Record-breaking billion zlotys in taxes from LPP
Over the last five years LPP has contributed nearly four billion zlotys to the Polish budget by way of paid taxes and levies; According to estimates, the 2019 state budget revenues from this company will exceed one billion zlotys, giving a record result in its history.
The company from Gdańsk, listed on the Warsaw Stock Exchange, in 2018 alone paid almost one billion zlotys to the state budget by virtue of taxes and levies. As per the statement of the Ministry of Finance, by paying CIT in the amount of over144 million zlotys LPP earned a place among 30 payers contributing the highest amount of income tax. In this respect, the company ranked among top three companies in the commercial sector. According to estimates, all the levies of LPP paid to the state budget for 2019 will exceed one billion zlotys.
The contribution to the Polish economy on such a scale is possible, among others, thanks to the combination of the company’s active operation on the domestic and foreign markets alike, yet paying taxes in Poland. LPP and its brands – Reserved, House, Cropp, Mohito and Sinsay, are already available on 39 markets. More than 1700 stores with a total area of over one million sq.m. operate in 25 countries in Europe and Asia, as well as in the Middle East. The collections offered in brick and mortar stores of the abovementioned brands can be purchased by consumers in such world fashion capitals as: London (Reserved store is located on the famous Oxford Street), Moscow, Berlin or Tel Aviv. The brands’ apparel can be ordered in as many as 30 countries via online store. Estimated export revenues of LPP for 2019 amounted to over three billion zlotys. In the second quarter of the previous year, for the first time in the history of the company, the proceeds from foreign sales exceeded the revenues from domestic sales, and this trend continued in the following two quarters.
Parallel to the successes in the international context, the company continues to strengthen its Polish roots. Its headquarters is to remain in our country, the collection design will continue to take place here, strategic decisions related to the development of the company will be made here and taxes will be paid here, too. LPP is also considering further expansion. – Our long-term strategy assumes the development of our online sales channel and strengthening our position on the markets where we are already present, as well as reaching out to new ones – says Przemysław Lutkiewicz, Vice President of the Management Board of LPP. – As a Polish family business with global aspirations, by increasing our presence in the world, our intention is not only to support the domestic economy, but also to promote Polish creative thought and our know-how – he adds.
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LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 200 million pieces of clothing to three continents. LPP plays another important role as it employs over 25 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.