Dino Polska 1H 2025 presentation: Store expansion accelerates as EBITDA growth rebounds

Introduction & Market Context

Dino Polska SA (WSE:WA:DNP), one of Poland’s fastest-growing food retailers, presented its financial results for the first half of 2025 on August 21, showcasing accelerated store expansion and a significant rebound in profitability. The company continues its aggressive growth strategy across Poland while maintaining its focus on proximity retailing with its "najbliżej Ciebie" (closest to you) approach.

The presentation comes amid a backdrop of moderating food inflation in Poland, which stood at 4.5% during the period, allowing the company to improve its margins while continuing to expand its footprint across the country.

Quarterly Performance Highlights

Dino reported substantial growth across key metrics for the first half of 2025, most notably accelerating its store expansion pace and reversing the previous year’s EBITDA decline. The company opened 147 new stores in 1H 2025, a significant increase from the 98 stores opened during the same period in 2024.

As shown in the following chart of key achievements, Dino delivered 14.8% year-over-year sales growth and 16.8% EBITDA growth, with a slight improvement in EBITDA margin:

The company’s sales momentum strengthened in the second quarter, with Q2 2025 revenue reaching 8,623 million PLN, representing a 19.0% year-over-year increase. This acceleration helped bring the total 1H 2025 sales to 15,977 million PLN, up 14.8% compared to the same period last year.

Like-for-like (LFL) sales growth was 4.8% year-over-year, slightly above the food inflation rate of 4.5%, but lower than the 6.4% LFL growth achieved in 1H 2024. The product revenue split remained relatively stable, with fresh food accounting for 41.4%, other food products at 46.6%, and non-food items representing 12.0% of total sales.

Detailed Financial Analysis

Dino’s EBITDA performance showed a remarkable turnaround, growing 16.8% year-over-year to reach 1,183 million PLN in 1H 2025, compared to a 1.6% decline in the same period last year. The EBITDA margin improved slightly by 0.1 percentage point, reversing the 1.2 percentage point contraction experienced in 1H 2024.

The following chart illustrates the quarterly EBITDA progression and margin development:

A detailed breakdown of the factors contributing to EBITDA growth reveals that the 170 million PLN increase was driven by multiple factors, as shown in the EBITDA bridge below:

From a balance sheet perspective, Dino maintains a conservative financial position with a slight increase in leverage. The Net debt/EBITDA ratio stood at 0.2x in 1H 2025, up from 0.1x at the end of 2024 but still well below the 0.8x level seen in 2022. Meanwhile, the interest coverage ratio continued to improve, reaching 16.0x in 1H 2025 compared to 15.7x in 2024.

Capital expenditures increased as a percentage of EBITDA, rising from 73% in 1H 2024 to 88% in 1H 2025, reflecting the company’s accelerated expansion strategy. Operating cash flow remained strong at 1,772 million PLN for the period.

Strategic Initiatives & Expansion Plans

Dino’s network expansion continues to be the cornerstone of its growth strategy. By the end of 1H 2025, the company operated 2,835 stores across Poland, with a total net sales area of 1,120 thousand square meters, representing a 13.5% year-over-year increase.

The following visualization shows the company’s impressive store growth trajectory and geographic distribution:

Dino’s strategic focus on sustainability is evident in its continued investments in renewable energy. As of 1H 2025, the company had equipped 2,679 stores with photovoltaic installations, adding 203 new installations during the period. The total capacity reached 109 MW, generating 56 GWh of solar electricity in 1H 2025 and reducing CO2 emissions by approximately 33 thousand tons.

Forward-Looking Statements

Looking ahead, Dino reaffirmed its commitment to organic store expansion through 2030, maintaining its forecast of 4.8% LFL sales growth for 1H 2025 and anticipating a 0.1 percentage point improvement in EBITDA margin year-over-year.

The company’s strategic roadmap is illustrated below:

Dino’s continued focus on proximity retailing, coupled with its aggressive store expansion and improving profitability, positions the company well for sustained growth in the Polish food retail market. The slight increase in leverage metrics suggests the company is investing more aggressively in its expansion plans, while still maintaining a strong balance sheet to support future growth.

Full presentation:

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