Emperia Group’s results published on Monday, 14 November 2016, are proof of further dynamic organic growth in the retail segment. In the third quarter 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 this period was 16.9% higher than in the comparative period last year, reaching PLN 594.4 million, and PLN 1.783 billion cumulatively YTD, denoting growth of 21.6%. The substantial revenue growth was driven by higher like-for-like sales (Q3 2016: 5.4%) and strong growth in the number of new retail locations launched, both in 2015 and in the first three quarters of 2016. The Stokrotka chain opened a record number of sites last year, adding 80 new stores. So far this year, 39 new retail locations have been launched. The third quarter alone saw 11 new stores: 2 supermarkets, 1 market and 8 franchise stores. At the end of the period, the chain comprised 358 stores in total. The fourth quarter will also be an important period for expansion of the Stokrotka chain. The large number of expected store openings is a significant operational and commercial challenge for the chain.
In the third quarter, Stokrotka began intense work on another store concept after supermarkets and markets – the convenience format. These will be different stores from the other retail locations in this format on the market. They will be based on a franchise formula, and their huge advantage will be fresh products and assortment fully sufficient to supply households with basic groceries. The first test store in the new format will open in Q1 2017.
After this year’s first three quarters, the property segment generated stable revenue of PLN 52.5 million. The third quarter alone ended with very strong EBITDA of PLN 19 million. EBITDA after three quarters came to nearly PLN 40 million. The third-quarter result was driven by property sale transactions, which brought a net profit of PLN 6.4 million for the segment (EBITDA 8.5 million).
Infinite is consistently building its market position by working on its portfolio of IT services and solutions. Revenue in the first three quarters of the year came to PLN 28.8 million, with 16.3% growth in service sales in Q1 and 19.7% in Q1-Q3, comparing to the same periods of 2015. Infinite is focusing its activities on developing new products and solutions, investing in the expansion of its research and development capabilities. The company is also actively seeking acquisition targets 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 more than 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 350 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. A second distribution centre was launched in Q1 2016 in Lublin.
Property segment – manages a portfolio of 88 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.