Summary Report
2022
We present the report of the activities of Grupa PSB Handel SA in 2022. The purpose of the Company is to create optimal relations among merchant, industrial and service sectors, to satisfy collectively the construction and renovation needs of our fellow citizens.
1. COMPANY AUTHORITIES, CAPITAL, EMPLOYEES AND SHAREHOLDERS STRUCTURE OF GRUPA PSB
Changes in the Company
There was an Annual General Meeting of Grupa PSB’s shareholders on 27th May 2022 in Busko-Zdrój. During the meeting Grupa PSB’s shareholders decided to extend the staff of Management and Supervisory Boards as well as the election of the representatives of both bodies of the Company took place. Mr. Waldemar Podsiadło – the foregoing Board Member since 2020 became the CEO, the position hold by then by Mr. Mirosław Lubarski. The new Board Members became Mr. Piotr Kozina and Mr. Jacek Kowal. The following members of Supervisory Board for two-year term were elected by the AGM: Paweł Bezak (Omega Świebodzin), Sylwester Bogusz (Mrówka Lubartów, Łęczna), Roman Borucki (firma Solbet), Piotr Choszcz (Bat Sierakowice), Bogdan Pazgan (Pagaz Krzeszów), Dariusz Żułtak (Żułtak Nowy Dwór Mazowiecki) oraz Edward Derela (former Commercial proxy and Financial Director of the Company).
There was an Extraordinary General Meeting of Grupa PSB’s shareholders on 14th November in Kielce that brought another personal changes in the Company’s bodies. Due to the demission of Mr. Waldemar Podsiadło from CEO position, the bye-election took place. As a result, Mrs. Anna Kaminska was elected the second Board Member and Mr. Piotr Kozina was elected the CEO.
Shareholders elected as well a new Member of the Supervisory Board – Mr. Łukasz Tunkiewicz from Marbud company in Goleniów that replaced Mr. Edward Derela.
Also, the EGM accepted a new development strategy of Grupa PSB for the years 2023-2025 that is based on five keystones: digitalization, trade conditions, marketing and communication, human resourses, capital and finance.
Capital and shareholders structure of Grupa PSB
On the 31st of December 2022 the value of initial capital of the Company was estimated 53,275,000 PLN and it was divided into 53,275,000 ordinary shares of a nominal value of 1 PLN each.
At the end of 2022, the shares of Grupa PSB Handel SA were possessed by 960 shareholders including: 1 foreign company (1.32% of the capital), 16 joint stock companies, 124 limited liability companies, 30 limited liability companies-limited partnerships, 2 cooperatives, 8 civil partnerships, 3 limited-joint-stock companies, 5 limited partnerships, 72 general partnerships, 699 natural persons.
According to another systematics, the stock ownership may be divided into: trade companies – 47.99% of the capital share and number of votes, manufacturers (the Company’s contractual Suppliers) – 33.4% of the capital share and number of votes, and natural persons without business activity – 18.61% of the capital share and number of votes (in this figure 8,67% – Company’s employees).
In 2022 employment in the company was decreased by 1.7% in comparison with 2021. At the end of last year the Company employed 573 people (287 women and 286 men). Over a half of the employees had a university degree.
2. GENERAL RESULTS OF GRUPA PSB
At the end of 2022 Grupa PSB consisted of 423 trade companies, with the total number of 293 builders merchants, 355 PSB-Mrówka outlets and 75 PSB-Profi centres. During this period, PSB retail network was enlarged by 13 outlets, while 2 wholesale companies were transformed into modern PSB-Profi centres.
Revenue of Grupa PSB network from construction materials’ sales in 2022 estimated 9.6 billion PLN and it was almost 8% higher in comparison with the previous year’s. It is as a result of significant increments of most building-renovation materials prices.
The total revenue of PSB Central office (Grupa PSB Handel SA) was estimated 4.2 billion PLN and it was over 10% higher compared to 2021.
3. TRADE EXCHANGE
– ASSORTMENT OF GRUPA PSB HANDEL SA
In 2022 Grupa PSB traded with 500 Suppliers, that offered almost 500,000 assortment items.
Last year brought small changes in the assortment groups’ shares in the total Company’s revenue. The leading position went again to building chemicals (14.5%). Thermal insulations went up from the third to the second position (11.8%) and tools (10.6%) dropped to the third one. Wall materials, chimneys (9.6%) went up to the fourth position, while garden and hobby products (9.2%) dropped to the fifth position. As for the second five positions, drywalls moved up by two positions (4.7%). Another ten positions have not been changed significantly in revenue share of Grupa PSB beside the installation, heating (3.2%) that moved up by three positions.
