NG2 expecting PLN 120m net profit in 2010

2010-03-02

In 2010, the NG2 footwear group, which manages the Boti, CCC and Quazi brands, expects to make a net profit of PLN 120m (€30m), a 39% year-on-year increase, and to earn sales revenues of PLN 1.13bn (€280.5m), 20% more than in 2009. The retailer intends to expand its chains by 78 establishments and to improve sales at its existing stores: by 10% in the CCC and Boti networks and by 20% in the Quazi chain and the CCC network in the Czech Republic. The group is expecting its profit margin to increase by 5 p.p., mainly because of the strengthening of the zloty. Net profitability is expected to be as much as 12% in 2010, whereas in 2009 the figure was 9.4%.
In addition, NG2 intends to build an automatic storage facility. The project is thought to be worth PLN 190m (€47.6m), of which PLN 38.8m (€9.7m) will be funded by an EU grant.
In 2009, the group made a net profit of PLN 86.6m (€21.7m). The company’s management had previously expected to make a net profit of between PLN 90m (€22.5m) and PLN 100m (€25). The disappointing results reflected the weather in November 2009, which discouraged winter collection sales.