LPP (company)

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LPP SA

logo
legal form Spółka Akcyjna
ISIN PLLPP0000011
founding 1991
Seat Gdansk , PolandPolandPoland 
management Marek Piechocki ( Chairman of the Board of Management )
Jerzy Lubianiec ( Chairman of the Supervisory Board )
Number of employees 17,857
sales 9.9 billion zlotys (2.3 billion euros )
Branch Clothing industry
Website www.lppsa.com
As of January 31, 2020

Reserved branch in Gdansk

LPP SA is a listed Polish clothing group based in Gdansk . The company designs , produces and sells clothing for the Reserved , Cropp , House , Mohito and Sinsay labels .

At the beginning of 2020, the LPP sales network comprised a total of 1,746 retail stores , some of which were operated by franchisees . Since the opening of the first store in Finland in 2019, the distribution network has expanded to 25 countries. The company also operates several e-commerce websites in a total of 30 countries.

Across the Group, there are a total of 24,447 employees in Europe, Asia and Africa (corresponds to 17,857 full-time equivalents ).

The company's share has been listed on the Warsaw Stock Exchange since May 2001 and is included in its leading indices WIG20 and WIG30 ; also in MSCI Poland .

history

1991–2000 - founding years

In 1991 Marek Piechocki and Jerzy Lubianiec founded a company trading under the name of Mistral Sp. Z oo , which dealt with the import of clothing from Asia. In 1995 the company was renamed LPP - the name is an acronym formed from the initials of the founding names ( L ubianiec, P iechocki i P artnerzy , German Lubaniec, Piechocki and Partner ). The idea of ​​establishing one's own clothing brand and building up an independent sales network for it also originated from this time. In 1997 an office was opened in Shanghai . The first Reserved brand boutiques finally opened in 1998.

2001–2013 - IPO and expansion into Central and Eastern Europe

In 2001 LPP went public on the Warsaw Stock Exchange .

The company's international expansion into Central and Eastern Europe began in 2002 and 2003 - the first reserved stores were opened in Estonia , the Czech Republic , Russia , Hungary , Latvia , Lithuania , Ukraine and Slovakia .

In 2004 the Cropp brand was introduced and the first store opened in Poland; The women's underwear brand Esotiq followed in 2005 - the latter was spun off from the LPP Group in 2011 and has since been part of the independent company Esotiq & Henderson .

In the following years, Cropp was introduced in Estonia, Slovakia and Latvia (2005) as well as in Lithuania, Russia and the Czech Republic (2006). The brand was further expanded in 2007 and 2008 on the Romanian and Bulgarian markets; In 2008, a distribution center in Pruszcz Gdański went into operation .

With the takeover of the competitor Artman SA in 2008, the company expanded its brand portfolio to include the House and Mohito labels . and became the largest clothing retailer in Poland. In the same year, the international presence was expanded: the first branches in Romania and Bulgaria were opened.

In 2013 the Sinsay brand was introduced; the first boutiques opened on March 1st.

Since 2014

In 2014 the company expanded to Germany ( Reserved ) and Croatia (all LPP brands); In 2015, the company entered the first non-European markets with expansion into Egypt, Qatar, Kuwait and Saudi Arabia. In the same year the LPP share was included in the WIG 20 leading index of the Warsaw Stock Exchange.

In 2016, the Tallinder brand was launched, with which the company tried to establish a presence in the premium segment and the first store was opened in Gdansk. However, the brand was liquidated again the following year and all eight branch stores and the online shop were closed with the end of the autumn / winter collection in February 2017.

Since 2016, the group has also expanded its international presence: in 2016 it entered the United Arab Emirates and in 2017 in Belarus, Serbia and, with the first reserved store on Oxford Street in London, also in the United Kingdom. In the same year, business operations in Saudi Arabia were discontinued.

Expansion into Kazakhstan, Israel and Slovenia followed in 2018; In 2019 the first stores opened in Bosnia and Herzegovina and Finland.

At the end of January 2020, the LPP sales network comprised 1,746 retail stores with a total area of ​​1.23 million square meters.

Stores and distribution centers

LPP has a distribution network in 25 countries that includes a total of 1,700 stores from five clothing brands.

In 2017, LPP opened a new distribution center in the SEGRO Logistics Park Stryków near Łódź , from which the e-commerce markets with the Reserved, Mohito and Sinsay brands are served. Arvato acts as the operator of the facility . At the same time, LPP opened a similar center near Moscow.

