The next chapter

NFI Empik Media & Fashion group, which manages such brands as Zara, Empik, Boss and Smyk, enlarged its network of outlets by 53 last year and now owns 264 shops, language schools and photo labs. In 2005 its sales figure reached zł.1.17 billion, while net profits doubled year-on-year to zł.60.9 million

"We had a very good level of net margin last year at 5.2 percent and we expect that also in 2006 the net profit will grow, but not at such an impressive speed as in 2005," said Maciej Dyjas, EM&F's CEO. "The market research shows a relatively stable trend of customers' interest moving from discount and mass-market products to branded ones. This is very good news for a company like EM&F," he added.

In 2005 EM&F signed franchising contracts with such fashion brands as Aldo, Boss, Mexx and Mango. It also changed its franchising contract with Inditex, owner of the Zara brand, into a joint-venture and purchased 9.45 percent of shares in Coffeeheaven International for zł.6.5 million.

Through its subsidiary, Empik sp. z o.o., EM&F bought 65 percent of shares in Learning Systems Poland, owner of the Orange language schools. The Orange School added to the 48 language schools owned by the group now forms a separate branch of EM&F's activities.

"Thanks to this transaction we're now a leader on the language-school market with over 30,000 students. Although accurate figures about this particular market are difficult to come by, the turnover of the next network of language schools is four to five percent lower than ours," said Dyjas.

Next year, the company plans to expand on foreign markets - the first Smyk shop for children has recently been opened in Berlin and its results are to determine the future moves of EM&F abroad.

EM&F also relaunched its internet store - Empik.com - and is hoping to catch up with the biggest internet books and records store Merlin.pl. This year the income of Empik.com is to grow to some zł.20 million. In 2006, the EM&F group plans a 10-15 percent growth in sales.