Dino and Eurocash with results below expectations. Musketeer Group with an ambitious plan
In August, we learned the half-year results of Eurocash, Dino and Grupa Muszkieterów.
The Dino Group's sales revenue amounted to PLN 13.9 billion and was 15.1% higher than in the first half of 2023. LfL sales growth amounted to 1.8% compared to 20.3% growth a year earlier. Net profit amounted to over PLN 643 million. The chain opened 98 new stores compared to 116 in the same period last year. As of June 30 this year, the Dino chain consisted of 2,504 stores with a total sales area of 987,398 sq m.
In Q2 alone, the Dino Group's revenues amounted to PLN 7.24 billion and were PLN 694.3 million, or 10.6 percent, higher year-on-year. At the same time, the cost of sales increased by 10.1 percent, to PLN 5.6 billion.
Read more
Labor costs and price wars are strangling trade
Eurocash Group revenues in the first half of the year amounted to PLN 15.8 billion and were 1 percent lower year-on-year. In the second quarter alone, they amounted to PLN 8.2 billion and were 2.5 percent lower than in the second quarter of 2023. The Group also recorded a weak net result. The net loss in the first half of 2024 reached PLN 87.2 million, compared to PLN 1 million of profit recorded in the same period a year earlier. The EBITDA margin dropped by 0.4 percentage points, which translated into PLN 226 million of EBITDA profit.
From April to June this year, the Group recorded nearly PLN 8.2 billion in revenue (compared to PLN 8.4 billion in Q2 2023), and EBITDA profit amounted to PLN 226 million. Sales in the first half of the year amounted to PLN 15.8 billion (compared to nearly PLN 16 billion year-on-year), and EBITDA profit – PLN 365 million.
The Musketeer Group achieved a total turnover of nearly PLN 5.2 billion in the first half of 2024 within the associated Intermarché and Bricomarché chains, recording almost 7% growth year-on-year. The Group confirms its goals and assumes that, despite the dynamic market situation, it should reach a level of PLN 11 billion in turnover by the end of this year.
From January to June, the turnover of the Intermarché banner, including petrol stations, amounted to PLN 3.1 billion. This result translated into a 2.9 percent like-for-like increase in sales, excluding fuel. During this time, the brand launched 3 supermarkets with a total area of 4.6 thousand square meters, and plans to open more in the next two quarters.
The Intermarché chain has also launched two more petrol stations at supermarkets. In total, there are currently 70 stations operating under the chain's banner, and more are planned. In the reporting period, the volume of fuel sold increased by almost 11 percent like-for-like.
Read more
A chain of DIY stores in Poland is changing its CEO
In six months, the Bricomarché brand opened 18 stores out of 25 planned for the entire year. In total, the Bricomarché chain ended June with 210 stores. Sales of all points of sale amounted to PLN 2.1 billion, which translated into a 13.8% increase year-on-year.
Marek Sawa became the new president of Bricomarché in August, replacing Jacek Paszke. Marek Sawa will be responsible for building and implementing the chain's sales strategy throughout the country.
Biedronka goes beyond Poland
The first Biedronka stores in Slovakia will appear in: Zvolen, Levice, Novy Zamok, Považská Bystrica and Senica. The list of locations was provided by Zuzana Baloghova, chief people officer at the Slovak branch of Jeronimo Martins.
– Slovakia is a country neighbouring Poland and has a similar shopping culture. Many Slovaks cross borders and come to Poland to shop and shop at Biedronka, which is why we are considering our investments in this country – explained the head of Biedronka, Luis Araujo.
Read more
No more Sunday trading ban under the old rules. New regulations are a revolution
Jeronimo Martins also plans to open stores in other European markets, including Romania, the Czech Republic and Ukraine.
UOKiK fights payment backlogs
The President of the Office of Competition and Consumer Protection initiated 10 proceedings concerning excessive delays in fulfilling pecuniary obligations by the following companies: Coca Cola HBC Polska, Delpharm Poznań, DOZ SA Direct sp.k., Emerlog, Mahle Behr Ostrów Wielkopolski, Padma, Przedsiębiorstwo Budowlane GRANIT, Suder & Suder, Teva Pharmaceuticals Polska, Track Tec Koltram.
– Late payments from larger contractors disrupt the financial liquidity of SME companies, destabilizing their operational activity, limiting investments and development. Therefore, it is unacceptable for large companies not to pay their smaller contractors on time – said the president of the Office of Competition and Consumer Protection, Tomasz Chróstny.
Trade not ready for the deposit system?
The retail sector is anxiously awaiting the draft law on the deposit system, due to the welfare of the consumer. The regulation in its proposed form will result in chaos and disorientation on the market. The start date of the new system should be uniform, and the obligations and penalties should be proportionate for all market participants – says Renata Juszkiewicz, president of POHiD, an organization associating international retail chains.
POHiD therefore appeals to postpone the introduction of the deposit system in Poland until 1 January 2026. The risks associated with introducing the deposit system on 1 January 2025 include the inability to prepare many key issues, which means the risk of chaos and confusion among customers. In addition, stores face high fines of up to PLN 500,000.
The Carrefour chain is preparing to implement the system, among others. On August 8 this year, its pilot was launched in the chain's Warsaw stores, which the retailer is conducting in cooperation with InPost, PolKa – Polska Kaucja and Muszynianka. The aim is to test the partners' readiness to launch the deposit system and to educate the public in accordance with the principle: "don't throw away, don't crush, return at the point of purchase and collect the deposit".
Read more
Local governments have a negative opinion about the project of the deposit system in Poland
Żabka in a new e-commerce project
Żabka Polska together with Filip Friedmann and Julian Kozankiewicz will create a joint entrepreneur that will provide services to entities from the e-commerce sector in Poland. The application was submitted to the Office of Competition and Consumer Protection, the case is pending.
The joint venture will offer services to e-commerce entities in Poland. Julian Kozankiewicz is the head of NoaTech. He also worked for Retail Robotics (the company installed PickupHero parcel machines in Żabka stores). Filip Friedmann operates in the investment market (owner of the BUDLEX development company).
Read more
Attention, important changes are coming to the Żabka app. Tests will start in September
Punishment for Janusz Palikot
False information about the company's market position, failure to inform about risks, non-existent loan crowdfunding and a fictitious competition – these are examples of questioned activities of the loan campaign "Skarbiec Palikot". Promotional activities were conducted mainly in the social media of Janusz Palikot – a member of the company's management board. The President of the Office of Competition and Consumer Protection issued a decision in which he imposed a fine of PLN 950 thousand on Janusz Palikot and PLN 239 thousand on the Polskie Distylarnie managed by him.
Read more
More than one million zlotys in fines for Janusz Palikot and Polish Distilleries
CCC keeps costs in check, there is an increase
The CCC Group in Q2 24 (May '24 – July '24) achieved revenues of PLN 2.6 billion, which is a 6% increase y/y. Turnover in the CCC segment was higher by 7% (LfL stores +12%), with continued optimization of retail space (-2% y/y). On the other hand, HalfPrice revenues increased by 23% y/y and were consistent with the assumed pace of expansion of the sales network. The Modivo Group, in turn, recorded sales higher by 1% y/y.
It was another quarter of significant strengthening of gross margin – a jump was recorded in HalfPrice (+13 pp) and CCC (+5 pp). In each business line, the cost to income ratio was lower year-on-year as a result of continued, high cost discipline.
