⚠ Integration Is Only an Advantage in One CategoryModerate threat

Dino Polska (DNP) — threat to the moat

Meat is 11,7% of revenue. The other four-fifths is bought exactly the way everyone else buys it.

Dino is vertically integrated in one category and a conventional retailer in every other.

Where the integration reaches (2025 revenue)Bought-in branded goods — 82%Own production — 12%Ordinary private label — 7%Split derived from disclosed own-production revenue and the 6,6% private-label share.
Dino is vertically integrated in an eighth of its revenue and a conventional retailer in the rest.

Products manufactured in-house were 3 945,3 million złoty of 33 634,2 million of revenue1 — 11,7%. Ordinary private label adds 6,6%2. The remaining four-fifths of what Dino sells is branded goods bought from FMCG manufacturers on terms set largely by scale, and Dino's scale is roughly a quarter of Biedronka's.

This bounds what the meat plant can do. It is a genuine differentiator at the fresh counter and it earns the processing margin on an eighth of revenue. It does not change the cost of a jar of coffee, and the jar of coffee is where most of the basket is.

It also means margin pressure arrives through a door the integration does not cover. When customers became more price-sensitive in the second quarter of 2026, the EBITDA margin fell from 7,54% to 6,98%3 — a movement in the bought-in majority of the range, not in the part Dino makes. Nor does owning a factory help with the costs that actually rose: employee benefits up 21,2% and depreciation up 23,4% in 20254, neither of which a meat plant addresses.

The measure is the in-house share of revenue. At 11,7%, rising slowly, the integration is a real but contained advantage. It would need to roughly double before it changed the shape of the group's margin.

References
  1. Moat Explorer calcProducts manufactured in-house were 3 945,3 million złoty of 33 634,2 million of revenue — 11,7%.
    Moat Explorer calculation - arithmetic on figures reported in Dino's own filings: gross margin (7 911 077 over 33 634 155), net margin for each year from 2017 to 2025, revenue per store (33 634 155 thousand złoty over roughly 3 000 stores), own production as a share of revenue (3 945 315 over 33 634 155), the share of plant output sold internally (3 945 315 less 264 656), selling costs as a share of revenue (5 576 262 over 33 634 155), and stores per distribution centre — FY2017-FY2025 · publ. September 2026 · source ↗
  2. ReportedOrdinary private label adds 6,6%.
    Dino Polska Management Board's Activity Report for 2025 - Section 3,2, description of the Group (Agro-Rydzyna, the wholly-owned meat processing plant at Kloda supplying the fresh counters, private label at 6,6% of network sales excluding its output, the eZebra internet business, and the direct sourcing arrangements with producers) — FY2025 · publ. March 2026 · source ↗
  3. ReportedWhen customers became more price-sensitive in the second quarter of 2026, the EBITDA margin fell from 7,54% to 6,98% — a movement in the bought-in majority of the range, not in the part Dino makes.
    Dino Polska Management Report for the first half of 2026 - 3 176 stores at 30 June 2026 (341 more than a year earlier), 86 openings in the second quarter, revenue of 9 531,4m złoty up 10,5%, like-for-like growth of 0,3% in the quarter and 2,2% for the half, and the EBITDA margin of 6,98% against 7,54% — H1 2026 · publ. August 2026 · source ↗
  4. ReportedNor does owning a factory help with the costs that actually rose: employee benefits up 21,2% and depreciation up 23,4% in 2025, neither of which a meat plant addresses.
    Dino Polska Management Board's Activity Report for 2025 - Section 4,1-4,3, results of operations (sales revenue of 33 634,2m złoty up 14,9%, gross profit and the 23,5% gross margin, the cost lines including employee benefits up 21,2% and depreciation up 23,4%, EBITDA, and like-for-like growth of 4,4%) — FY2025 · publ. March 2026 · source ↗
Sources
Generated September 24, 2026