Despite unfavourable market conditions and a difficult macroeconomic context, Emperia Group improved its financial results in the second quarter of 2013. EBITDA reached PLN 20.5 million and was up 108.99% on the same period last year. Revenue from sales was PLN 489.7 million, up 0.46%. The Group's net profit came in at PLN 10.9 million, up 4.36%.
Emperia Group's revenue from sales in H1 2013 was PLN 982.8 million, up 0.39% from the same period the previous year. Net profit came in at PLN 24.6 million, up 32.77%. Earnings were most impacted by a PLN 19 million decrease in interest income after payment of last year's dividend of PLN 817.7 million. Of particular note is the strong performance of the retail segment, which accounts for nearly 98% of Group revenue.
In H1 2013, Emperia Group concentrated its efforts around developing the Stokrotka supermarkets and reinforcing the Group’s position in its core business - FMCG retail.
Consistently implementing its strategy, the Group began work on a new visual identity system for the Stokrotka supermarket chain. The first model store is set to open in September this year. In addition, Stokrotka continued cost optimisation activities at store and central level, as well as its in-house logistics system.
As per the plan, on 1 July 2013 Stokrotka launched its own logistics network, consisting of a distribution centre in Teresin near Warsaw and eight regional warehouses located throughout Poland. Having an in-house logistics system will enable quick and effective product delivery to all stores across the country. Furthermore, the new system will contribute towards improving the stores' operational standards and cost optimisation. Direct procurement to the central hub means cutting out the middlemen, and this translates into better prices for our customers and higher sales margins for us. Aside from the in-house logistics, the company introduced advanced solutions for product quality management and control, allowing to further improve the price to quality profile.
At the same time, negotiations were held over trade terms with more than 300 producers. This process will be continued in the coming months. By the end of October 2013, the company expects 90% of product deliveries to supermarkets to be handled by the in-house logistics network.
Stokrotka Sp. z o.o. also continued its organic growth. From the beginning of 2013, four Stokrotka supermarkets have been opened: in Wrocław, Warsaw and Tychy (in August).
In April 2013, a buy-back programme was resumed. As at 26 August 2013, the total number of shares bought back was 1 050 463, constituting 6.95% of Emperia Holding's share capital. In all of H1 2013, PLN 14.1 million was spent on the buy-back programme. In the context of the still low, according to the management, valuation of the Company's share price, the buy-back is expected to continue in the coming months.
On 26 June 2013, Emperia Holding S.A. paid a dividend of PLN 0.93 per share to its shareholders, i.e. a total of PLN 13.4 million, or almost the entire profit generated by the Group in 2012.
Additional information: Urszula Herecka tel. +48 516 010 573, urszula.herecka@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." An in-house logistics system, launched on 1 July 2013 in line with expectations, is an important element of the new strategy.
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.