Summary Report
2023
We present the report of the activities of Grupa PSB Handel SA in 2023. 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’S AUTHORITIES, CAPITAL, EMPLOYEES AND SHAREHOLDERS STRUCTURE OF GRUPA PSB
In 2023 the company’s bodies – the Management Board and the Supervisory Board consisted of members chosen by shareholders at the Annual General Meeting in 2022. The Management Board is elected for a three-year term, while the members of the Supervisory Board – two-year. Another Annual General Meeting will take place on 28th May 2024.
On the 31st of December 2023 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. The Company can only have registered shares and not preference ones. According to §10 sec. 5 of the Statutes of the association, no shareholder can possess more than 5% of the company’s initial capital.
At the end of 2023, the shares of Grupa PSB Handel SA were possessed by 943 shareholders including: 1 foreign company (1.32% of the capital), 15 joint stock companies, 119 limited liability companies, 21 limited liability companies-limited partnerships, 2 cooperatives, 8 civil partnerships, 2 limited-joint-stock companies, 10 limited partnerships, 69 general partnerships, 696 natural persons.
According to another systematics, the stock ownership may be divided into: trade companies – 49.11% of the capital share and number of votes, manufacturers (the Company’s contractual Suppliers) – 33.59% of the capital share and number of votes, and natural persons without business activity – 17.30% of the capital share and number of votes (in this figure 8,03% – Company’s employees).
In 2023 employment in the company was decreased by 14.83% in comparison with 2022. At the end of last year the Company employed 488 people (244 women and 244 men). Over a half of the employees (52%) had a university degree.
2. GENERAL RESULTS OF GRUPA PSB
At the end of 2023 Grupa PSB consisted of 403 trade companies, with the total number of 286 builders merchants and 77 PSB Profi centres as well as 359 PSB Mrówka outlets. During this period, PSB gained 11 new partners, while the whole network was enlarged by 22 points of sale.
According to the market research in 2023 each brand of Grupa PSB was recognised by as much as 81% of respondents: Grupa PSB brand – by 60% of Poles, while PSB Mrówka – by 76% and PSB Profi – by 43%.
Total revenue of Grupa PSB network in 2023 was estimated almost 9 billion PLN and it was 11% lower in comparison with the previous year’s. Grupa PSB has almost 18% share in Polish market of construction materials distribution. PSB points of sale accomplish significant part of supplies through the Central office – Grupa PSB Handel SA, which revenue in 2023 was estimated 3.9 billion PLN. Revenue of the PSB Central office was 6% lower y/y which gives less slump than a market trend and shows higher share of Partners’ purchases through the Central office.
3. DEVELOPMENT STRATEGY
Digitalization – digitalization, unification and integration of Partners’ and the Central office’s systems. Within this pillar the following strategic projects were realized in 2023:
- implementation of the automatic invoicing at the Central office,
- implementation of EDI,
- digitalization of sale conditions,
- reconstruction of Extranet,
- Portal of Promotions,
- new versions of ERP system,
- analitycal visualizations,
- targeting systems,
- establishing system to manage regional activities,
- implementation of Asana,
- workflow of documents and costs circulation,
- Prophix – budgeting system,
- digitalization of delegations and leaves.
Trade conditions – the PSB Central office focused on trade conditions improvement and active sale.
The strategic projects implemented in 2023 within this pillar were:
- positions of Category Managers responsible for assortment groups,
- sale targeting,
- active searching for new suppliers,
- regular promotional actions (over 820),
- standardization of the network offer – Project 3000 SKU.
Marketing and communication – omnichannel attitude and joint brand creation, advertising campaign „ALL” and standardization of communication at the network.
Within this pillar in 2023 Grupa realized the projects including:
- implementation of joint campaign „ALL” for both distribution channels,
- standardization of marketing communication,
- sharing the ready-made advertising materials with PSB points of sale,
- project of regional activities,
- standardization of promotional leaflets,
- creation of new publication, PSB Puls,
- new book of outlets visualization.
Human resources – investment in employees’ growth through trainings, motivatory systems and attractive work conditions.
In 2023 Grupa PSB realized the following projects:
- participative style of management,
- appointment of Management Committee (MC),
- sales meetings,
- committee for new suppliers,
- committee for receivables,
- onboarding of new employees,
- trainings for employees of the Central office and PSB network, in this figure: sale, software service, negotiations, management skills, category management, languages, law services.
Capital and finance – Grupa PSB focused on cost optimalization and accounting liquidity.
In 2023 the following projects were accomplished:
- securing the accounting liquidity,
- prompt payments to suppliers,
- decreasing cost of the Central office management,
- safe accounting.
