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LPP S.A. Press room LPP has provided the Polish budget with a billion zloty in taxes

LPP has provided the Polish budget with a billion zloty in taxes

16.12.2019

Already in 39 countries consumers are familiar with brands such as Reserved, House, Cropp, Mohito or Sinsay. Their owner is constantly increasing the international recognition of these brands, at the same time focusing on strengthening the roots and supporting the domestic economy – it is indeed in Poland where LPP pays taxes. Only in 2018, almost one billion zlotys was paid by this clothing manufacturer to the state budget.

According to the data of the Ministry of Finance concerning 2018, LPP found itself among top 30 CIT payers in Poland and ranked 3rd in the industry in this regard. The company was on the podium thanks to the fact that it paid over 144 million zlotys in income tax. The total amount that the company transferred to the state budget in 2018 as taxes and other levies amounted to almost one billion zlotys.

In addition to contributing to the domestic budget by paying taxes here, LPP also supports the Polish economy by, among other things, creating jobs. The company already employs nearly 14 thousand people in Poland (and 25 thousand in total worldwide), and by cooperating with Polish partners it contributes to driving their businesses and increasing employment in these enterprises. – We value Polish companies, and by deciding to cooperate with them, we, in turn, support their development. We are proponents of a business idea where the designs that are created in Poland reach foreign markets too – also because we create all the concepts ourselves in Poland. Our clothes and accessories designed in Gdańsk or Kraków have already been reaching 39 markets – in 25 countries they are available in brick and mortar stores, and in 30 online – says Przemysław Lutkiewicz, Vice President of LPP.

The business model which entails selling products created on the basis of Polish know-how also in other countries, helps our domestic economy to grow due to export and paying taxes in Poland at the same time. LPP has been increasing its sales volumes abroad, thanks to which the revenues from foreign markets generated over three billion zlotys for the Company last year. In the second quarter of 2019, however, for the first time in the history of the company, foreign sales exceeded those generated in Poland.

– As a Polish family business, we think about our economy in a forward-looking way, we still want to contribute to the domestic budget, that is why it is here that we pay taxes, and invest a large part of our profits in Poland says Przemysław Lutkiewicz. – We know that our present actions have an impact on tomorrow. Therefore, all decisions related to running the company are made with the concept of sustainable development and broadly understood responsibility in mind – both as regards our immediate context, i.e. employees of LPP and the local community, as well as our country and the environment as whole – 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.