NFI EM&F posts gains ahead of share offering

A few months before a planned selloff by minority shareholders, retailer Empik Media and Fashion (NFI EM&F) announced positive H1 results. Sales revenue amounted to zł.552.6 million, six percent more than in the same period a year before, and 17.3 percent higher excluding Zara Polska, in which NFI EM&F divested itself of 51 percent in Q3 2005. Net profit reached zł.7.8 million, compared to a loss of zł.2 million in H1 2005.

Along with the announcement, the company reported that it has submitted an issue prospectus to the Security and Exchange Commission (KPWiG), as a group of company's minority shareholders plan to sell at least 19 percent of their shares in the company in Q4 this year. The group of private equity funds had originally invested their money in Eastbridge Group, NFI EM&F's main shareholder. Those shares were systematically converted into EM&F shares, which the shareholders believe have now matured. "Along with the end of the process of conversion and the recording of steadily rising financial results by the group, we have begun work on preparing a public offer," said Rob Conn from Innova Capital, who is representing the minority shareholders.

"The offering will be directed towards financial institutions as well as individual investors," says Maciej Dyjas, Empik's CEO. "Thanks to this, the recognizability of the company will increase significantly, our strategy and prospects will be known by a wider spectrum of investors, and  the liquidity of the company's shares on the WSE should improve."

EMF operates 272 outlets and points-of-services, which include Empik bookstores, language schools and shops under logos such as Galeria Centrum, Esprit, Hugo Boss, Wallis, Mexx, Mango, Aldo, Zara, River Island and Smyk. The company also  has an interest in Sephora perfumeries and Coffeheaven cafès.

This year the company opened 10 new stores and three language schools and wants to open another 40-50. Apart from organic growth in Poland, EMF also wants to conquer foreign markets. The first Smyk store was opened in Berlin this year and the company is thinking of further expansion into Central and Eastern European markets, where it would like to introduce its own brands (e.g. Empik, Smyk) and develop franchise brands.