Emperia Group’s results published on Monday, 29 August 2016, are proof of further dynamic organic growth in the retail segment. In the first half of 2016, the Stokrotka chain consistently reinforced its competitive advantage and continued to execute its ambitious growth plan. Revenue from sales in the retail segment in the first half of 2016 were 24.2% higher than in the comparative period last year, and reached PLN 1.189 billion. The revenue growth was driven by: growth in LFL sales (Q1 2016: 8.5%, Q2 2016: 6.6%) as well as a high rate of new retail location openings, both in 2015 and in the first half of 2016. During this period, a total of 28 new retail sites were opened, including 9 supermarkets, 14 markets and 5 franchise stores. At the end of this year’s first half, the chain comprised 348 stores.
On the back of these results, the Management Board has made a decision to begin a review of strategic options. This is connected with the strategy adopted in 2013, providing for consistent organic and acquisitive growth. “Emperia Group’s retail segment is developing really well and is organisationally ready for further intensive growth. We are convinced that despite a difficult market environment and strong price competition, retail continues to be a high-potential industry. Acquisitions and market consolidation are an opportunity to exponentially increase the scale of our business. We want to be well prepared for potential acquisition opportunities. To this end, we have made a decision to launch a review of our strategic options,” says Dariusz Kalinowski, president of the management board of Emperia Holding S.A.
The review will cover different strategic options, in particular: search for an investor or public share issue, strategic partnership or change in the Group’s structure. The review is intended to select the most favourable directions for the Group’s long-term growth in all of its business areas.
In the first half of 2016, the property segment generated stable revenue of PLN 35 million, with results at a level comparable to the same period last year. However, last year’s first-half results were affected by a property sale transaction, which generated PLN 7.8 million in net profit for the segment.
Infinite is consistently building its market position by working on its portfolio of IT services and solutions. In the first half of 2016, revenue from sales grew by 4.9% to PLN 19.9 million, as compared with the same period last year. The sale of services also steadily increased: up 25.4% in Q2 2016 from Q2 2015, and up 21.4% to PLN 16.6 million in this year’s first half, as compared with the first half of 2015. The segment’s financial results also improved. Infinite is focusing on developing new products and solutions, which is why it is investing in the expansion of 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 340 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.