News Parkiet

Personal finance

Poles switch from savings to consumption

Consumer demand in Poland may soon recover thanks to a recent shift from savings to personal consumption, driven by declining yields on various savings instruments. The trend continues to accelerate since December 2001, when Polish government first started levying capital gains tax on bank savings.

Depending on estimates, Poles withdrew between 8 and 12 billion zloty from their bank accounts at the end of 2003. Withdrawals from tax-exempt investment funds plus redemptions of government and corporate bonds totaled another 5.6 billion zloty. Sales on new investment certificates, government and corporate bonds reached just 3.6 billion zloty. At least 10 billion zloty (U$2.5 billion) remains unaccounted for. Economists say, much of that amount will be spent on consumer durables, such as new cars and home appliances. Poles are also buying new houses, says Marek Zuber, chief economist at TMS asset management and consulting group. Figures published by the Main Statistical Office show the number of housing units completed between January and November grew 72 percent year-on-year.

Apparel

LPP eyes new markets

LPP retailer will spend as much as 40 million zloty ($10 million) next year to build new clothing outlet chain. Its new Cropp brand will be targeted at a younger audience, LPP's deputy CEO Dariusz Pachla told PARKIET yesterday.

The firm, whose shares have risen tenfold since a successful IPO in early 2001 also says it will increase its presence in Ukraine. It already has two stores in the city of L'viv and in Ukrainian capital Kiev.

Separately, LPP said it may exceed initial earnings forecasts of 31 million zloty on sales of PLN 390 million. Its shares, which are listed on Warsaw Stock Exchange rose to a new all-time high of 519 zloty ($130), giving the company market capitalization of 884 million zloty.

Breweries

Carlsberg raises stake in Okocim to 85 percent

Carlsberg Breweries bought 6 percent stake in publicly traded Polish subsidiary Carlsberg Okocim from Bitburger group. Danish firm paid almost 38 million zloty ($9.5 million) to increase its stake in Okocim to 85 percent.

Okocim is Poland's third largest brewer by sales, trailing SABMiller's Kompania Piwowarska and Heineken's Żywiec group. It's market share recently rose to about 15 percent.

Information technology

Wincor Nixdorf no. 1 on Polish ATM market

Fully three-quarters of Automatic Teller Machines (ATMs) installed in Poland this year were made by Germany's Wincor Nixdorf, the company announced at a press conference yesterday. Its main competitor NCR, had 23 percent of the market. Wincor Nixdorf Poland is servicing about 1600 ATM machines outsourced by local banks.

Siemens subsidiary launched its Polish operations in 1991. Since then, Wincor Nixdort Poland grew its sales to over 160 million zloty ($40 million)

Pensions

WSE backs plan to let future pensioners invest on futures market

Owners of IKE individual retirement accounts should be able to invest their money on the futures market, believes Andrzej Sopoćko, vice-president of the Warsaw Stock Exchange. Under a new law, by mid-2004 Poles will be able to save approximately 3100 zloty per year in special, tax-exempt retirement accounts that will complement existing government and private pension plans.

WSE officials estimate just 100.000 out of about four million eligible investors will open individual retirement accounts once the new pension plans are available next year.