Emperia Group reported financial results for this year’s second quarter in line with the management’s expectations. Group revenue from sales reached PLN 502 360 000 in Q2 2014, up 2.6% on the same period last year, mostly due to stronger sales in the retail and IT segments. The Group’s second-quarter profit on sales reached PLN 145 312 000, a 22.7% increase on the same period last year.
In Q2 2014, the Group generated PLN 14 126 000 in net profit, up 29.7% from PLN 10 888 000 in Q2 2013. This result was largely driven by the retail segment, which posted net profit of PLN 6 473 000, allowing to cover the increased costs connected with implementing in-house logistics in 2013.
Emperia Group’s total revenue in the second half of 2014 came in close to the previous year (a 0.1% decrease), which is a positive development given the difficult market situation in retail. In H1 2014, the Group reported a 17.6% increase in profit on sales, resulting from stronger retail-segment margins.
In Q2 2014, the Stokrotka Market format was implemented at locations with a sales floor of 200-400 sqm. This new format will provide customers with complete daily shopping, including a comprehensive offering of fresh products in a convenient, self-serve formula. Because of its compact design, the Market format will be even closer to the customer – also thanks to its locations, both in residential complexes in larger cities and in municipal towns. The new format is currently being fine-tuned and constitutes a subsequent avenue for the dynamic development of the Stokrotka chain.
The year’s second quarter also saw the market roll-out of the franchise offering “Franczyza Supermarket Stokrotka,” which consists of a complete retail concept that includes unique operational and commercial solutions. Unveiled in April, the offering gives future franchisees an opportunity to start their own business under an established and modern brand – Stokrotka. It also provides an effective and advanced logistics system, continuous support by a team of experts, comprehensive marketing and operational assistance, as well as access to a list of trusted suppliers, offering favourable commercial terms. Having established an appropriate team of experts, the company is dynamically developing its supermarket franchise business, the effects of which will be seen in subsequent quarters.
The company is continually working on reinforcing its market position, which includes on-going implementation of its new brand and store format. By the end of the second quarter, this process was completed at nearly half of the retail locations. The chain is continuously optimising its assortment on offer in order to better tailor it to customers’ needs. Also completed during Q2 2014 was a project that is to serve as the basis for a campaign aimed at improving the chain’s price perception. In enhancing its market competitiveness, the company is focusing its efforts on improving the logistics, commercial and operational model. In operations, multiple new organisational and marketing communications solutions were implemented. During the quarter, the company consistently lowered the operating costs of its in-house logistics system, which has been operational for four quarters now. The target level of store supplies from the central warehouse has already been reached.
During Q2 2014, the Group’s management continued to buy back shares, believing that the current market price remains below fair value. During the quarter, PLN 10.4 million was spent on the buyback programme, which the company continues to treat as an important tool for distributing excess cash to shareholders. On 30 June 2014, a dividend of PLN 12.1 million was paid out.
Additional information: Urszula Herecka tel. +48 516 010 573, urszula.herecka@emperia.pl