Redan's sales revenues up by 8.6 percent in Q1 2010

According to Q1 2010 financial report Grupa Redan recorded PLN 67.4 million in sales revenues (8.6-percent increase y-on-y), with PLN 28.3 million in retail margins (10-percent increase y-on-y). According to a statement, the group experienced a fast expansion of its discount chain Textilmarket, as well as a significant improvement in the fashion sector and in its operations abroad.

Last year the group began to restructure its operations, which allowed it to reduce its Q1 2010 costs to PLN 29.5 million (down from PLN 33.4 million in Q1 2009). As a result, Redan posted a PLN 1.5 million net loss in Q1 2010, down from PLN 14.5 million loss in Q1 2009. At the same time, GK Redan recorded the best results in its basic operations (apparel sales).
"Q1 2010 results are very good and indicate that following a very difficult period of restructuring, the group is returning to profitability, which makes us believe that our 2010 budget plans will be achieved," says Piotr Kulawiński, president of Redan SA's management board.
Discount apparel chain Textilmarket recorded PLN 33.2 million in Q1 2010 sales revenues, which represents a 20-percent increase y-on-y (like-for-like increase was 9 percent). Textilmarket also posted close to PLN 1.4 million in gross profits in Q1 2010 (25-fold increase over
Q1 2009).
Grupa Redan also recorded a 5-percent increase in the fashion sector, with PLN 29.7 million in Q1 2010 sales revenues and PLN 14 million in retail margins (9-percent increase), in spite of the fact that almost entire Troll chain was closed down in 2009.
"Improved results in the fashion sector are the effect of increased like-for-like sales in the Top Secret chain, which amounted to 11 percent in Q1 2010, and lower operational costs," added Mr.
Kulawiński.
The group also improved significantly its results from operations abroad, with a 69-percent increase in Top Secret and Troll sales - PLN
2.8 million in net sales revenues and PLN 0.5 million in gross profit in Q1 2010 (vs. PLN 1 million in gross loss in Q1 2009).
The management of Grupa Redan is convinced that it will be able to meet its forecasts for 2010.