Stokrotka speeds up growth

Emperia Group has published results for the third quarter of 2017, with Stokrotka driving revenue growth and stable results for the entire Group.

 

Emperia Group’s third-quarter results, published on Monday, 13 November 2017, confirm the Stokrotka chain’s increasingly strong market position and its consistent pursuit of an ambitious growth plan. The Group’s revenue in the third quarter was up by 10.2% from the third quarter of the previous year, reaching PLN 645.1 million, while revenue for this year’s first three quarters grew by 6.8% y/y to PLN 1.877 billion. EBITDA adjusted for one-off items in this year’s third quarter as well as this year’s first three quarters was on a level similar to that in the corresponding periods of last year.

Stokrotka is consistently growing its sales and improving its financial results. The retail segment’s revenue from sales in this year’s third quarter was up by 10.6% from the revenue in the comparative period, reaching PLN 635.2 million, and PLN 1.847 billion in this year’s first three quarters, denoting 7.2% growth. Third-quarter EBITDA went up by 2.3% to PLN 11.8 million and to PLN 42.8 million in this year’s first three quarters. The improvements in revenue and financial results were driven by: like-for-like sales growth by 5.6% in this year’s third quarter, productivity improvements and the opening of new retail locations.

In the third quarter of 2017, Stokrotka steadily reinforced its competitive position and continued to pursue an ambitious growth agenda. During the period, the chain opened a record number of new stores – 23 retail sites, including: 3 supermarkets, 6 markets, 13 franchise stores and 1 Stokrotka Express market. This was also a quarter in which the chain launched its 400th retail location. At the end of Q3 2017, the chain included 407 stores. The fourth quarter will be even more intense for the chain in terms of planned new retail store openings.

The chain is also focusing on building a store base to be opened in the coming year. The third quarter was a record period in terms of the number of agreements signed for next year, with 23 such agreements being executed. In this year’s first three quarters, agreements to open a total of 53 new stores were signed – this is twice more than in the same period last year.

The property segment also generated stable revenue: PLN 16.8 million in the third quarter and PLN 51.3 million in this year’s first three quarters. Two new properties intended for Stokrotka stores were purchased in the third quarter, with a further 10 being secured under preliminary agreements.

Infinite is consistently building its IT product and solution portfolio. In developing its products, this company is the Group’s main IT partner. In an attempt to further raise the quality of its services, Infinite has recently been investing in expanding its research and development infrastructure. The IT segment’s revenue in the third quarter reached PLN 8 million and PLN 25 million in this year’s first three quarters.

 

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 400 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 90 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.