In the third quarter of 2007, Emperia Holding S.A., one of the largest Polish FMCG retail and wholesale groups, generated revenues at the level of PLN 1.21 billion, up by 241.8 percent on the same period of the previous year. The Company’s net profit stands at PLN 15.5 million, up by 150 percent on the third quarter of 2006. Cumulative revenues after three quarters of 2007 reached PLN 3.38 billion (up by 232.5 percent on three quarters of 2006 of PLN 1.02 billion) and net profit totalled PLN 64.8 million (up by 222.4 percent).
The key events of 2007:
The Second Public Offering completed – in October Emperia completed the second public offering on the Warsaw Stock Exchange, raising PLN 232 million. The rights to the L series shares and the H-K series shares have been listed on the Warsaw Stock Exchange since 24 October 2007. The offering generated a lot of interest among the investors. In the book-building process offers to buy the shares in Emperia Holding exceeded threefold the number of shares available to the institutional investors. The final issue price was set at PLN 155, that is over in current listing price. The funds raised on the stock exchange will be applied to finance takeovers of smaller and larger FMCG companies. The acquisition expenses in 2007-2008 will total over PLN 200 million. The aggregate projected investment outlays of Emperia Holding in 2007-2008—including intensive organic growth of the group—stand at over PLN 500 million.
Consolidation efforts – incorporation of 8 companies in 2007:
° 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
Strong Sales and Financial Performance
“The consistent efforts as part of the consolidation and organic growth strategy have made Emperia Holding a leader of the Polish FMCG market. The robust financial performance in the quarter please not only the company but also the investors. The attractiveness of the second public offering of Emperia Holding has provided an incentive to take up further challenges of the far-reaching investment programme” – said Artur Kawa, Chairman of Management Board of Emperia Holding.
Emperia Holding is pursuing closely the strategy of consolidation of the Polish FMCG retail and wholesale market. Following the takeover in 2006 of the BOS Group of Companies (56 branches and 81 outlets in eastern and north-western Poland), in July of this year the Group incorporated Społem Tychy (32 retail outlets located in the Śląskie Region), in September the Centrum companies (13 retail outlets in the Warmińsko-Mazurskie Region), and Maro-Markety (18 outlets in the Wielkopolskie and Opolskie Regions). In addition, in October Emperia Holding incorporated Euro Sklep Sp. z o.o. in Bielsko-Biała (258 outlets). In June the decision was taken to acquire 100 percent of shares in the wholesale companies of Sydo in Wrocław and of Alpaga Xema in Poznań. The Company is planning further acquisitions and is in well-advanced negotiations with partners desiring to join Emperia Holding.
Company Highlights:
Emperia Holding is the seventh largest retail and wholesale company in Poland, 44th on Rzeczpospolita’s 500 List and 39th on Polityka’s Five Hundred list in 2006.
The Company is given strong ratings by analysts who consider investment in its shares to be a secure investment. During the second public offering of Emperia Holding, the total offers by investment and pension funds in the book-building process trebled the number of shares available to institutional investors.
The operations of Emperia Holding S.A. are organised and divided into two major businesses: retail business and wholesale (distribution) business, employing a workforce of over 10,000.
The retail business comprises the following chains:
Stokrotka – 107 supermarkets, including 3 Stokrotka Premium deli supermarkets;
Groszek – 554 franchise outlets;
Lewiatan Podlasie – 143 outlets;
Jaskółka and Milea – 32 partner outlets;
Społem Tychy – 32 partner outlets;
Centrum – 13 outlets;
Maro-Markety – 18 outlets operating under the Lewiatan Podlasie brand;
Euro Sklepy – 258 outlets;
Polka – 70 outlets.
The wholesale (distribution) business is comprised of 9 subsidiaries (Eldorado, BOS, DLS, Sygel-Jool, DEF, Express Podlaski, Sydo, Alpaga-Xema and Arsenal, an exporting and importing arm). In aggregate the subsidiaries operate 68 distribution branches, including 58 cash&carry facilities, totalling some 232,000 sq. m in area.