Polish retailer invests in meat business

By Jaroslaw Adamowski

- Last updated on GMT

Polish meat business expansion

Related tags: Beef, Pork, Lamb, Poultry, Retailing, processing

Polish retail chain Grupa Dino Polska plans to invest further in increasing its production capacity, and launch a second facility in Poland, according to the company’s financial report for 2018.

Last year the company expanded the production capacity of its meat processing plant in Kłoda, in the country’s western region, and opened a new meat cutting hall as part of a larger investment programme worth PLN634 million (€147.7m).

The group operates a supermarket chain under the brand of Dino Polska, while Agro-Rydzyna is the sole supplier of fresh meat, and one of the main suppliers of processed meat products to the company’s chain of stores. In 2018, Agro-Rydzyna generated more than 15% of the group’s total sales, as indicated by data from the report.

Investments to raise capacities

“In the next few years, Grupa Dino Polska is planning to carry out additional investments to support the openings of new stores, including … developing the capacity of the existing plant operated by Agro-Rydzyna and replacing its production lines with new ones, as well as by launching a second plant in a new location,”​ the group said.

The new meat cutting hall “is fitted with the latest technological solutions that comply with high European standards”,​ according to the report.

The expansion plans mean that the company will need to increase its investment outlay for this year, according to the document.

“Implementing Grupa Dino Polska’s strategy to develop the Dino supermarket chain, as well as its logistics infrastructure and developing the production capacity of Agro-Rydzyna’s meat processing plant mean allocating significant funds to investments. The company expects its total investment spend in 2019 will reach about PLN850m,”​ the group said.

Agro-Rydzyna’s product portfolio comprises a wide range of poultry, pork and beef meat products. These include processed meat products such as hams, sausages, bacon and frankfurters, among others. The firm was set up in 1992.

Dino Grupa Polska’s development plans are supported by the group’s improved financial results for last year. For 2018, the retail chain reported total revenues of PLN5.84bn (€1.4bn), an increase of 30.8% compared with a year earlier. Dino Grupa Polska posted a net profit of PLN307.6m (€71.6m) for 2018, up 44% year-on-year, according to data released by the retailer.

Local businessman Tomasz Biernacki is the majority shareholder of Grupa Dino Polska, with a stake of 51.1%. Since April 2017, the group has been listed on the Warsaw Stock Exchange (WSE). Grupa Dino Polska's initial public offering (IPO) was valued at about PLN 1.65bn (€384.3m).

As of 31 December 2018, the group operated 997 stores with a total retail surface of 375,700m2​ across the country. Of these, 202 retail outlets were opened last year. The majority of the chain’s stores are concentrated in Poland's western and central regions.

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