Due to the further development of the distribution network and e-commerce, the company made the decision in 2018 to build a distribution center in Brześć Kujawski and to open a warehouse in Romania. A year later, the company also signed a contract for the lease of warehouse space in Slovakia, which will be used to serve the company's online shop customers from Slovakia, the Czech Republic, Hungary, Slovenia, Croatia and Bosnia and Herzegovina.

The company can sell over 265 million items of clothing and accessories annually.

production

LPP does not have its own factories; production is carried out entirely by contract manufacturers . More than 95% of the company's 1,200 suppliers come from Asia, primarily from China (36.4% of total purchases) and Bangladesh (31.4%), as well as from Turkey (7.1%), Cambodia (6, 1%), Myanmar (6.0%), Pakistan (5.4%) and India (3.1%). About 2.5% of the products come from Poland, another 2.0% from other European countries, as well as Morocco , Tunisia and Egypt .

The company has had a branch in Shanghai since 1997 and, since 2015, in the capital of Bangladesh , Dhaka . These representatives take on the tasks of supplier acquisition, support, coordination and monitoring of individual production steps as well as quality control within the group.

After the building collapse in Sabhar , a factory accident with more than 1,100 dead and more than 2,400 injured, it became known that clothing had also been manufactured in the collapsed factory on behalf of LPP. Since then, LPP has been working on the introduction and implementation of standards to improve safety and working conditions in the clothing industry in Asia since 2013.

A code of conduct has been in place for all suppliers who work with LPP since 2014. It refers to the essential provisions of the Convention of the International Labor Organization and the Universal Declaration of Human Rights and defines requirements for suppliers, for example with regard to their remuneration policy, the employment ban for children, volunteer work, freedom of association and health and safety regulations. In addition to our own controls, regular inspections by the external audit group SGS are intended to ensure compliance with the rules defined in the code of conduct.

In addition, in October 2013, LPP was the only Polish clothing company to join the ACCORD agreement to improve safety in factories producing clothing in Bangladesh ( Accord on Fire and Building Safety in Bangladesh ). With the financial support of the signatories, a total of more than 1,600 Asian production plants and sewing shops were audited. Improvement measures were implemented in over 90 percent of the factories (as of the end of 2017). As part of the “Safety Committee Training” program, 882 training courses were held by the end of 2017, in which a total of almost 1.2 million employees took part.

With "Transition ACCORD", a three-year successor program was established in 2018, the main objective of which is to prepare the Bengali government to carry out independent inspections and audits in factories and to ensure the further implementation of measures to permanently improve working conditions. LPP is also one of the signatories of the "Transition ACCORD" agreement.

Share and shareholder structure

The company has been listed on the Warsaw Stock Exchange since 2001 . The issue price on May 16, 2001 was PLN 48.00. In 2014 LPP was included in the WIG20 index, which shows the 20 largest companies in Poland by market capitalization . In the same year LPP was included in the MSCI Poland index.

The company's share capital is divided into a total of 1,502,423 bearer shares of series A and C to L and 350,000 registered shares of series B with a nominal value of PLN 2.00 each. The registered shares each grant 5 votes at the general meeting ; the bearer shares each have one vote.

Shareholder structure of LPP SA
as of January 31, 2020
Shareholders Number of shares held Share in the share capital Share of voting rights
Marek Piechocki (via the Fundacja Semper Simul Foundation ) 319.208 17.2% 31.5%
Jerzy Lubianiec (via Fundacja Sky Foundation ) 226,338 12.2% 28.6%
Own shares 18.006 1.0% 0.0%
Free float 1,288,871 69.6% 39.9%

Controversy over tax avoidance 2014

In January 2014, it was announced that LPP had transferred trademark rights to subsidiaries in Cyprus and the United Arab Emirates shortly beforehand and in 2011 for tax avoidance purposes . In February 2015, the company announced that it wanted to transfer the trademark rights back to the Polish parent company.

According to a report by the Ministry of Finance , LPP was the third largest corporation tax payer among Polish trading companies in 2018.

year Turnover (billion PLN) Annual surplus (million PLN) Corporation tax (million zł)
2018 6.9 1,044 144.8
2017 6.1 536 41
2016 5.2 243 6th
2015 4.8 419 44
2014 4.4 622 86
2013 3.8 542 87
2012 3 393 57

CSR and charity activities

Since its inception, LPP has transferred more than PLN 20 million to those in need, thereby supporting almost 1,000 organizations. In December 2017, LPP established the LPP Foundation to continue its longstanding charity work. The aim of the activity is to support people who are at risk of social exclusion in a difficult life situation. It is also intended to protect human health.

