By Anna Pruchnicka

(Reuters) – DP Eurasia, which runs the Domino’s Pizza (NYSE:) model in Turkey and Russia, mentioned it plans to remain in Russia, however couldn’t give an outlook for the complete yr due to uncertainties linked to the warfare in Ukraine and inflation.

As many worldwide corporations restrict their publicity to Russia following the launch of what it describes as a “particular navy operation” on Feb. 24, DP Eurasia mentioned final month it could restrict additional funding within the nation.

Nonetheless, CEO Aslan Saranga instructed Reuters on Tuesday the corporate deliberate to proceed to function in Russia and that it had a accountability to stakeholders.

“We now have franchisees over there, half of the shops, even if you wish to shut these shops, we can’t,” he mentioned.

The corporate mentioned it couldn’t give an outlook for 2022, citing uncertainties over the influence of the Ukraine battle and excessive inflation in Turkey.

DP Eurasia, the most important pizza supply firm in Turkey and the third largest in Russia, has 188 shops in Russia and Saranga mentioned it had not seen any main change in client demand for the reason that begin of the warfare in Ukraine.

It has about 3,000 workers within the nation, in comparison with about 10,000 in Turkey, Saranga mentioned.

The corporate’s full-year adjusted earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) rose 58.5% to 208.4 million Turkish lira ($14.19 million), pushed by a powerful efficiency in Turkey and restoration in Russia.

It returned to a optimistic like-for-like development charge of 9.6%, serving to it to enhance adjusted EBITDA by 907% in Russia.

Russia is its second-biggest market, representing 26% of its system gross sales, which comprise gross sales each from its personal and franchised shops.

DP Eurasia, which additionally operates in Azerbaijan and Georgia, introduced the launch of a brand new espresso store and product model, COFFY and has opened 11 shops in Turkey.

Saranga mentioned the corporate examined the format throughout the pandemic and added the espresso is 30%-40% cheaper than its competitors.

“The launch of a brand new espresso store model, COFFY, in Turkey is an thrilling growth and permits DPEU to leverage its current infrastructure,” Liberum analysts wrote in a word.