In 2022, 10% (i.e. 348 mln PLN) of trade exchange with Partners was conducted through the two Logistic Centres of the Company. Goods of the value of over 208.6 mln PLN were taken from the storage house located in Wełecz, while the deliveries of the Logistic Centre in Wąbrzeźno valued over 139.4 mln PLN. Ca. 83% of the deliveries through the Company’s Logistic Centres was for Mrówka outlets.
4. MARKETING STRATEGY
In 2022, the Company continued the strategy of cross country as well as local marketing activities with its Partners and Suppliers. As a result, recognition of Grupa PSB’s brands has been increased. Last year, Grupa PSB brand was recognized by ca. 59% of Poles, whereas PSB-Profi brand by 45% and PSB-Mrówka shops by 75% of respondents.
Advertisement and promotional campaigns
The purpose of the advertising activities was to strengthen the value of PSB’s and its Partners’ brands in customers’ awareness as well as to provide the potential and existing clients with advertisements about trade offer. PSB strategy is based on omnichannel attitude, where both online and offline access channels were integrated to enable customers to consistently reach the offer. The campaigns were supposed to reach the target groups – private constructors, building companies and institutional investors.
The main media for advertisements were:
- Television – “Nasz Nowy Dom” (Our New House) program, campaigns supporting PSB Mrówka promotional leaflets, sponsorship of programs of renovation and garden topics, spot campaign for wholesale channel,
- Radio – spot campaigns, radio sponsorship, radio campaigns in Mrówka outlets
- Promotional leaflets
- Own publications – bi-monthly magazine “Głos PSB”(Voice of PSB), quarterly magazine “M jak Mrówka”
(A for Ant), “Barometr Budownictwa” (Building Barometer) and “Informator Statystyczny” (Statistical Informant), - External advertisement
- Internet – websites (www.mrowka.com.pl and grupapsb.com.pl), Facebook, Instagram, YouTube channel, Partners’ Google business cards, campaigns with dedicated content.
Mrówka marketplace
In 2022 Grupa PSB started steps for Company’s informatization and digitalization. In February, Mrówka marketplace on www.mrowka.com.pl website was launched.
It is e-commerce platform that allows PSB Partners to sell their products to online customers.
The marketplace went through implementation tests and there were 75 PSB’s points of sale using it by the end of December 2022 vs. 47 outlets in September 2022. Customers placed orders of the value of over 1 mln PLN, whereas an average basket value was estimated ca. 250 PLN.
Media about Grupa PSB
In 2022 media published almost 22,500 publications about Grupa PSB (64% more compared to 2021). Last year, due to the dynamical changes of building materials prices, Grupa PSB was providing media with multiple analyses and commentaries thus it became one of the most opinion-forming companies on the market concerning the following topics: prices changes trends of construction-renovation materials and their availability on the market, sale results or market situation connected with e.g. high inflation, prices increments of materials, electricity, gas, fuels or labour costs.
Fairs of Grupa PSB
The fairs give Suppliers possibility to present their offers, commence branch meetings as well as conclude contracts with numerous independent business entities united in Grupa PSB which, on the other hand, have opportunity to choose a supplier and place orders.
Presently there are three such events during a year:
PSB Spring Fair
The first one is the PSB’s spring Fair in March, that has been organized for the 20th time in 2022. Due to the pandemic restrictions it was commenced in online version. Negotiations between exhibitors and purchasers were organized in the form of Zoom video meetings. The integration of Zoom application with the PSB fair system enabled to combine utility of meetings arrangement and orders placing with online calls in tandem. During the two-day event ca. 13,000 contracts with the total value of 300 million PLN were concluded. The event was attended by 360 PSB Partners and 220 exhibitors – contractual PSB’s Suppliers. The value of orders placed estimated 302 mln PLN.
PSB Autumn Fair
The second yearly fair event is in September. Last year it was organized for the 8th time and it was the first PSB fair commenced in stationary form after pandemic. There were 60 exhibitors (PSB’s biggest Suppliers) and 200 PSB Partners participated in this event. Totally, ca. 4,100 contracts with the value of 151.5 million PLN were executed.
