Despite a difficult macroeconomic backdrop, Emperia Group improved its financial results in the first quarter of 2013. EBITDA reached PLN 23.7 million and was up 3.9% on the same period last year. Revenue from sales was PLN 493 million, up 0.33%. The Group's net profit came in at PLN 13.7 million, down 47.7%. Earnings were most impacted by a nearly PLN 10 million decrease in interest income after the payment of last year's dividend. Of particular note is the strong performance of the retail segment, which accounts for nearly 98% of Group revenue.
In Q1 2013, in line with the adopted strategy, Emperia Group concentrated its efforts around reinforcing the Group’s position in its core business - FMCG retail.
In the supermarket segment the "New and even better Stokrotka" strategy was commenced, which aims to make the Stokrotka supermarket concept more customer-friendly and create a more effective operational model. The process of simplifying the organisational structure, optimising store costs and reducing central costs was continued. At the same time, commercial agreements with producers were being re-negotiated and works continued on building an in-house logistics system based on a central warehouse located in Teresin near Warsaw and a network of regional warehouses, serving as re-loading points, located throughout the country. The system's design will make it possible to expand it, as well as the entire Stokrotka chain, in the coming years. The system is set to launch in its entirety in July 2013.
Stokrotka Sp. z o.o., which is the key company in the retail segment, continued its organic growth. Three new Stokrotka supermarkets were opened: in Wrocław, Warsaw and Włocławek.
In the IT area, the merger of Emperia Group's IT companies was completed on 2 January 2013. Thanks to the consolidation, Infinite will be able to fully utilise the management resources and realise its growth potential, all the while offering a wide range of complementary IT products and services to its customers.
On 11 March 2013, previously announced changes in Emperia Holding S.A.'s Management Board were implemented. Artur Kawa, who had been the Company's CEO for 18 years, was appointed by the General Meeting on 10 April 2013 to Emperia Holding S.A.'s Supervisory Board, taking up the position of the Chairperson. The existing Vice-President of Emperia Holding S.A.'s Management Board, Dariusz Kalinowski, was appointed the CEO. Cezary Baran, a long-time employee of Emperia, was appointed as the Vice-President of the Management Board and Finance Director.
Together with subsidiary P1 Sp. z o.o., Emperia Holding S.A. commenced a buy-back programme in April 2013. As at 10 May 2013, the total number of shares bought back was 628 328, constituting 4.16% of Emperia's share capital.
Additional information: Lilianna Bonecka, +48 502 004 004, lilianna.bonecka@emperia.pl
Information about Emperia Group:
Emperia is a dynamic and reputable Polish group focused on the FMCG retail segment.
Founded in 1990, Emperia has been creating retail history in Poland for 23 years. Emperia Group operates in three areas: FMCG retail, IT and property. It employs 6 500 workers.
The Group's operations are coordinated by Emperia Holding S.A., a company that has been listed on the Warsaw Stock Exchange for 12 years. Emperia Holding S.A. is responsible for developing strategy and monitoring progress at all of Emperia Group's companies.
Retail segment – comprises the operations of Stokrotka, Maro Markety and PSS Tychy.
Stokrotka Sp. z o.o. is a company with Polish capital and rich traditions in Polish retail. Founded in Lublin in 1994, the company operates throughout the country. The first Stokrotka supermarket was founded in Łęczna near Lublin in 1996. The chain currently consists of 203 stores.
Stokrotka's typical sales area is 400 - 800 sqm, depending on the market's needs and conditions, however the chain also includes profitable locations that are either smaller or bigger than this. Stokrotka's total sales area is 126 000 sqm. Every supermarket has a total of 26 000 assortment items. They offer a wide array of fresh products: meats, fruits and vegetables, baked goods, dairy, chemical products, household cleaners, as well as alcohol and wines from all over the world. Stokrotkas also offer local products from regional suppliers. On 1 March 2013, Stokrotka unveiled its new strategy - "A new and even better Stokrotka." The in-house logistics system is a significant element of the new strategy. The system is set to launch in its entirety in July 2013.
In 2013, the Stokrotka supermarket chain was named the 2013 Service Quality Star in the 6th edition of the Polish Service Quality Programme and was included in the elite group of the 100 Friendliest Companies in Poland. The award is given to companies that place customer service as their top priority and is testimony to the effectiveness of corporate standards and management.
IT segment – since the consolidation of the Group's IT companies, completed in 2012, the IT operations are carried out by Infinite.
Infinite Sp. z o.o. offers a wide range of technological solutions for both large and small manufacturing and retail companies. The company develops solutions for supporting strategic business processes, electronic data exchange and document workflow. It provides B2B integration solutions for transaction optimisation through automating relations between business partners. Infinite is present in Poland and in certain other European markets: Croatia, Romania, Germany, the Czech Republic, Slovakia, Hungary and Bulgaria.
The property segment manages Emperia Group's property assets. The segment invests exclusively in facilities such as supermarkets and mini shopping galleries. It manages Emperia's properties, procures new locations and executes development projects.