Results Dino Polska: Increasing My Stake
Dino Polska has announced earnings below expectations of analysts. Stock price is down, but the expected long-term return increased. I have added to my position.
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Yesterday Dino Polska announced their results and as mentioned already in the portfolio update of July I was intending to add to my position. That is what I did this morning, adding shares for PLN 312.00, which makes my average purchase price PLN 352.55. Dino Polska is now 12% of my portfolio in total.
The results of Dino Polska were a mixed bag. Sales increased by 15.1% YoY, also as a result of 98 stores opened this year. However EBITDA declined by 1.6% YoY. This is really related to severe price competition in current market environment. What is important in such a situation is to compare the results of Dino with competitors. Main competitor Bedrionka reported a revenue decline of almost 30% and a negative like-for-like sales (LFL). For Dino LFL increased by 6.4%. This clearly shows Dino is not doing that bad given the current market situation. In the end this situation is temporary and in the meantime managemet will continue executing on the expansion of new stores.
As the valuation of Dino Polska is even lower now with a historical low forward P/E, I am happy to add to my position.
Hopefully you have enjoyed this update of my portfolio. Feel free to like the post and share it with friends!
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