Emperia and Eurocash expected to hold fast on the Polish market

2009-03-18



The largest Polish FMCG retail groups, Emperia Holding and Eurocash, expect to continue to develop despite the recession.
Emperia, which generated sales revenues of PLN 5.3bn (€1.1bn) in 2008, plans to improve its performance by 12%, to PLN 5.9bn (€1.2bn), in 2009. The group will invest PLN 200m (€42.2m) in the development of its retail chains and distribution activities. Several dozen Stokrotka supermarkets are to be launched in 2009. At present the chain consists of 140 stores. In addition, the Delima delicatessen chain will be expanded, but only by two outlets, because of delays in shopping centre launches – at present Emperia manages five Delima stores.
The group also intends to enlarge its distribution centre in Bialystok and to develop its wholesale store chain. Despite the investment costs Emperia is likely to recommend a payment of shareholder dividends (15% of the net profit). The group is also negotiating on the acquisition of several small and medium-sized retail companies.
Its main rival, Eurocash, strengthened its position on the Polish FMCG market in 2008 by means of the acquisition of McLane Polska, a distribution firm. The group earned sales revenues of PLN 6.1bn (€1.3bn) and made a net profit of PLN 78.3m (€16.5m) in 2008, reflecting 30% and 33% year-on-year growth respectively. At present the company is working on the expansion of its franchise chains – Delikatesy Centrum and ABC. It intends to acquire around 500 franchise stores in 2009. It may also invest in KAH Spolem, which manages the Spolem cooperatives.