The first quarter of 2015 was marked by deflation in food and non-alcoholic beverage prices, prevailing since last year. Sales were further affected by factors such as strong pricing pressure in the retail market and a weaker-than-expected holiday effect. Despite these negative externalities, Emperia Group reported revenue growth in Q1 2015. The Group’s revenue from sales was 1.44% higher than in the same period last year, reaching PLN 486 342 000. At the same time, EBITDA grew considerably, from PLN 17 232 000 in Q1 2014 to PLN 30 943 000 in Q1 2015, denoting 79.6% growth. The Group’s profit improved in line with EBITDA, from PLN 3 229 000 in the previous year’s first quarter to PLN 18 811 000 in Q1 2015. The much higher net profit generated by the Group this year is primarily the result of significantly improved performance in the retail segment as well as a one-off transaction executed in the property segment, concerning disposal of a property.
In Q1 2015, the Group continue its buy-back programme, spending PLN 14.8 million.
Despite unfavourable macroeconomic developments, the Group’s retail segment increased revenue and improved financial results in the first quarter of 2015 in comparison with the same period last year. Revenue from sales advanced 0.87% to PLN 472 435 000, which is a positive result in the context of the adverse market conditions. Gross margin went up by 0.39% from Q1 2014 to 28.56%. In the retail segment, EBITDA grew significantly in Q1 2015 to PLN 10 273 000 from PLN 2 909 000 in the previous year’s first quarter, denoting 253.15% growth. These results were positively affected by the Group maintaining cost discipline and continuing to further optimise in-house logistics costs.
In the first quarter, Stokrotka launched a project aiming to open a local distribution centre in Lublin at the end of 2015 and start of 2016. This solution will positively impact logistics costs and the quality of logistics processes.
This year’s first quarter was a great period in terms of new store openings, with a total of 9 stores opened (2 supermarkets, 6 markets and one franchise store). At the end of the quarter, the Stokrotka chain had a total of 259 retail stores.
The first quarter of 2015 was another consecutive period of success for the property segment, which generated stable revenue and results. First-quarter EBITDA reached PLN 18 326 000, up 83.30% on the comparative period. This growth largely came from the sale of two properties, with an aggregate result of PLN 7.8 million.
Infinite, the IT segment company, consistently strengthened its market position in Q1 2015, expanding its portfolio of services and IT solutions, and generating increasingly solid financial results as a consequence. During the period in question, revenue from sales in this segment grew by 31.63% from the same period last year, to PLN 10 791 000. External revenue is also successively increasing its share in total revenue, reaching 73.9% in Q1 2015.