The trading group Pepco Group NV published selected preliminary results for the first six months of the 2025/26 financial year on Thursday.
According to the current interim report, the parent company of the discounters Pepco and Dealz was able to achieve a currency-adjusted sales increase of 3.7 percent in the 25 weeks before March 22nd compared to the same period last year. On a like-for-like basis and adjusted for the share of the fast-moving consumer goods (FMCG) category, from which the group plans to withdraw, revenues rose by 3.1 percent.
Despite closures in Germany: Pepco continues to expand
CEO Stephan Borchert acknowledged the latest development. “Pepco has achieved its fifth consecutive quarter of like-for-like sales growth. This is a testament to the strategic progress we are making,” he said in a statement.
The Pepco brand has recorded like-for-like sales growth of 4.2 percent excluding FMCG year to date. Recently it was able to accelerate its upward trend. Growth of 9.6 percent was achieved in the last four weeks of the reporting period. According to the retailer, this was due not least to the positive demand for the spring/summer and Easter collections.
The group set its expansion strategy and expanded its store network by 31 locations in the first half of the financial year, although numerous stores were closed as part of the German subsidiary’s insolvency proceedings. At the end of February, Pepco operated 4,046 stores. Market entry in North Macedonia is planned for June. The company would then be present in 19 countries. For the entire 2025/26 financial year, the company is aiming for a total of around 250 net new openings.
While the Pepco brand showed strength, the Dealz segment suffered losses. On a comparable basis, the retail chain’s revenues fell by 9.8 percent in the first half of the year. Management emphasized that the Dealz sale process is progressing and should be completed as planned in the current financial year.
Management confirms its annual forecasts
Looking ahead, Pepco Group expects “strong profit development” for the first half of the year. The annual forecasts remained unchanged. Sales growth of between six and eight percent is still expected. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to increase by at least nine percent year-on-year. Adjusted net profit is even expected to grow by over 25 percent, which is due, among other things, to lower interest charges following the recent debt refinancing.
The group also confirmed that it will complete its share buyback program with a total volume of 200 million euros this financial year. A fourth tranche worth 52.9 million euros began on March 10th.
The group plans to publish its full half-year results on May 21st.
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