Pepco Group recorded EUR 1,020 million in revenues in Q2 of the fiscal year 2021/2022 (i.e. January-March this year), which means an increase of 25.1% y / y (assuming fixed exchange rate), the company said. The group’s sales under comparable conditions (LFL) increased by 12.1% y / y in Q2.
The group’s revenues for the first half of the year increased by 17.5% y / y to EUR 2,371 million, led by PEPCO, which recorded an increase of 28.9%.
The company emphasized the “strong half-year growth of the group’s sales under comparable conditions (LFL) by 5.3% due to faster LFL growth in Q2 by + 12.1%:
* PEPCO: + 18.5% LFL growth in Q2 and + 7.2% LFL in the first half of the year.
* Poundland Group: + 5.9% LFL growth in the second quarter and + 3.3% LFL in the first half of the year, “the press release said.
H1 EBITDA is expected to be in the range of EUR 342 million to EUR 350 million. With a performance in this range, the group is well on track to meet its forecasts for the full year, should the macroeconomic conditions not deteriorate further.
The number of stores opened is ahead of forecasts, the company announced. During the first half of the year, 235 new net stores were opened, excluding the closures of 43 Fultons stores following the acquisition of this chain:
* PEPCO: record number of new store openings – 202, including 84 stores in Western European markets in Austria, Italy and Spain, where initial results are very good.
* Poundland Group: 33 new stores net, an increase of 6.7% y / y
Since the beginning of the year, 586 stores have been modernized (including 534 PEPCO, 52 Poundland), thanks to which the outlets have gained a new layout and surroundings, which contributed to an increase in LFL sales and improved customer perception (1,900 modernizations have been carried out since 2019).
March 31 this year. Andy Bond stepped down as group CEO and his duties were taken over temporarily by Trevor Masters.
“We are very pleased with the results achieved, given the global disruptions our industry is facing. We continue to focus on our strategic priorities, in particular the development of new stores and the continuation of the modernization program, which are very positively received by customers and delivering good results,” said Masters.
While the impact of COVID-19 gradually declined in Q2, the invasion of Ukraine – a country bordering three of our largest territories – caused further instability and unpredictability, he stressed.
“We will continue to implement our dynamic growth program while lowering the costs of doing business, which will mostly allow us to neutralize the negative impact of inflation. We keep prices in our stores low, because our customers pay special attention to prices. we operate, most likely to remain volatile due to the situation in Ukraine and persistent global inflationary pressures, but we have a clear and effective strategy that will enable us to take advantage of significant opportunities for long-term growth. If the macroeconomic situation does not deteriorate further significantly, we are confident that we will achieve results in line with our profit estimates,” concluded Masters.
Pepco Group operates in two market segments: through PEPCO (a chain of multi-branch discount stores) and Poundland / Dealz (a chain of stores operating in the model of impulse purchases of groceries, general purpose, seasonal and basic necessities sold in the uniform price formula). The company made its debut on the WSE in May 2021.
Source: Pepco Group and ISBnews
