Poland · Delayed Price · Currency is PLN Pepco Group Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw 8.5% revenue growth and 5.4% like-for-like gains, led by Western Europe and CEE. The group completed its transformation into a pure-play Pepco business, upgraded FY26 EBITDA and PAT guidance, and announced a €400 million buyback. Gross margin rose 360 bps year-over-year.
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Strong H1 FY2026 results with revenue up 5%, EBITDA up 17.5%, and profit after tax up 52%. Western Europe and South CEE led growth, with accelerated expansion plans and a €400m buyback announced. Gross margin and cash flow guidance were upgraded.
Fiscal Year 2025
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FY25 saw robust revenue and profit growth, driven by strategic exits from FMCG, operational improvements, and expansion in CEE and Western Europe. Upgraded guidance for FY26 and midterm reflects confidence in continued margin and earnings growth, supported by digital transformation and disciplined capital allocation.
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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 and a 180 bps gross margin improvement. The group is focused on high single-digit revenue and EBITDA growth for FY25, supported by robust cash generation and a €50 million share buyback.
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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, offsetting Poundland's underperformance and impairment. Strong cash flow and disciplined capital allocation enabled the first dividend, with a cautiously optimistic outlook for FY 2025 and a focus on core markets and operational improvements.
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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.