Summary
In 2023 Grupa PSB realized as many as 76 projects within 5 pillars of the Company’s growth strategy. It is worth emphasizing that all the projects were accomplished according to the milestones planned in the PSB strategy. The number of projects and their compatibility with the strategy’s assumptions, prove Grupa PSB was managed effectively and its last year development goals were accomplished.
4. TRADE EXCHANGE – ASSORTMENT OF GRUPA PSB HANDEL SA
5. MARKETING STRATEGY
In 2023, the Company implemented joint advertising campaign “ALL” for both distribution channels according to the strategy. Clients received same advertising message from each media. For traditional channel (wholesalers and Profi centres) the message was: professionally, fast, close ALL, while for the modern one (PSB Mrówka outlets): simply, fast, close ALL. Both catchwords reflect values and benefits each channel offers.
Grupa PSB realized the omnichannel attitude to secure clients with coherent purchase experience, regardless the sale channel they chose. Positive impression connected with the brand contributed the customer loyalty and repeat purchases.
The company continued, together with Partners and Suppliers, whole Poland and local marketing activities. Thanks to the promotional activities in 2023 PSB brand gained recognition level of 81% which was increased in comparison with 79% in the previous year.
Advertisement and promotional campaigns
Advertising strategy of PSB was based on strengthening the brands of PSB and its Partners in customers’ awareness throughout different advertising activities. The key purpose was to provide trade offer to the potential and existing clients to increase their engagement and loyalty.
PSB strategy is based on omnichannel attitude, where both online and offline access channels were integrated to enable coherent communication with customers as well as facilitate access to trade offer. As a result client could easily find information about products and services offered by PSB both online and in-store.
The main media for advertisements of PSB brands were:
- Television – product and sponsoring advertisements and product campaigns supporting PSB Mrówka promotional leaflets,
- Radio – spot campaigns, radio sponsorship, campaigns in Mrówka radio,
- Promotional leaflets
- Own publications – bi-monthly magazine “Głos PSB” (Voice of PSB), “Informator Statystyczny” (Statistical Informant),
- External advertisement
- Internet – websites (www.mrowka.com.pl and www.grupapsb.com.pl), Facebook, Instagram, TikTok, LinkedIn, YouTube channel, Partners’ Google profiles, dedicated campaigns.
Mrówka Marketplace
There is e-commerce platform within www.mrowka.com.pl website that allows PSB Partners to sell products from their offer to internet client.
In 2023, Grupa PSB continued development of online sale and reservation processes. The number of implemented points of sale was doubled last year – from 75 in the beginning of 2023 to 175 in the end of the year, which allows PSB to reach more online customers offering them much easier way of purchase.
Media about Grupa PSB
In 2023 media published almost 20,000 publications about Grupa PSB brands, which is averagely 55 pieces of information daily. Grupa PSB was a subject of interest to media for different reasons.
The publications were about wide range of branch topics, such as changes of building materials prices, sale results and general situation on construction market. Moreover, Grupa PSB seems to be one of the main opinion forming companies in the branch.
Fairs and Conferences of Grupa PSB
The PSB fairs give Suppliers possibility to present their offers, commence branch meetings as well as concluding contracts with PSB Partners. Such events are organized three times a year which enables regular meetings to build business relations among participants. Such initiatives support trade growth and cooperation in the branch.
PSB branch conferences are one of the key element of the strategy. They enable participants to exchange knowledge and experience, get acquainted with new trends and innovations as well as inspiration and motivation to face new challenges and actions.
Presently there are three such events during a year:
PSB Spring Fair
PSB’s Spring Fair is an every year event. In 2023 it was organized for the 21st time, after two-year break, in stationary form at Targi Kielce. During the two-day event on 1st-2nd March 2023 ca. 14,000 contracts with the total value of 392 million PLN were concluded. The event was attended by over 350 PSB Partners and 280 exhibitors – contractual PSB’s Suppliers. Such an impressive number of contracts demonstrates an intensive trade and business activity during this event.
During the banquet at the occasion, Grupa PSB celebrated its 25th anniversary on the Polish market. PSB Board presented commemorative statuettes to the biggest Partners of the network as well as Suppliers for their commitment in Grupa PSB growth.
There was a conference for PSB Partners and Suppliers a day before the Fair with inspiring discussion panels with experts.
PSB Autumn Fair
The second yearly fair event is the Autumn Fair in September. It was organized for the 9th time last year and it was commenced in an online form. There were 76 exhibitors (PSB’s biggest Suppliers) and over 300 PSB Partners participated in this event. Totally, ca. 5,000 contracts with the value of 187 million PLN were executed.
