Redan has published its financial report for the first half of 2021. In this period, the company achieved a turnover of PLN 42.8 million, which means an increase of 11% year-on-year. The change in the principles of cooperation with Top Secret also translated into an increase in the achieved trade margin. In subsequent periods, Redan intends to develop more strongly the provision of logistics services to entities other than just Top Secret. To this end, Dariusz Młodziński was appointed to the company’s management board.
For Redan, cooperation with Top Secret has remained its core business in the first half of this year. This included organising transport of goods from suppliers to its warehouse in Poland, carrying out customs clearance of goods, storage and dispatch to shops and online customers in Poland, as well as sales and deliveries to foreign customers. In the first half of this year, these services provided Redan with 88% of revenues and 87% of the generated trade margin. However, the change in the rules of cooperation introduced in August last year led to higher margin generation. As a result, in the first half of this year Redan’s trade margin on sales of Top Secret goods to customers in Poland increased from 7.8% to 11.2%. It amounted to around PLN 4.0 million on turnover of 35.7 million, compared to PLN 2.5 million on revenue of PLN 32.4 million in the first half of 2020.
“The change in the model of cooperation with Top Secret brings positive effects in the form of higher margins obtained. We also achieved a significant increase in the scale of turnover in foreign operations (+246%), which is the result of taking over the servicing of foreign markets from the Top Secret group, as well as expanding the group of existing contractors. However, the results of the first half of this year were disturbed by one-off transactions related to, among other things, an increase in the value of write-downs on older goods from previous seasons, purchased before the new conditions of cooperation with Top Secret came into force. In the future, for goods bought for Top Secret from September 2020, Redan will no longer incur such losses. In April last year there was also a one-off sale of goods already covered by a 100% write-down, which boosted last year’s results by PLN 2.4 million,” said Bogusz Kruszyński, President of Redan S.A.
Overall, Redan achieved a turnover of PLN 42.8 million in the first half of this year, which is an increase of 11% in comparison with the same period of the previous year. The sales margin grew by 2%, to PLN 6.7 million. On the other hand, selling and general management costs increased by 24% to PLN 9.3 million, among other things as a result of taking over the costs of transporting goods to Top Secret shops in Poland. As a result, the company incurred a net loss of PLN 3.6 million, compared to a loss of PLN 1.6 million the year before. Excluding the stock operations and the change in the inventory write-down, the company recorded a margin expansion of PLN 2.3 million (+41%) on sales growth of PLN 6.4 million (+18%).
In the following periods Redan intends to develop the provision of logistics services to new external entities. To this end, the company’s supervisory board appointed Dariusz Młodziński to the company’s management board. The new member of the management board has been with Redan for five years, previously holding the position of logistics director. He gained his professional experience, among others, in Levi Strauss Poland as logistics director for Eastern Europe and then in the Diva Group and in De Care company as international logistics manager.
“Extending the composition of the management board with a person with vast experience in the development of domestic and international logistics is another step towards opening Redan up more widely to serving entities other than just Top Secret. We have the experience and competence to handle logistics efficiently, including especially operations related to the fulfilment of online orders, and this market is growing rapidly. We are able to provide services in this area efficiently. We are convinced that the share of turnover with new external partners will systematically grow,” stressed Bogusz Kruszyński.