Kruger & Matz: a 50% increase in sales revenue

Kruger & Matz is currently the most important brand in Lechpol Electronics’ portfolio (Polish electronics distributor), accounting for 31% of its revenue. In May 2016 the company’s founder, Zbigniew Leszek, handed over the company to his sons. The company relies on investment and continuous stable development of business that can be seen in the 2016 sales revenues which totaled PLN 145 million (€33m). This means a 10% increase in sales revenue compared to the previous financial year. In 2016, the Kruger & Matz brand generated sales revenues amounting to nearly PLN 45 million (€1m), which means a 50% increase compared to the previous year. The margin on sales also significantly improved and amounted to PLN 9.7 million, or €2,2m, (a growth by 120% y-o-y).

In 2015, 40% of sales revenues in Kruger & Matz was generated by smartphone category of products. Despite maintaining a strong position in this market segment, in 2016 the share of this category in total revenues decreased to 27% due to an introduction of new products and the expansion of the offer. However, the main growth drivers in 2016 were the electronics-related segments. Currently, TV sets hold the second position in terms of sales revenue, while an increase in the sales of these products was 350% y-o-y. Significant increases were also recorded in the headphones (96% y-o-y), and home audio categories (60% y-o-y). At the end of 2016, Kruger & Matz also introduced two new categories, laptops and Bluetooth speakers, which also contributed to increased sales.

129910.png?223Kruger & Matz’s development of the product offering goes hand in hand with a plan of development on foreign markets. In 2016, Lechpol Electronics started a cooperation with Amazon, invested in the warehouse and office space in Romania, and is planning the development of sales network in the country. Romania is now the most important export market of the company. Lechpol Electronic SRL in 2016 generated a 15% increase in sales revenue to almost PLN 25 million. In 2017, the company also wants to enter the UK market. Currently, Kruger & Matz products are available, among others, in Romania, Germany, the Netherlands, Belgium, Czech Republic, Slovakia, Ukraine, Hungary and Bulgaria.