PSB Garden and Decorations Fair
The 6th edition of the Garden and Decorations Fair took place on 22nd November in Targi Kielce. Almost 1,300 people took part in the event. Over 230 PSB Partners and 106 Suppliers completed over 5,400 contracts with the value of almost 105 mln PLN.
During the fair, for the first time, the Product catalogue for PSB promotions was presented. It contains products connected with 3,000 SKU 2.0 project as well as articles chosen for 2024 spring promotions.
There was a “Family foundations” conference, a day before the fair. It gathered many participants willing to get the valuable knowledge about the newest types of succession.
Payback loyalty program
Mrówka network has been participating in a multi-partner loyalty program Payback for ten years. In 2023 outlets issued over 413,000 new cards of the program with PSB Mrówka logotype. Program participants made ca. 5 mln transactions of the total 600 mln PLN.
In 2023 a new functionality “Cheaper with Payback card” became very popular. Additional benefits and discounts for chosen products attracted more clients to the loyalty program.
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 2023 ca. 640 points of sale made purchases of ca. 4.5 mln PLN in the store.
6. CORPORATE SOCIAL RESPONSIBILITY
Every year Grupa PSB with its Partners realizes various CSR activities, such as social and charity initiatives. They are e.g. education activities, support for local societies, improvement of inhabitants’ living conditions as well as cultural and sport activities promoting culture and healthy lifestyle.
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Social activities connected with 25th anniversary of Grupa PSB
In 2023 Grupa PSB celebrated its 25th anniversary on Polish market. Such round anniversaries are always an essential moments for the companies as they symbolize their stability, successes as well as contribution to the branch and society. It is also a perfect opportunity to summarize the foregoing achievements and commence CSR activities.
On this occasion PSB Central office organized three CSR activities that engaged also PSB Partners:
“We plant the trees”,
“We run together”,
“We donate blood”.
“Bezpieczna droga do szkoły” (“Safe way to school”) education activity
Another edition of whole-Poland activity started simultaneously with new school year. This great initiative is organized by Mrówka outlets and police officers and its purpose is to educate pupils about rules of safe movement in road traffic. That is essential for their health and life. In addition to this children receive reflective road studs (such as: pendants, armbands or vests), that significantly improve visibility on the road.
7. EXPANSION OF PSB NETWORK
Mrówka outlets
The modern network called PSB-Mrówka was enlarged by 15 outlets in 2023, thus at the end of 2023, PSB retail network consisted of 359 outlets, in this figure 82 Mini-Mrówka outlets. The total revenue of all outlets was estimated 3.8 billion PLN.
The new shops were opened in the following localities: Bisztynek, Chodzież, Giżycko Iłża, Lidzbark, Miękinia, Namysłów, Oława, Puck, Radymno, Sędziszów, Sierpc, Wieluń, Wieruszów and Zblewo.
In 2024 Grupa PSB plans to open another 20 retail outlets.
For the modern channel the following periodical activities were implemented: every week Mrówka price hits with very attractive purchase conditions of chosen products as well as Tuesday Mrówka actions. Moreover, the image of the network, leaflets and billboard advertisements were standardized.
PSB Profi centres and builders merchants
In 2023, the traditional channel was enlarged by 7 new points: in this figure 2 PSB Profi centres and 5 builders merchants. At the end of last year there were 77 Profi centres and 286 wholesalers that made over 4.6 billion PLN revenue in total.
New PSB Profi centres were opened by Partners in the following localities: BAT Miszewo and BUDIMET Gorlice, while wholesalers: DĄBROWSKI Annopol, OKNO-BUD Przytyk and Radom as well as TROPS Rypin and the Industrial and Garden Store Brzeziny.
For the traditional channel the following periodical activities were implemented: every week building price hits with very attractive purchase conditions of chosen products as well as Tuesday building actions. Moreover, Grupa PSB settled cooperation with producers landing the project of creating new concepts to impact construction market. The example is SIKA Hydroinsulation Center and Hydroinsulation zone.
8. TRAININGS AND CONSULTING IN GRUPA PSB
Trainings
According to the PSB growth strategy, in 2023 Grupa PSB focused on competence development throughout trainings for Partners and the Central office.
Commenced training programs concentrated on developing the competences and professional skills in different areas of business activity. They were adjusted to the changing market needs considering the newest trends and technologies. The main aspects are: the newest sale and negotiations technics, creating relations with clients, strategy of marketing and communication activities, e-commerce platform management as well as software service.
Trainings in Grupa PSB consisted of 21 topics within:
- Sale and customer service,
- Software service,
- e-commerce,
- managing skills,
- marketing activities
- social media,
- Academy of PSB Manager,
- Product category management.
