Stokrotka with good first-half results

Emperia Group has published results for the first half of 2017. Stokrotka’s results are fueling the Group’s significant growth in revenue and profitability.

Emperia Group’s results for the first half-year, published on Monday, 28 August 2017, confirm that the Stokrotka chain has reinforced its market position and that its growth plan is being consistently implemented. The Group’s revenue from sales in the second quarter reached PLN 631.7 million and was up by 7.8% from last year’s second quarter. In this period, substantial growth in EBITDA at Group level was recorded, by 19.4%, to PLN 30.2 million, as well as net profit, which reached PLN 15.8 million and was up by 46.4% on the same period in the preceding year. The Group’s revenue from sales in the first half of the year reached PLN 1.232 billion, up by 5.1% from the comparative period. The Group ended the first half of this year with very strong EBITDA of PLN 50.1 million, up by 7.7%. The Group’s net profit increased in the reporting period by 20.9% to PLN 22.2 million.

In the second quarter of 2017, the Stokrotka chain strengthened its competitive position and continued to pursue an ambitious growth plan. Revenue from sales in the retail segment in this period were up by 8.3% from the comparative period, reaching PLN 621.5 million, and PLN 1.212 billion in the first half of this year, denoting growth by 5.5%. The segment’s financial results also increased considerably. In the second quarter, EBITDA went up by 58.5% to PLN 21.1 million, and in the first half-year EBITDA increased by 37.3% to PLN 31 million. Net profit also substantially increased, reaching PLN 10.6 million in the second quarter and PLN 11.6 million in the year’s first half. The growth in revenue and results was driven by: 2.5% growth in LFL sales in this year’s second quarter, improved worker productivity and the start-up of new retail locations. In the second quarter, Stokrotka opened 10 new stores, including 2 supermarkets, 5 markets, 1 franchise store and 2 pilot 5tka Market stores. At the end of the second quarter of 2017, the chain comprised 386 stores.

The property segment also achieved good results. With a stable level of revenue (PLN 17 million in Q2 and PLN 34.5 million in H1 2017), the segment generated solid EBITDA: PLN 9.7 million and PLN 20 million, respectively. In the first half of this year, the Group also expanded its property portfolio by two properties intended for own-store purposes.

 

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 27 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 15 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 370 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.