Despite unfavourable macroeconomic conditions, all of Emperia Group’s operating segments generated positive results and pursued development plans in 2015. The retail segment’s expansion was particularly dynamic.
The Group’s fourth-quarter revenue reached PLN 592.8 million and was 15.8% higher than in the previous year. Sales in the four quarters cumulatively grew by 5.9%. The sales growth was accompanied by increased profitability: EBITDA advanced 19.3% in the four quarters of 2015, while net profit for the period was up by 58.4% from the same period the year before. This largely resulted from a substantial improvement in the retail segment.
In the four quarters of 2015, the Group continued to buy back its own shares, spending a total of PLN 45.0 million over this period.
The past year was a period of persistent deflation of food product prices and strong pricing competition. Despite these adverse macroeconomic conditions, Stokrotka consistently strengthened its competitive position and pursued an ambitious growth agenda. Revenue from sales in the retail segment for the fourth quarter of 2015 was 16.1% higher than in the comparative period, reaching PLN 581.5 million, and grew by 5.9% in the year’s four quarters cumulatively. The following factors contributed to the sales growth: higher LFL sales and opening of new retail locations. The sales growth was accompanied by an improvement in profitability.
The fourth quarter was another period of intensified new-store openings, with a total of 29 retail locations launched: 7 supermarkets, 9 markets and 13 franchise stores. At the end of last year, the network was up to 327 stores, of which 80 opened since the beginning of 2015. This was the highest growth rate in the history of the Stokrotka chain. The number of openings should be at least repeated in 2016, as Stokrotka expects to launch no fewer than 100 new sites. 12 new stores were opened in the first quarter of this year already. Also noteworthy is the much faster growth of stores in the franchise format, thanks to a store model that is attractive for franchisees. In this business line, Stokrotka launched 27 retail locations in 2015. Last year, the company was also actively involved in acquiring existing locations from other businesses, having concluded two such transactions. In the first one, it completed the acquisition of 19 sites from FRAC. The second transaction covered 9 locations under the MIX chain, which will be included in Stokrotka in the first quarter of 2016. The company will continue developing this way in 2016.
Responding to a difficult market and strong price competition, the Stokrotka chain ramped up its marketing activities in the period being discussed. Stokrotka focused on intensifying its promotional campaigns and implementing attractive loyalty programmes for its clients.
Last year, the property segment recorded stable revenue and growth in net profit. The latter reached PLN 35.6 million, up 8.3% from the same period of 2014. The growth in value resulted from higher yields on the property portfolio under management and from property disposals. The segment’s EBITDA for the four quarters of 2015 reached PLN 49.9 million, up 13.9% from the preceding year.
Infinite is consistently building up its market position by working on its portfolio of IT services and solutions. In the fourth quarter of 2015, the segment recorded 19.6% growth in revenue from sales, and 9.1% growth for the four quarters of 2015, as compared with the preceding year. Sales also grew in last year’s final quarter, by 5.5%, and by 2.8% from the first quarter of 2015. Infinite focuses on developing new products and solutions, and is significantly investing in research and development infrastructure. The company is also carefully screening the market for acquisition targets, preferably small and medium companies 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 26 years. Emperia Group operates in three areas: FMCG retail, IT and property. It employs approx. 8 000 workers.
The Group's operations are coordinated by Emperia Holding S.A., a company that has been listed on the Warsaw Stock Exchange for 14 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.
Property segment – manages a portfolio of 86 properties. Invests in facilities for retail. The segment manages a property portfolio, acquires new locations and conducts property development activities through several special-purpose vehicles. Its investment strategy is focused on facilities in the form of mini shopping galleries and retail parks. Elpro Development S.A. is the key company in this segment.
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 foreign markets.