⚠ Branded Ranges Hand the Margin to the BrandModerate threat

Dino Polska (DNP) — threat to the moat

With private label at 6,6%, somebody else sets most of Dino's cost of goods — and Biedronka buys four times as much.

Selling other people's brands means negotiating with other people's pricing.

Gross margin, first half (%)23,8%H1 202523,7%H1 2026Dino Polska management report, H1 2026; cost of sales 76,3% of revenue against 76,2%
The gross margin slipped a fifth of a point: the brands and the price policy set it, not Dino.

With private label at 6,6% of sales excluding the meat plant1, the overwhelming majority of what Dino sells is bought from FMCG manufacturers at prices those manufacturers substantially set. Dino's scale helps — the company sources most products directly from producers or their main representatives, and notes that the large and growing volumes it orders improve its terms2 — but scale in this market belongs first to Biedronka, which is roughly four times larger.

The filing states the exposure directly: Dino may be unable to pass higher purchase prices through to retail prices because of competitive or business conditions, which may have a significant adverse effect on operations3.

That is not hypothetical. Gross margin held at 23,5% in 20254, but the EBITDA margin fell to 6,98% in the second quarter of 2026 from 7,54%5 as costs rose faster than Dino could recover them. The squeeze came from below the gross line rather than through it — employee benefits up 21,2%, depreciation up 23,4%6 — which is the shape of a retailer that is buying well and cannot cover what it costs to sell.

The falsifier is gross margin. It has been remarkably stable, which says the supplier relationship is working. A fall of a point or more, sustained, would mean the largest buyer in the negotiation is no longer Dino.

References
  1. ReportedWith private label at 6,6% of sales excluding the meat plant, the overwhelming majority of what Dino sells is bought from FMCG manufacturers at prices those manufacturers substantially set.
    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 ↗
  2. Third-party estimateDino's scale helps — the company sources most products directly from producers or their main representatives, and notes that the large and growing volumes it orders improve its terms — but scale in this market belongs first to Biedronka,...
    Polish grocery market coverage, 2026 - Biedronka at roughly a quarter of the market and approaching 4 000 stores, Lidl's thousandth Polish store opened 23 July 2026, Zabka's record 1 394 openings in 2025, and discounters at roughly 39% of grocery spending — 2026 · publ. 2026 · source ↗
  3. ReportedThe filing states the exposure directly: Dino may be unable to pass higher purchase prices through to retail prices because of competitive or business conditions, which may have a significant adverse effect on operations.
    Dino Polska Management Board's Activity Report for 2025 - Section 5, risks and threats (the inability to pass higher purchase prices into retail prices given competitive conditions, extreme weather affecting supplies to distribution centres and stores, and the factors governing future store openings) — FY2025 · publ. March 2026 · source ↗
  4. Moat Explorer calcGross margin held at 23,5% in 2025, but the EBITDA margin fell to 6,98% in the second quarter of 2026 from 7,54% as costs rose faster than Dino could recover them.
    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 ↗
  5. Moat Explorer calcGross margin held at 23,5% in 2025, but the EBITDA margin fell to 6,98% in the second quarter of 2026 from 7,54% as costs rose faster than Dino could recover them.
    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 ↗
  6. ReportedThe squeeze came from below the gross line rather than through it — employee benefits up 21,2%, depreciation up 23,4% — which is the shape of a retailer that is buying well and cannot cover what it costs to sell.
    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