The trading group Pepco Group NV made progress with its reforms in the past 2024/25 financial year. The preliminary results presented by the company on Wednesday marked a “real turning point,” it said in a statement. The return to the core business with clothing and the non-food range as well as the successful exit from the FMCG sector would have had a positive impact.
In the financial year ended at the end of September, the group reported “significant growth across all key financial indicators of its continuing operations”. The corresponding sales rose compared to the previous year by 8.7 percent to 4.5 million euros. This was not least due to the fact that like-for-like sales developed positively again (+2.6 percent).
The earnings before interest, taxes, depreciation and amortization (EBITDA) of the continuing operations, adjusted for special effects, grew by 10.3 percent to 865 million euros, and the adjusted net profit jumped by 19.7 percent to 219 million euros. The Group’s gross margin improved by 100 basis points to 48 percent thanks to the increase in operational efficiency and the effects of the FMCG exit.
“2025 was a real turning point for the group,” said CEO Stephan Borchert in a statement. “The decision to refocus on Pepco and exclusively on our core categories was validated by these strong results.”
A central pillar of the annual success was the streamlining of the group portfolio. The sale of Poundland was completed on June 12. The group also successfully exited the FMCG category within the Pepco brand. The group also announced its plan to start the divestment process for Dealz next year. Dealz now operates as a fully independent entity.
Expansion remained a priority last year. The group expanded its branch network by 247 locations, bringing it to a total of 4,359 branches at the end of September.
Management appeared more confident about the group’s development. This led to an increase in the medium-term forecast. For the 2026/27 financial year, Pepco expects adjusted EBITDA to grow by at least nine percent. Adjusted net profit is expected to increase by more than 25 percent. Sales growth is forecast at six to eight percent. Looking ahead to 2030, the group has set a new target for adjusted net profit growth: it should grow by at least 15 percent per year on average. The gross margin target was raised to 48.5 percent.
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