Stokrotka delivers good results in 2017

Emperia Group has published its results for the fourth quarter of 2017. Revenue growth and stable financial results are primarily driven by Stokrotka’s solid performance.  

Emperia Group’s fourth-quarter results, published on Monday, 26 February 2018, confirm the Stokrotka chain’s increasingly strong market position and consistent pursuit of its ambitious growth plan. The Group’s revenue from sales in the fourth quarter were up by 11.5% from the fourth quarter of 2016, reaching PLN 699.3 million, while its revenue for all four quarters of 2017 were 8% higher than last year, reaching PLN 2.577 billion. EBITDA adjusted for one-off event was 9.6% higher in this year’s fourth quarter and 1.6% in the entire 2017 than in the respective periods last year.

Stokrotka is systematically growing sales and improving its financial results. Revenue from sales in the retail segment in this year’s fourth quarter reached PLN 686.5 million, which is 11.4% higher than in the same period last year, and PLN 2.534 billion for the four quarters of 2017, up by 8.3% y/y. Fourth-quarter EBITDA increased by 13.9% to PLN 19.3 million and by 21.7% to PLN 62.1 million in the four quarters of 2017. Net profit went up substantially to PLN 11 million in the fourth quarter and to PLN 22.9 million in full year 2017. The growth in revenue and earnings was driven by: 5.5% growth in like-for-like sales in the year’s fourth quarter, improvements in productivity and the opening of new retail locations.

In the fourth quarter of 2017, Stokrotka steadily enhanced its competitive position and continued to implement an ambitious growth plan. During this period, the chain opened up a record number of new stores – 33 retail stores, including: 7 supermarkets, 9 markets, 2 Stokrotka Express markets and 15 franchise stores. In full year 2017, Stokrotka launched 77 new stores and had a total of 437 locations at the year end. 2018 will be even more intensive in terms of new retail store openings. The chain plans to launch more than 100 new stores.

The property segment generated stable revenue: PLN 17.3 million in the fourth quarter and PLN 68.6 million in all four quarters of 2017. The property segment’s portfolio was expanded in the fourth quarter by four retail locations, which are now hosting Stokrotka stores.

Infinite is consistently building up its IT products and services portfolio. In developing its products, this company is the key IT partner for the whole Group. To continually raise the quality of its services, Infinite is investing in expanding its research and development capabilities. The IT segment’s revenue from sales in the fourth quarter was PLN 11.7 million and PLN 36.7 million in full year 2017.


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 28 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 16 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. Currently the company chain has almost 440 Stokrotka supermarkets and markets, located in residential developments and mini-centres and shopping galleries. Typical locations range from 200 to 1 000 sqm sales 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. A second distribution centre was launched in Q1 2016 in Lublin.

Property segment – manages a portfolio of 91 properties, supports of growth of Stokrotka’s own stores. 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.