Web links

Commons : LPP  - collection of pictures, videos and audio files

Individual evidence

  1. ↑ a b c d e f g h i j k l m n GK LPP SASKONSOLIDOWANY ROCZNY RAPORT ZA 2019/20. (PDF; 7.0 MB) May 21, 2020, accessed on May 23, 2020 (Polish).
  2. ↑ a b LPP debiutuje w Finlandii: polski producent odzieży obecny na 25 rynkach. October 18, 2019, accessed February 6, 2020 (Polish).
  3. ↑ a b RAPORT ZINTEGROWANY ZA ROK 2019/20. (PDF; 10.0 MB) May 21, 2020, accessed on May 23, 2020 (Polish).
  4. ↑ a b Główny Rynek GPW - Karta spółki. Retrieved February 6, 2020 (Polish).
  5. ↑ a b MSCI POLAND IMI (USD). Retrieved February 6, 2020 .
  6. ↑ a b c d HISTORIA LPP. Retrieved February 6, 2020 (Polish).
  7. ↑ Debiut LPP SA po 48.4 zł, o 0.83 per cent. wyżej od ceny emisyjnej. May 16, 2001, accessed February 6, 2020 (Polish).
  8. ↑ Nair, A., Karweta, M .: Poland's LP In: The CASE Journal Vol. 4 No. 1, 2007, ISSN  1544-9106 , pp. 34-56
  9. ↑ Wioletta Kakowska-Mehring: Bielizna Esotiq i Henderson never zniknie for rynku. February 5, 2011, accessed February 6, 2020 (Polish).
  10. ^ Magdalena Laskowska: LPP i Artman połączą siły. April 11, 2008, accessed February 6, 2020 (Polish).
  11. ↑ a b LPP EQUITY STORY - GLOBAL ASPIRATIONS. May 2019, accessed on February 6, 2020 .
  12. ↑ Komunikat indeksowy. February 10, 2014, accessed February 6, 2020 (Polish).
  13. ↑ Tallinder - pierwsza marka premium w portfolio LPP. January 12, 2016, accessed February 6, 2020 (Polish).
  14. ↑ Decyzja o zamknięciu marki Tallinder. September 7, 2016, accessed August 11, 2019 (Polish).
  15. ↑ oprac Łukasz Pałka: LPP ma pierwszy salon Reserved w Londynie. Spółka zainwestowała 20 mln zł. September 6, 2017, accessed February 6, 2020 (pl-PL).
  16. ↑ PTWP: LPP rusza na podbój nowych rynków. Retrieved February 6, 2020 (Polish).
  17. ↑ LPP otworzył w Bośni salony pięciu swoich marek. Retrieved February 6, 2020 (Polish).
  18. ↑ Metki polskiej firmy w gruzach fabryki w Bangladeszu. May 27, 2013, accessed February 6, 2020 (Polish).
  19. ↑ Forum Odpowiedzialnego Biznesu: Kodeks postępowania LPP. Retrieved February 6, 2020 (pl-PL).
  20. ↑ PTWP: LPP dba o warunki pracy. Tysiące pracowników azjatyckich fabryk objętych szkoleniami z zakresu bezpieczeństwa. Retrieved February 6, 2020 (Polish).
  21. ↑ 2018 Transition Accord in Bangladesh swells to more than 100 brand signatories. Retrieved February 6, 2020 .
  22. ↑ LPP przenosi marki na Cypr, internauci są oburzeni. January 7, 2014, accessed February 6, 2020 (Polish).
  23. ↑ LPP wchłonie swoją cypryjską spółkę, która posiada znaki towarowe grupy. May 26, 2015, accessed February 6, 2020 (Polish).
  24. ↑ 2018 - Ministerstwo Finansów - Portal Gov.pl. Retrieved February 6, 2020 (pl-PL).
  25. ↑ PTWP: Wartość pomocy charytatywnej LPP przekroczyła 20 mln złotych. Retrieved February 6, 2020 (Polish).
  26. ↑ Grupa Wirtualna Polska: 20 milionów pomocy charytatywnej od LPP. Polska firma dzieli się sukcesem. February 20, 2019, accessed on February 6, 2020 (pl-PL).
  27. ↑ Fundacja LPP wspiera - Oficjalna strona LPP SA. Retrieved February 6, 2020 .