Czerwona Torebka - Czerwona Torebka invests in the future

The increase of costs achieved in the period related to the dynamic development of trade activity and simultaneous slowdown in the development of strip malls resulted in temporary deterioration of financial results of the Group.
However, the realization of very prospective projects will ensure a dynamic increase of financial results in the following periods. In the first six months of 2013 the Czerwona Torebka Group has obtained revenues of 51,85 M PLN, what means an increase by 37,4% in relation to the analogous period of the previous year. This improvement of revenues resulted from the development of the strip mall chain. Gross profits from sales have increased by 18,3% year-on-year and has amounted to 18,96 M PLN. In that period the Group has recorded an increase of overhead and selling costs, due to higher expenses borne on the development of trade formats. Due to the negative valuation of investment properties, which resulted, among others, from the slowdown in the development of strip malls, in the first half of 2013 the Capital Group has incurred an operating loss of about 9,28 M PLN (EBIT), in relation to nearly 17,38 M PLN of profit in the same period previous year. At the level of net result, the Group reported a loss of 14,81 M PLN as compared to 13,23 M PLN of profit in the first half of 2012.
„The dynamic development of a wide range of trade formats entails a growth of borne costs. The time to achieve a breakeven point of the realized trade projects is needed. On the other hand concentration on trade activity has caused a slowdown in the development of new strip malls, which has translated into lower than assumed profits from investment properties valuation. A consequence of the realized strategy was a temporary deterioration of performance in the first half of the year.” – stated Paweł Ciszek.
The first half of the year was for the company a period of very dynamic development of the Capital Group. In this time Merlin.pl, a leader on the polish market in the e-commerce sector, has joined the Group. Moreover, actions aimed at a takeover of a convenience store chain, Małpka S.A., were undertaken. Additionally, the Group has started preparations in order to launch its new project – a development of a new discount chain. The first stores will be opened at the end of this year. „The realization of commenced and very prospective projects is a guarantee of much better results in the following periods, while at the same time extending the scale of activities. – added the President of Czerwona Torebka.