The Polish retailer Pepco Group NV has submitted its preliminary annual report for the 2025 financial year. The continued business areas-without the now sold British budget retailer Poundland-move as part of the forecast. Sales are expected to reach more than 4.5 billion euros. The driver is the space -adjusted growth (LFL), which increased by 2.7 percent in the 51 weeks until September 21.
The adjusted result before interest, taxes and depreciation (EBITDA) is expected to grow at the upper end of the high single -digit percentage range. The net profit also shows significant growth: after nine months it was already 196 million euros and thus almost at the previous year’s level (199 million euros in 2024).
Focus on core brand Pepco
“We have reorganized and simplified our business. Our focus is on the core brand Pepco in Central, East and Western Europe,” explained CEO Stephan Borchert. The aim is to increase customer satisfaction through digital offers and expand market shares.
The company speaks of a “year of transformation”. Milestones were the sale of Poundland to Gordon Brothers in June 2025 and the exit from the FMCG segment. FMCG (Fast Moving Consumer Goods) refers to fast -moving consumer goods such as food, drinks or drugstore items. Instead, Pepco relies more on margin -strong clothing and household goods. Without FMCG, the area -adjusted turnover grew by 6.1 percent in the second half of the year.
In the fourth quarter, Pepco reached the strongest quarterly growth in two and a half years with an increase of 3.9 percent. The business in Poland and Western Europe developed particularly robustly, where LFL growth was 6.7 percent over the year. In addition, the group wants to fulfill its goal of Netto 248 new branches.
The only burden came from the Dealz brand. There, the area -adjusted turnover decreased by 4.4 percent in the fourth quarter. The reasons were aggressive price campaigns in the health and beauty segment as well as cool weather that dampened the drinks sales.
Financial discipline and buyback program
The group is also solid financially. In October, a second tranche of the share buyback program starts over 50 million euros after a first tranche was completed in August. “The current share price does not reflect the potential of the company,” says management.
In addition, Pepco announced the termination of primarily secured bonds worth 175 million euros in order to optimize the terms of its liabilities. The liquidity remains comfortable. The company has a total of more than 700 million euros.
This article was used with digital tools translated.
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