PSB Garden and Decorations Fair
The last yearly fair event is Garden and Decorations Fair in November. In 2022 it was organized for the 5th time, and for the first time it was commenced in Targi Kielce as an exhibition event. Its purpose is to enable Mrówka outlets prepare early for the spring season. The fair recorded 90 exhibitors – Suppliers of garden and decoration assortments and representatives of over 200 PSB Partners. The Partners completed over 4,400 contracts with the value of over 84.6 mln PLN.
Payback loyalty program
Mrówka network has been participating in a multi-partner loyalty program Payback for nine years. In 2022 outlets issued over 420,000 new cards of the program with PSB Mrówka logotype. Program participants made ca. 5.8 mln transactions in total.
PSB marketing store
PSB Partners can purchase e.g. company clothes, printing paper, shopping bags, minor advertising gifts and marking elements for branch offices of our network, in the marketing store. In 2022 ca. 640 Partners made purchases of ca. 4.8 mln PLN in the store.
5. CORPORATE SOCIAL RESPONSIBILITY
Every year Grupa PSB realizes various CSR activities: social, cultural, sport, charity, health, protection of natural environment and relations with different groups of stakeholders and employees.
The biggest CSR activities commenced by Grupa PSB in 2022 on whole Poland scale were: sponsorship of TV program “Nasz Nowy Dom” and educative activity for children “Bezpieczna droga do szkoły”.
Last year Grupa PSB carried on the following activities:
TV program “Nasz Nowy Dom” (“Our New House”)
about renovation and charity topics. Each episode transmitted by TV Polsat was watched averagely by 1.1 mln viewers. In 2022 Grupa PSB supported renovations of 24 houses, both financially and by donating building materials. Moreover, from the beginning of the sponsorship cooperation with the program we have helped improve living standards of over 190 families.
“Bezpieczna droga do szkoły” (“Safe way to school”) activity
– several dozen Mrówka outlets joined the activity, that allowed to visit over 100 schools and preschools and educate several hundred pupils about rules of moving in road traffic. Activities are organized together with schools and preschools administration as well as local police stations.
6. EXPANSION OF PSB NETWORK
Mrówka outlets
The network of retail points of sale called PSB-Mrówka was enlarged by 13 outlets in 2022, in this figure were 11 Mrówka shops and 2 Mini-Mrówka shops. At the end of 2022, PSB retail network consisted of 355 outlets (in this figure 80 Mini-Mrówka outlets). Their total revenue was estimated 3.8 billion PLN.
At the end of 2022 Mrówka network had totally over 500,000 m² of modern sale surface and employed over 7,500 people. The shops, depending on their surface, offer from few thousands to several dozen thousands of products necessary for renovation and maintenance of houses, flats and gardens.
An average Mrówka shop serves a population of 30.000 residents. The estimation shows that about 4 million households located mainly in villages and small towns purchase goods in our branch offices.
In 2023 another 15 retail outlets will be opened.
Profi centres
In 2022, the network of modern builders merchants was enlarged by 2 new points: OLMAR Trzebinia and DĘBOS Nysa. At the end of 2022 the network of PSB-Profi consisted of 75 branch offices that made over 1,8 billion PLN revenue.
In the above mentioned period of time Grupa PSB continued implementing and optimizing motivation systems as well as upgrading logistic and sale processes. The functions of the sale representatives were implemented and developed. Control units to minimise hazardous situations occurrence were implemented. Expositions and presentations of the whole construction systems were amended. Also, the assortment groups were expanded by new products.
7. TRAININGS AND CONSULTING IN GRUPA PSB
PSB Academy
– Grupa PSB has been organising the project for years, as different trainings for various participants. In 2022, after pandemic, the program was again realized by Grupa PSB.
e-learning platform
allows Grupa PSB to coordinate all training types for the whole network.
PSB Central Office, throughout its own specialists as well as its Suppliers’ realizes different series of trainings for network employees:- Technical trainings for the sales employees from retail and wholesale branch offices to increase the knowledge about Suppliers’ products and technologies
- Soft skills trainings for managers and sellers (sale, customer service and management).
- Mini-MBA of Grupa PSB – the series of trainings for managing staff and owners about team creation, finance for non-financiers, communication, motivating and delegation, negotiations, sale and logistics organization, time and self-management,
- Social media trainings
- Excel trainings
Auditing services
are offered by the Company’s specialists to PSB network’s retail and wholesale points of sale. The main purpose of the auditors is consulting of correct operation of outlets and warehouses, compliance with PSB’s standards and procedures as well as support in establishing the right development strategy. In 2022 there were below mentioned types of audits:
- Basic audits for newly opened Mrówka outlets
- Full audits for longer existing points of sale
- Audits and consulting dedicated to garden and decorations departments
- Audits dedicated to wholesale points and Profi centres
Totally 70 audits were performed in 2022.
