Despite falling food prices, Emperia Group, whose main asset is the Stokrotka store chain, reported revenue growth in the fourth quarter of 2014. Emperia Group's revenue from sales in Q4 2014 came to PLN 512 032 000. FY 2014 revenue reached PLN 1 978 042 000. Fourth-quarter EBITDA was PLN 25 403 000, compared with PLN 12 637 000 in the fourth quarter of the comparative period. FY 2014 EBITDA was PLN 85 294 000, up 52.33% on the previous year.
The fourth quarter saw PLN 14 421 000 in profit, compared with PLN 198 000 in Q4 2013.
In 2014, the Group made substantial distributions to shareholders (approx. PLN 70 million in buy-back and dividend) and pursued an ambitious investment programme (approx. PLN 65 million), while managing to retain a sizeable amount of cash, which by the year-end amounted to PLN 145.2 million.
The fourth quarter of 2014 was another consecutive period in which deflation in food and non-alcoholic beverages (-2.6% in Q4 2014 y/y, according to GUS data) had considerable impact on sales. The period was further characterised by strong pricing competition on the retail market. Despite these adverse factors, the retail segment expanded revenue and improved earnings, as compared with the same period last year.
In the fourth quarter, Stokrotka opened 8 new retail locations (4 own supermarkets, 3 own markets and 1 franchise store). At the end of the period, the network comprised a total of 252 retail locations. In Q4 2014, the rebranding of Stokrotka was completed, thanks to which the network now has a consistent visual identity. Remodelling of retail locations (3) and floorplan changes (6) were continued.
Stokrotka is dynamically optimising its logistics, which still leaves significant room for improvement in terms of both costs and quality. As regards this process, of particular importance is the decision to launch a local distribution centre in Lublin in the fourth quarter of 2015, which will function as a logistics hub for fresh and fast-moving products. This solution will have a positive impact not only on the costs but also the quality of logistics processes.
A good year for the property segment culminated in the fourth quarter, in which the segment recorded 18.45% growth in revenue from sales, with the full-year figure being 8.65% higher than in 2013. The Group's portfolio of 92 properties consistently brings in stable revenue and growing earnings. Companies in this segment actively searched for opportunities to develop the portfolio, with a view towards acquiring new locations intended for retail operations, in accordance with the adopted strategy. In the fourth quarter, companies in the segment sold properties worth a total of PLN 9 100 000, which resulted in consolidated operating profit of PLN 3 745 000 and net profit of PLN 3 611 000.
The fourth quarter, like the entire 2014, was positive for Emperia Group’s IT company. Infinite consistently strengthened its market position, as evidenced by its steadily improving financial results. In Q4 2014, this segment's revenue from sales was 8.7% higher than in the same period last year, while FY 2014 revenue increased by 12.26%, as compared with 2013. The source of revenue growth is sales of existing products as well as introduction of new services and solutions. Serving as proof of Infinite's growth are numerous awards that the company received, including local editions of the 2015 Forbes Diamonds and 2014 Business Gazelles.