Emperia Holding S.A., one of the largest Polish FMCG wholesale and retail trading groups.
On 14 November, Emperia Holding S.A., one of the largest Polish FMCG wholesale and retail trading groups, was nominated in the Mergers and Acquisitions category of the Polish edition of Best of European Business (BEB) 2007 competition, and found itself rubbing shoulders with such distinguished companies as PKN Orlen S.A. (winner), Asseco Poland S.A, Cersanit S.A., and Poilimex-Mostostal S.A.
Best of European Business seeks to award the best and the most effective European businesses. In the third edition of the competition, 26 Polish companies competed for the prize in 5 categories: Growth – Large Companies, Growth – Medium-Sized Companies, International Competitiveness – Large Companies, International Competitiveness – Medium-Sized Companies, and Mergers and Acquisitions. In addition to the national editions hosted by such EU countries as Belgium, France, Spain, Holland, Germany, Poland, Portugal, Great Britain, and Italy, also an all-European competition will be held.
“Being in such distinguished corporate company was a true honour for us. The nomination confirms Emperia Holding as the leader of the FMCG sector consolidation. In 2007 alone, our Group has incorporated 8 companies and with several others talks are well under way. All our efforts are motivated by the desire to increase the value and attractiveness of Emperia Holding for our shareholders and potential investors. We are convinced that they will appreciate the efforts of the Group’s subsidiaries,” said Artur Kawa, Chairman of Management Board, Emperia Holding S.A.
The consolidation efforts of Emperia Holding in 2007 – 8 companies incorporated into the Group:
° PSS Tychy – July 2007
° Sydo – August 2007
° Alpaga Xema – August 2007
° Centrum – September 2007
° PHU Mariola – September 2007
° Maro-Markety – September 2007
° Euro Sklepy – October 2007
° Sklepy Polka – November 2007
In the third quarter of 2007, Emperia Holding generated PLN 1.21 billion in revenues, up by 241.8 percent on the same period last year. The net profit of the Company was PLN 15.5 million, up by 150 percent on Q3 2006. The cumulative revenues after three quarters of 2007 stand at PLN 3.38 billion (up by 232.5 percent on three quarters of 2006 of PLN 1.02 billion) and net profit at PLN 64.8 million (up by 222.4 percent).
In October Emperia placed the second share issue on the Stock Exchange in Warsaw, raising PLN 232.5 million. The rights to the L series shares H, I, J and K series shares have been listed on the Stock Exchange in Warsaw since 24 October 2007. The Company’s securities generated a lot of interest among investors. Book building produced demand three times over the number of shares offered as part of the institutional tranche. The final issue price for the shares was set at PLN 155, that is above the current price of shares on the stock exchange. The funds raised by the share issue will finance FMCG sector acquisitions. The acquisition expenditures in 2007-2008 will be over PLN 200 million. The total projected investment expenditures of Emperia Holding in 2007-2008, taking into account the intensive organic growth of the holding, will be nearly PLN 500 million.
Company Background Information:
Emperia Holding is ranked seventh among the largest trading businesses in Poland, 44th on the Rzeczpospolita daily 500 List, and 39th on Polityka’s Five Hundred list for 2006.
The Company is highly rated by stock analysts who consider investment in Emperia Holding shares to be a secure investment. During the second public offering of Emperia Holding shares, the aggregate book building subscriptions of investment and pension funds were three times over the number of shares offered as part of the institutional tranche.
The operations of Emperia Holding S.A. fall into two business lines: retail and wholesale, boasting a workforce of over 10,000 between them.
The retail business comprises the following chains:
Stokrotka – 107 supermarkets, including 3 Stokrotka Premium deli supermarkets;
Groszek – 554 retail franchises;
Lewiatan Podlasie – 143 retail outlets;
Jaskółka i Milea – 32 retail outlets;
Społem Tychy – 32 retail outlets;
Centrum – 13 retail outlets;
Maro-Markety – 18 retail outlets operating under the name of Lewiatan Podlasie;
Euro Sklepy – 258 retail outlets;
Polka – 70 retail outlets.
The wholesale business comprises 9 subsidiaries (Eldorado, BOS, DLS, Sygel-Jool, DEF, Express Podlaski, Sydo, Alpaga-Xema, and an importing and exporting arm, Arsenal). In aggregate, these companies operate 68 distribution branches, including 58 cash&carry locations, offering the total area of some 232,000 sq. m.