Results by the book

EM&F Group, one of Poland's largest firms in the lifestyle-goods sector, posted growth in sales of 22.9 percent in 2006. This led to a total net profit of zł.82.9 million for the year, as compared to zł.59.6 million in 2005, excluding one-off transactions. The company attributes the results to the continuation of its development strategy.

EM&F Group manages a wide range of international and Polish brands in media, entertainment, fashion and cosmetics including such premium labels as Hugo Boss and Dior. EM&F also has its own brands, such as the Empik bookstores and Smyk children's stores, as well as two networks of language schools.

In 2006 the company's total investments equaled zł.87.8 million, almost zł.6 million more than in 2005. It opened 39 shops and service outlets and extended its offer of language schools. December last year saw the sale of Galeria Centrum to Vistula & Wólcznaka for the price of zł.30.9 million.

The group has been continuing its expansion to markets outside Poland. In Ukraine it bought 65 percent of shares in Paritet-Smyk LLC, a distributor of children's products and Bukwa LLC, a bookshop. The company took over 29 shops in total. It also opened the first Smyk outlet in Berlin last year.

For 2007 the group is expected to increase investment expenditures to as much as zł.90 million, and open as many as 90 new shops. It wants to invest in the development of logistics and infrastructure platforms, as well as in IT.

EM&F's foreign investments will focus mainly on Ukraine. "This is a big market with huge potential, which is developing as fast, if not faster, than Poland did ten years ago," said Katarzyna Górecka, the communications director and spokesperson for EM&F. This year, the company wants to open up to 10 new outlets (five Smyk outlets and five Empik shops) in Ukraine.