8. SERVICES FOR PARTNERS AND SUPPLIERS
Grupa PSB, taking advantage of the scale effect, for many years has been acquiring cheaply various means and services that are necessary for every wholesale house and Mrówka shop. They are e.g.: purchase of fuel and electricity, mobiles, means of transportation, computer software and hardware, shop equipment and courier services. In these fields, the Company cooperates with a dozen Partners representing several economic areas, whereas particular merchant companies in greater or smaller extent, take advantage of the offered conditions.
9. INVESTMENTS AND PLANS FOR 2023
Last year, the total investment expenditures of Grupa PSB Handel SA amounted to 7.7 million PLN. The most important positions of the expenditures included: installation of charging points for electric cars, construction of Mrówka outlet in Stąporków, expenses on Logistic Centre in Pińczów, hardening of surface around Mrówka outlet in Grodzisk, buildings’ modernizations, purchase of machines, appliance and equipment, intangible assets, author’s rights.
In 2023, the Company plans to continue the already started investment tasks that would amount to ca. 6 mln PLN.
10. FINANCIAL RESULTS
The premise is, that Grupa PSB, as the entity separated from the members is a self-financing one, though oriented to gain a minimal profit. It should be sufficient to cover overheads and sustain the essential reserves that can guarantee obligations solvency towards suppliers as well as creditworthiness.
In 2020 the Managing board of Grupa PSB Handel SA, directed by the precautionary principle, decided to place the reserve for potential future tax liabilities (for the years 2013-2015) of the amount of 157.5 mln PLN for the main liabilities and 36.3 mln PLN for the legal interest, that constituted the total 193,8 mln PLN. The reserve is updated every year by the amount of interest on the main liability (interest update on 31st December 2022 estimates 10.4 mln PLN) and by the payments accomplished (in 2022 payments accomplished estimated 30 mln PLN).
After decision from 13th December 2021 passed by the Director of the Tax Office in Kielce concerning the year 2014 the amount of reserve was updated by the amount of reserve placed in 2020 for this year’s liabilities. The reserve was transformed into obligation and after deduction of the payment placed – 60 mln PLN, it was presented in the Company’s balance sheet on the 31st December 2022 (similarly to 31st December 2021) as “short-term liabilities – from taxes, custom fees, social and health insurances and other public duties imposed by the law”, together with current liabilities connected with them. Obligation is updated by the amount of interest accrued on the day of forming of the balance sheet for the year given. This obligation on 31st December 2022 was estimated 33.2 mln PLN, in this figure 19.4 mln PLN was the main liability and 13.8 mln PLN was interest.
Despite the Voivedeship Administrative Court passed a ruling suspending the execution of the decision for the years 2013 and 2014, till the present, Grupa PSB has paid the total 124.3 mln PLN on the account of the tax office. Revenue from sale in 2022 was the highest in PSB’s history and amounted to 4.169 billion PLN. (10.7% increment vs. 2021), while the profit estimated 39.6 mln PLN.
Working capital of the Company in 2022 was estimated 157.6 mln PLN and it was 5% higher in comparison with 2021. Current ratio was 1.33, while the quick ratio was 1.09, thus the Company did not have problems to pay up its liabilities.
Last year the Company paid “sale bonuses” amounting to 135.2 million PLN and “loyalty-marketing” bonuses amounting to 12.5 mln PLN – they constitute the income of the Company’s trade Partners and they are divided according to the engagement into sales and fulfilment of the contractual conditions. Totally in 2022, the Company paid 147.7 mln PLN of bonuses to its Partners.
Fixed assets of the Company were 178.1 mln PLN. The increment of 2.3% was as a result of increment of intangible assets and long-term receivables.
In 2022 Grupa PSB noted a significant increment of sale revenue – 10.7% in comparison with the previous year’s. Receivables amount increased by 28.4 mln PLN (5.9%). Receivables rotation was on the level comparable to the previous year’s and estimated 42 days.
In 2022 as a result of sale revenue increment the sale costs also increased by 6.7 mln PLN (11.9%) in comparison with 2021. Mainly it was caused by increase of the following costs: transportation (1.9 mln PLN), advertising (1.6 mln PLN) and activity of branch office in Warsaw and Mrówka outlets.
