LPP sees growing problems with supplies from China and is recording rising production prices, which will increase the pressure on trade margins in the coming periods, according to vice-president Przemysław Lutkiewicz. The company is not planning any more openings in new markets this year.
“The third quarter started very well. August was marked by very strong dynamics related to, among others, with the so-called ‘return to school’. On the other hand, in September, the sales dynamics was lower than in August, and it is similar in October. This strong dynamics recorded in the second quarter may not be so visible in the passing quarter, ”Lutkiewicz said during the videoconference.
Lutkiewicz also pointed out that problems with supplies and production would have a negative impact on the following periods.
“We are already seeing delays in shipping. We note 3-week delays in deliveries of goods from Asia. The railway is also not doing well, because the interest in this alternative delivery has grown dynamically. We are also seeing large increases in production prices, in the order of 10-20%. This producer inflation will bother us. To this we must add the lack of construction materials or, for example, computer equipment – all this will make the next quarters more difficult, ”added the vice-president.