Third-quarter revenue reached PLN 519 501 000 and was 7.29% higher than in the same period last year. Cumulatively from the beginning of the year, revenue from sales grew by 2.45%. The Group’s earnings also improved. EBITDA in Q3 2015 was PLN 20 351 000, compared to PLN 14 896 000 in the same period last year, denoting 36.62% growth. Cumulative EBITDA growth from the start of the year was 26.19%.
Alongside EBITDA, the Group’s earnings also improved significantly. In the third quarter of 2015, net profit reached PLN 8 185 000, up 6 778.15% from PLN 119 000 in the same period last year. The Group’s much improved net profit in 2015 is largely the result of stronger performance in the retail segment.
In the first three quarters of 2015, the Group continued to buy back its own shares, spending a total of PLN 38.1 million.
In the context of deflation in food prices lingering since last year (-0.9% for food and non-alcoholic beverage products in Q3 2015 and -2.2% YTD) and strong pricing competition, retail-segment revenue in the third quarter of 2015 was up 7.35% from the comparative period, and up 2.29% in the first three quarters of the year. This growth results from having opened a larger number of sales locations in 2015. The retail segment recorded strong growth in EBITDA, which amounted to PLN 7 725 000, and PLN 30 734 000 in the first three quarters of the year, denoting 47% growth. The results were positively impacted by improved sales margin, rigid cost discipline and further improvement of the in-house logistics system.
The third quarter was a period in which new store openings were significantly ramped up. A total of 35 new retail stores were opened: 11 supermarkets, 14 markets and 10 franchise stores. At the end of the period, the chain comprised 299 stores, and the anniversary 300th location was launched on 1 October 2015. This growth rate is the highest in the Stokrotka chain’s history. The company intends to maintain this tempo in the coming quarters. Also noteworthy is the significantly faster expansion of the franchise-format stores.
In response to a difficult market and strong pricing competition, the Stokrotka chain ramped up its marketing activities in the period being discussed, focussing its attention on implementing new pricing scenarios and attractive customer loyalty schemes.
During the period in question, the property segment generated stable revenue and earnings. In the third quarter of 2015, revenue from sales grew by 1.04%, and 2.16% cumulatively from the beginning of the year. The segment’s net profit in the third quarter of 2015 came to PLN 6 736 000, and was 12.74% higher than in the comparative period. Net profit for the year’s first three quarters was PLN 26 572 000, up 49.64% on the same period in 2014. The segment’s EBITDA in the first three quarters of 2015 was PLN 39 482 000, up 27.2% on the comparative period.
Infiinte is consistently reinforcing its market position by expanding its IT product and service portfolio. In Q3 2015, the segment’s revenue from sales advanced by 10.07%, and by 5.82% in the year’s first three quarters. Also consistently growing is the share of sales to external entities in total revenue – reaching 67.5% in the first three quarters of 2015, compared with 61.2% in the same period of 2014. Infinite is focusing on developing new products and solutions, and is therefore investing in expanding its research and development capabilities as well as attracting highly-qualified staff. The company is carefully screening the market for acquisition targets, preferably small and medium businesses with complementary product portfolios.
Information about Emperia Group:
Emperia is a dynamic and reputable Polish group focused on the FMCG retail segment.
Founded in 1990, Emperia has been a fixture of Poland’s retail market for the past 25 years. Emperia Group operates in three areas: FMCG retail, IT and property. It employs approx. 7 500 workers.
The Group's operations are coordinated by Emperia Holding S.A., a company that has been listed on the Warsaw Stock Exchange for 13 years. Emperia Holding S.A. is responsible for developing strategy and monitoring progress at all of Emperia Group's companies.
Retail segment – comprising Stokrotka Sp. z o.o. – a company with Polish capital and a wealth of tradition 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 comprises more than 300 Stokrotka supermarkets and markets, located in residential developments and mini-centres and shopping galleries. Typical locations range from 200 to 1 000 sqm in floor space and feature 4 000 - 10 000 assortment items, including groceries, alcohol, beauty products and household cleaners, as well as fresh products: baked goods, meats, fruits and vegetables. The stores also feature local products, made in the regions where the chain is present, and own-brand products. In 2013, the company launched its in-house logistics network, with a distribution centre in Teresin near Warsaw and nine regional warehouses located throughout the country.
IT segment – since the consolidation of the Group's IT companies, completed in 2012, the IT operations are carried out by Infinite, which 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 intended for retail operations, manages Emperia's properties, procures new locations and executes development projects through a number of SPVs. The segment focuses on facilities such as mini shipping galleries and retail parks. The main company in this segment is Elpro Development S.A.