.9 million, with margin up to 19.3%.

• Adjusted EBITDA surged 83.7% to RMB233.4 million, with an 11.4% margin.

• Average daily sales per store increased to RMB13,515 in 1H2024.

• Net cash from operating activities was RMB376.8 million, up from RMB174.8 million.

Outlook and guidance

• Targeting approximately 240 new store openings in 2024, with 146 net new stores opened in H1 and 31 more by August 20, 2024.

• Plans to open 300–350 stores annually in 2025 and 2026.

• Focus on deeper penetration in existing cities, expansion into new markets, and improving cost efficiency.