The first half of 2012 saw several significant changes at Emperia Group, intended to enhance its growth potential and reinforce its market position. The key activities in this area included: completion of the process to select an investor for Emperia Holding's retail chain and the decision to continue its expansion, discontinuation of all investments at the Delima delicatessen format and consolidation of Emperia Group's IT companies.
Alongside completing the process to select an investor for the retail segment, Emperia Holding S.A. made a strategic decision to further systematically grow the Stokrotka retail chain as part of the Group's structure. Intensive works are on-going in cooperating with outside advisers, aimed at developing new, optimal logistics solutions. Further Stokrotka locations are set to be opened across the country in the second half of this year. There are currently 188 locations.
In August 2012, Emperia Holding's Management Board made a decision relating to the future of the Delima chain. Having analysed the financial performance of all nine stores in the chain, along with the current market conditions and forecasts, the Management Board decided to discontinue expansion of this store format and recognise provisions. As a result of this decision, some of the stores will be transformed into Stokrotka supermarkets. The planned activities also include lowering the delicatessen segment's operating costs by introducing assortment changes and renegotiating lease agreements, which currently generate additional expenses. Changes in employed are not planned, however. "We are focusing on investments in the promising supermarket segment. The decision to discontinue expansion of the delicatessen chain is a natural result of our new strategy," comments Artur Kawa, CEO Emperia Holding S.A.
As part of the new strategy, in August 2012, Emperia's Management Board also made a decision to merge its two IT companies - Infinite Sp. z o.o. and Emperia Info Sp. z o.o. The merged entity will operate under the Infinite brand, offering a wide range of IT products and services for the retail business, which should open it up to new opportunities for growing sales and improving financial performance.
As previously announced by the Management Board, Emperia Holding S.A. paid out a dividend of PLN 56.41 per share. The maximum amount resulting from the sale of companies from the distribution group Tradis was allocated to dividend. In addition, the Management Board along with the Supervisory Board adopted a new concept for buying back the Company's shares, which will be presented to shareholders at the end of September 2012.
"After the first half of 2012, Emperia has stable liquidity, and its financial ratios are at safe levels. We are convinced that the on-going restructuring changes, cost optimisation and planned expansion in the number of locations will soon yield benefits and will be reflected in increasingly stronger financial results," adds Artur Kawa.
Emperia Group generated PLN 978 900 000 in revenue from sales in H1 2012, up 7.68% compared with the same period last year, alongside PLN 36 600 000 in net profit.