WOOD Flash – LPP: key takeaways from the conference call on the exit from Russia
On 18 March, LPP organised a conference call to: address points made by Hindenburg Research; present details of the structure of its exit from the Russian market; provide the preliminary results for 4Q23; and maintain its FY24E guidance. The call had over a thousand participants. LPP’s CEO stated that the company has no operating or trading activities in Russia and has no intention of returning to that market. On the basis of the agreement with the former manager of its Russian operation and a Chinese consortium, however, LPP is proving support to the new owner during the 2022-26 transition period. LPP has disclosed its sales to Russia through agents, for the first time, of c.PLN 1.2bn p.a. in FY22 and FY23 and an expected PLN 630m in FY24E, falling to zero in FY25E. LPP claims to be generating no profits on these revenues currently. Management expects a continuation of strong growth elsewhere, fuelled mainly by the expansion of Sinsay, and maintained its FY24E guidance of 21% yoy growth in sales and at least 10% yoy growth in EBIT.LPP SA Gdansk is clothing manufacturing group based in Poland. Co. is engaged in the design and distribution of clothing. Co.'s headquarters is located in Gdan'sk, including designing resources for all its brands. Co.'s stores offer its customer products that include jackets, shirts, sweaters, dresses, skirts, trousers, jeans, underwear and garment products. Co. also sells promotion clothing under a special selected brand. Co.'s product offering is addressed to a variety of customers for whom separate brands and chain stores are set up. Co. launches clothing under such brand names as: RESERVED, CROPP, MOHITO, HOUSE, and PROMOSTARS.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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