LPP posts revenues and profit growth in H1

LPP, a Polish, family-owned company, having five own brands: Sinsay, Reserved, Cropp, House and Mohito, achieved revenues of 9.3 billion Polish zlotys, up by 13.3 percent or by 18.6 percent in constant currency in the first six month period.

LPP expects revenue in 2024 to range between 20 to 21 billion Polish zlotys and the gross sales margin of 52 to 53 percent.

Highlights of LPP’s H1 results

The group generated a higher revenue due to the growth of sales in both traditional and the online channels. Revenue growth in traditional stores was 19.2 percent due to 217 new stores and 5.1 percent LFL growth across all brands excluding Reserved.

Online sales during the period increased by 17.3 percent due to the development of mobile apps, broader product offerings dedicated to online stores and higher performance marketing expenses.

The Sinsay brand revenue of 4.4 billion Polish zlotys, increased by 42.6 percent. The company said in a release that the intensive openings of new Sinsay traditional stores, attractive prices offered by the brand, positive impact of social programmes in Poland and the economic climate favourable for the value-for-money segment, where the brand belongs, contributed to its revenue growth.

LPP achieves revenue growth in Poland as well as abroad

In geographical terms, revenue from international omnichannel was higher than the revenue recorded in Poland, accounting for 53.6 percent of the group’s total sales.

The group achieved 18.6 percent revenue growth both in Poland and 16.8 percent growth abroad. LPP’s highest revenues outside Poland were achieved in Romania and Czech Republic.

In the first half, the group generated gross profit of 52.3 percent, 3.6 pp. higher than a year earlier. LPP generated EBIT of 1 billion Polish zlotys, 22 percent higher compared to the year earlier, while operating profitability (EBIT margin) stood at 11 percent. The company generated net profit of 720 million Polish zlotys, with net profitability of 7.7 percent.