In 2023 the above mentioned trainings were attended by 1880 people, the total time of the trainings commenced was 730 hours.
Consulting and auditing services
The Company for over a decade has offered consulting services to branch offices of both modern and traditional channels of PSB network. Specialists offer consulting services to the owners and managing staff in many areas such as: how to accurately manage their outlets and wholesalers, how to follow up the standards and procedures established by PSB and to support them in preparation for the right development strategy. The specialists offer services connected with management, merchandising and storage.
Till the present advisors and auditors completed over 600 audits (in few outlets even four times) and improvement programs in almost 400 PSB points of sale. In 2023 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.
There were 31 basic audits, 43 full audits, 57 implementation visits and consulting about garden and decoration branches as well as 9 audits in wholesale points of sale performed in 2023.
Regional business conferences
Business conferences of Grupa PSB that took part in September 2023 in 7 regions of Poland attracted many participants and brought many benefits both for them and whole organization. During the training and discussion panels participants gained skills necessary to effectively manage their organizations, they got acquainted to new solutions and shared knowledge and information. Discussion commenced in groups brought many valuable innovations and ways to implement them in our organizations
9. SERVICES FOR PARTNERS AND SUPPLIERS
Grupa PSB, taking advantage of the scale effect, for many years has been acquiring cheaply construction and renovation materials as well as other means and services that are necessary for every wholesale house and Mrówka shop. Thanks to the company’s scale and purchase amount Grupa can negotiate better prices and more advantageous logistic conditions which allow to save time and cost of delivery. Those offers are available also for Suppliers.
They are e.g.: purchase of fuel, 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
10. INVESTMENTS AND PLANS FOR 2024
Last year, the total investment expenditures of Grupa PSB Handel SA amounted to 1.9 mln PLN. The most important positions of the expenditures included: installation of charging points for electric cars, construction of Mrówka outlet in Stąporków (changed to investment in the property), expenses on Logistic Centre in Pińczów, construction of meteoric water collector, purchase of machines, equipment and means of transportation as well as intangible assets.
In 2024, the Company plans investment expenditure amounting to ca. 8.3 mln PLN.
11. 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. Main financial profit that results from the better purchasing conditions, additional bonuses and other savings are transferred to the shareholders.
In 2020 the Management Board of Grupa PSB Handel SA, directed by the precautionary principle, decided to place the reserve for future tax liabilities (for the years 2013-2015) of the total amount of 194 mln PLN. The reserve has been updated every year. In 2023 it was enlarged by the amount of 5.8 mln PLN – that resulted of the update of the interest on above mentioned liability and decreased by the total payment of 60 mln PLN for the years 2013 and 2015. The amount of 60 mln PLN was paid by the Company in 2023 to the tax office account despite there was no obligation to do it. On the balance sheet day of 31st December 2023 the overdue payment was 22 mln PLN plus interest, in this figure the amount of 2.6 mln PLN refers to 2013 and 19.4 mln PLN refers to 2014. Obligation for 2015 has been paid fully.
Revenue from sale of products, goods and materials in 2023 amounted to 3.9 billion PLN (6.5% slump vs. 2022), while the profit estimated 33.7 mln PLN. Working capital of the Company in 2023 dropped slightly to 133.7 mln PLN at the end of 2023 vs. 2022. Current ratio was 1.26, while the quick ratio was 1.09, thus the Company did not have problems to pay up its liabilities. Payment of significant amount to the tax office did not affect negatively the company’s cashflow, while the remaining payment to the tax office will not be due to pay once but will be paid in longer period of time. Thus the Board is not concerned about the cashflow indicators drop.
In 2023 the Company paid “sale bonuses” amounting to 130.8 million PLN and “loyalty-marketing” bonuses amounting to 9.3 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 2023, the Company paid 140 mln PLN of bonuses to its Partners.
Fixed assets of the Company were 171.5 mln PLN and were slightly lower in comparison with the last year’s (by 3.7%). During the year 2023 the Company’s Board decided to terminate trade activity of the outlet in Andrychów and to lease the building together with part of equipment. Also, the construction of shop in Staporków has been stopped, the Company is planning to sell it. Two above mentioned objects were qualified as investments in properties, thus the balance sheet does not show drop of tangible non-current assets but increment of long-term investments.
In 2023 Grupa PSB noted a significant drop in stock level (26%). It was connected with implementation of more effective stock management that secures planned stores rotation on the level of 65 days.
Last year Grupa PSB continued the process of implementation of full electronic invoice circulation, both with partners and suppliers. It consists of 49.2% of the invoices sent and 83,5% of the invoices received.
