Emperia Group's Q3 2013 revenue from sales came in at PLN 473 018 000, up 2.16% from the same period last year. YTD 2013 revenue was PLN 1 445 776 000, slightly higher (0.96%) than in the comparative period. Net profit came in at PLN 13 601 000, up 66.03%. The result generated in Q3 2013 was a PLN 10 994 000 loss. This results mainly from investments incurred in the retail segment, aimed at ensuring the effective operation of the logistics system.
The Group consistently implements its growth strategy in all three of its business lines: retail, property and IT. One of the key events at the Group in Q3 2013 was the launch, on 1 July, of an in-house logistics network, aiming to supply the Stokrotka supermarkets and other retail stores belonging to the Group. The new logistics system consists of a central hub, eight regional warehouses and a transport fleet. The launch of new logistics was a significant event of strategic importance, contributing towards improving the retail segment's competitive edge by expanding the assortment in "fresh" product categories, lowering the stores' operational costs, increasing product availability, growing trade margins and improving the working capital situation.
Third-quarter logistics costs amounted to PLN 15.2 million, and PLN 19 million YTD. The capital expenditures connected with the logistics launch, the logistics operational costs and operating parameters were all according to plan. The cost and operational parameters of the logistics system are not yet at their target levels and will be subject to a substantial improvement in the coming months. The main driver of these improvements will be an increase in the product volume processed through the in-house logistics as a result of transferring distribution for more and more assortment groups from external entities, increasing warehouse staff productivity and improving transport efficiency.
In Q3 2013, the y/y retail sales dynamics were higher than in the year's first two quarters (this concerns both the supermarket format and the entire retail segment). However, the third quarter also was a period of higher marketing and promotional activity by most retail chains. Stokrotka incurred substantial expenses connected with marketing activities aimed at building a positive image, raising brand awareness and replacing its old logo. These expenditures in Q3 2013 amounted to PLN 3.8 million.
Works on a new visual identity system for the supermarkets were completed. The launch of the first store in the new standard took place on 2 October 2013 in Dąbrowica, near Lublin. The hallmark of the new retail chain locations under the new identity is a modified assortment offering, adapted to the needs of demanding customers, by placing particular focus on high-quality fresh products: fruits, vegetables, meats, and by expanding the assortment to include ready-to-eat and pre-processed meals. The supermarket opened in Dąbrowica showcased the modern display and communications solutions that will now be implemented throughout the entire chain.
In Q3 2013, the management continued to buy back own shares. In October 2013, the first tranche of PLN 35 000 000 was completed, and a second one of equal value was commenced. The buy-back programme is an important tool for the management to distribute capital to our shareholders.
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 204 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. 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 around 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. This 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.
www.emperia.pl