Emperia Group's Q3 2013 revenue from sales came in at PLN 511 671 000, down 0.91% from the same period last year. FY 2013 revenue was PLN 1 967 447 000, slightly higher (0.95%) than in the comparative period. The fourth quarter saw PLN 1 624 000 in profit, compared with PLN 12 612 000 in Q4 2012. Throughout 2013, the Group generated PLN 15 225 000 in profit, vs. PLN 20 803 000 in 2012. Other operating segments (property, IT and central management) together recorded PLN 47 546 000 in profit in 2013. The retail segment's results generated during this period are in line with the management's expectations. They were weighed down by the costs related to the launch of the logistics system.
One of the key events at the Group in 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 process of implementing and improving the logistics solution was continued in Q4 2013. Implementing new assortment to be handled by in-house logistics is nearly complete. The last categories were introduced at the beginning of 2014. The key logistics performance indicators are systematically improving, in line with the management's expectations. By the end of December, about 85% of the target level of supplies to the central hub was achieved.
In Q4 2013, a merger of the following retail-segment companies was commenced: Stokrotka Sp. z o.o., Maro-Markety Sp. z o.o. and Społem Tychy S.A. The combination was completed on 31 January 2014. Following this, works begun on designing a new store format – Stokrotka Market – for new locations with a sales area of 200 - 400 sqm. The new format will offer shoppers everything they need on a daily basis, including a wide range of fresh products in a convenient, self-serve formula. Through its compact format, Stokrotka Markets will be even closer to the customers, also thanks to their locations - in both residential developments in larger cities and in municipal towns. The new format is a new growth direction for the Stokrotka chain.
In 2013, a strategic decision was made to continue expanding the Stokrotka chain based on a newly-developed franchising solution. In November 2013, Stokrotka Sp. z o.o. opened its first franchise store and in Q1 2014 the company will offer an effective franchise concept to retailers in Poland, founded upon a comprehensive solution offering co-operation from building up assortment through to operational and logistics activities.
In the fourth quarter, the Group's management continued the buy-back programme, believing that our shares are priced below fair value. PLN 9.8 million was spent on this objective. The company continues to treat the on-going share repurchase process as an important tool to distribute cash to our shareholders.