Poland · Delayed Price · Currency is PLN Pepco Group Earnings Call Transcripts
Fiscal Year 2025
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Transformational year with 8.7% revenue growth, 20% net earnings increase, and improved margins driven by strategic exits and operational focus. FY26 guidance targets 6%-8% revenue growth, at least 25% net earnings growth, and continued digital and geographic expansion.
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2025 was a transformational year, with strong like-for-like growth in all regions, a successful exit from Poundland, and significant margin and cash flow improvements. Store expansion and digital initiatives are driving future growth, with full-year EBITDA expected at the top end of guidance.
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Q3 delivered record revenues of €1.1 billion, up 8% year-on-year, with strong like-for-like growth in both Pepco and Dealz. Gross margin improved by 180 basis points, and a €50 million share buyback was announced, reflecting robust cash generation and confidence in future prospects.
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H1 saw strong growth in Pepco and Dealz, offset by Poundland's weak performance and margin decline. Group net debt improved, guidance for Pepco and Dealz is maintained, while Poundland's outlook is downgraded. Poundland separation and a €200 million share buyback are progressing.
Fiscal Year 2024
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Record revenue and EBITDA growth were driven by Pepco's strong performance in CEE, while Poundland faced significant challenges, including a major impairment. The group improved margins, reduced debt, and announced its first dividend, with a focus on disciplined growth and cost control.
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Group revenue rose 8% year-over-year, but like-for-like sales were negative across all brands. Gross margin improved significantly, and full-year profit guidance of €900 million was reiterated, with momentum expected to improve into Q4 and the next financial year.