Emperia Holding, one of the largest trading groups in Poland, has launched a process aimed at auctioning off its retail business (retail subsidiaries) on attractive terms. According to the company’s Management Board the value of its retail companies (excluding real property) is around PLN 900 million. If the sale of the retail business is successful, Emperia expects to generate at least that amount as the price.
The timetable of auctioning off the retail business is as follows:
“We have recorded a lot of interest both among industry and financial investors in the retail segment. In the first two quarters of this year, seven Stokrotka supermarkets were launched. At several other locations the investment process is well under way. Further, the company is constantly on the look-out for new locations as well as being in talks with retail chains considering the idea of joining the Group,” said Artur Kawa, Chairman of Management Board, Emperia Holding SA.
In 2010, the Emperia Trading Group recorded a 7 percent increase in sales revenues to PLN 5.9 billion, with a concurrent improvement of both EBITDA and net earnings. EBITDA was up by 16.6 percent to PLN 205.8 million, and net earnings by 42 percent to PLN 98.5 million.
The Management Board of Emperia Holding SA recommended to the shareholders that dividend be distributed for 2010, totalling some 40 percent of the Group’s consolidated net earnings, which is two times more than dividend distributions so far (20%). The recommendation, which complies with Emperia’s new dividend policy published in the autumn of last year, will be submitted by the Management Board to the shareholders at the next General Meeting (29 June 2011).
The amount of dividend per share proposed to be distributed for 2010 is PLN 2.63. The cost to Emperia will be in excess of PLN 39.2 million. Starting from the 2010 profit distribution, the Management Board intends to recommend every year to the General Meeting dividend distributions of at least 40 percent.
Outline of Emperia Trading Group:
The Emperia Trading Group is one of the largest and most active trading groups in Poland. It engages in retail and wholesale distribution of food products, cosmetics and household chemical products, it is active in property management and development. Emperia, which has been present in the Polish market since 1990, operates nationally and has a workforce of nearly 14 thousand. Emperia Holding SA, a public company quoted on the Warsaw Stock Exchenge, is the Group’s holding company.
The Tradis Wholesale (Distribution) Group engages in wholesale distribution of FMCG products through cash&carry locations and Distribution Centres throughout Poland. The wide range of food products, cosmetics, and household chemical products, attractive trade terms, state-of-the-art IT and logistic systems, and continuous efforts to meet clients expectations make it the leading trade partner for over 50 thousand Polish retailers.
The subsidiaries of the Tradis Wholesale (Distribution) Group engage in distribution of FMCG products. In addition, the Group, in collaboration with Polish retailers, operates franchise chains of shops and supermarkets of varying formats. Tradis is also the strategic partner to Społem cooperatives, and jointly with them runs modern cooperative retail operations in Poland. As at 31 March 2011, the number of franchisers operating as part of Tradis Wholesale Division totalled 4,158.
The Tradis Wholesale (Distribution) Group (a member of the Emperia Trading Group) comprises the following companies: Tradis, Ambra (distribution of cosmetic and household chemical products), DEF (distribution of FMCG products), Detal Koncept (franchisor for Groszek and Milea chains), Euro Sklep, Lewiatan, and Koliber (drugstore chain), and PSD which, jointly with Społem Cooperatives, runs modern cooperative retail operations in Poland.
The operations of the distribution subsidiaries fall geographically or functionally into eight regions. They include 63 branches comprising distribution centres, service centres, and cash&carry locations of the aggregate area of some 306 thousand sq. m.
The Supermarket Division comprises supermarkets located in residential estates, mini shopping centres, and shopping malls. The supermarkets operated by Emperia’s retail division offer from 100 to 1,400 sq. m of selling space and from 4,000 to 10,000 assortment items, including retail products, cosmetics, household chemical products, alcohol, and fresh products: bakery products, meat products, fruit, and vegetables. Local products, typically produced in the region of store location, complement the offering.
Stokrotka Sp. z o.o. is one of the most rapidly developing retail chains in Poland. As at 3 June 2011, the number of Stokrotka/Delima locations operated by the retail division was as follows:
At the moment, the process of selecting a strategic investor for the division is under way by auction, and its completion is expected at the end of the first quarter of 2012. The efforts seek to ensure that the present rapid development of the retail division continues.
The Real Property Division is responsible for Emperia Trading Group’s properties. It invests exclusively in supermarkets, cash&carry locations, distribution centres, and mini shopping malls. The division manages Emperia’s real properties, procures new locations, and engages in real property development.
A number of awards and distinctions have been conferred upon the Emperia Trading Group, including the Pearl of Polish Stock Exchange 2009 title after the Group had been ranked seventh in the ranking list of Gazeta Giełdy „Parkiet”. Gazeta Finansowa ranked Emperia 30th among 500 Largest Companies in Poland and Puls Biznesu placed it 39th among Public Companies of 2009. Emperia is ranked 36th in Rzeczpospolita’s 500 List and 31st among Polityka’s Five Hundred for 2009. The Group has been placed second among TOP 50 of FMCG trade and third among 50 best Polish retailers by Detal Dzisiaj. In 2010, Tradis, the wholesale division of the Emperia Trading Group, was awarded the Golden Receipt prize by Polish retailers in the FMCG Wholesale Leader category, and the Stokrotka chain was awarded the Customers Golden Laurels in the National Supermarket Chain category.