Prochnik Focuses On Ukraine

LODZ, Poland -- Prochnik, the clothes producer from Lodz, wants to have sixty shops in Poland and 15 abroad. It also dreams about its first income in many years.

Prochnik, the producer and distributor of men’s clothes, raised the capital in its Ukrainian subsidiary by USD 150,000.

The funds will be spent to develop the shop network.

Today, there is only one Prochnik shop in Ukraine but within two years, the company wants to increase the number to five, and then to 15.

The company wants to develop quickly in Poland.

“We will launch 10 new shops annually”, Krzysztof Okonski, Prochnik deputy CEO said.

Today, the network consists of 21 shops. There are planned to be 60.

Prochnik will develop its Polish network from the funds raised in the previous issue.

It cannot count on bank credits because it has had no income recently.

Last year, the company and PLN 10.9m (EUR 2.8m) of sales and PLN 3.7m of net loss.

There are no forecasts for this year but the management hopes that the company will get out of the red.

In the first half, the company had a loss of PLN 621,000 against PLN 12.2m of sales.

“The fourth quarter is usually the best for us. Up to 40 percent of sales are generated then”, the CEO said.

Investors did not react enthusiastically to Prochnik’s plans. Yesterday, the stock closed at PLN 1.25, or 1.6 percent lower.

Source: Portal Biznesowu