Emperia Group’s operating segments pursued their development objectives in the first quarter of 2016, generating higher revenue than expected and financial results in line with expectations.
The Group’s first-quarter revenue reached PLN 605 million, up 24.5% from the first quarter of 2015. This is due to the dynamic development of the retail segment.
In Q1 2016, the Group continued its buy-back programme, spending PLN 10.3 million.
In the first quarter of 2016, the Stokrotka chain consistently strengthened its competitive edge and continued implementing an ambitious growth plan. Retail-segment revenue from sale in Q1 2016 was PLN 593 million, 25.59% higher than in the comparative period of last year. This growth was driven by: LFL sales growth, which was 8.5% in Q1 2016, as well as a rapid pace of opening new retail locations, both in 2015 and the first quarter of 2016.
The first quarter was yet another strong period in terms of new store openings. A total of 17 new retail sites were launched: 4 supermarkets, 11 markets and 2 franchise stores. The chain consisted of 340 stores at the end of the first quarter.
Responding to a difficult market and strong price competition, the Stokrotka chain substantially increased its marketing activities in the period being discussed. It focused on intensifying promotional campaigns and implementing attractive loyalty programmes for its customers. Stokrotka also introduced a new pricing policy, having a major impact on improving price perception by clients.
A 6000-sqm distribution centre in Lublin was launched in the first quarter. This is the second centre, after Teresin, within the in-house logistics network.
Despite a high rate of new store openings since the beginning of 2015, as well as expenditures on the new distribution centre and higher costs of marketing and promotional activities, the company generated solid financial results.
In the first quarter of 2016, the property segment recorded stable revenue of PLN 17.7 million and results comparable to the same period last year. However, it should be noted that the Q1 2015 results were impacted by a property disposal transaction that generated PLN 7.8 million in net profit for the segment.
Infinite is consistently building up its market position by developing its IT service and solutions portfolio. In the first quarter of 2016, revenue from sale of services grew by 17.8% from the same period last year, including by 27% from external entities. Infinite is focusing on developing new products and solutions and is therefore investing in expanding its research and development capabilities. The company is carefully analysing the market in terms of 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 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 and nine regional warehouses located throughout the country.
Property segment – manages a portfolio of 91 properties. Invests in facilities for retail operations. The segment manages a property portfolio, acquires new locations and conducts property development activities through several special purpose vehicles. In line with the investment strategy, it focuses on facilities in the form of mini galleries or shopping parks. The main company in this segment is Elpro Development S.A.
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 on foreign markets.