Poland's LPP plans CAPEX of 1.05 bln zlotys for 2023/24

The company expects risks from possible economic slowdown and growing operating costs, such as electricity costs, salary inflation and depreciation of Polish zloty. In third quarter of fiscal year 2022/23, LPP's revenue grew 39% year-on-year to 4.37 billion zlotys supported by growing sales in all of its brands.

Poland's retailer LPP plans capital expenditure of 1.05 billion zlotys ($239.22 million) for 2023/24, the company said on Wednesday, with 800 million zlotys planned for stores, 170 million zlotys for infrastructure and 80 million zlotys for IT. The company also expects double-digit year-on-year revenue growth as customers are accepting higher prices.

The owner of brands such as Reserved, Sinsay and Mohito had raised product prices due to higher costs caused by inflation. According to the flash reading, the inflation in LPP's home market, Poland, rose 17.4% year-on-year in November. The company expects risks from possible economic slowdown and growing operating costs, such as electricity costs, salary inflation and depreciation of Polish zloty.

In third quarter of fiscal year 2022/23, LPP's revenue grew 39% year-on-year to 4.37 billion zlotys supported by growing sales in all of its brands. The company's gross margin reached 51.2%, and was down 7.1 p.p. year-on-year. ($1 = 4.3892 zlotys)