Pepco Group, the Poland-listed owner of Dealz and British discount retailer Poundland, on Thursday reported a 16.8% increase in core earnings in the first half of its financial year, as revenue growth from new store openings offset the impact of pandemic restrictions.
The group, which also owns the PEPCO and Dealz brands in Europe, trades from more than 3,200 stores across 16 countries and is led by chief executive Andy Bond, a former boss of British supermarket group Asda.
It made its stock market debut in Warsaw last month following the biggest initial public offering (IPO) in Poland this year and is trading above its IPO price.
Half-Year Performance
Pepco made underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of €324 million in its first half to 31 March.
Total revenue on a constant currency basis rose 9%, driven by 225 net store openings across all its retail brands and territories.
However, like-for-like sales fell 2.1%, reflecting 15% of the trading weeks being lost to pandemic-related store closures.
All of the group's stores are trading, although some restrictions remain, placing limitations on customer footfall.
It said underlying trading was in line with full-year guidance provided with the IPO.
Outlook
Bond said, "We anticipate that the environment in which we operate will remain changeable and challenging in the short term but over time as consumer behaviour returns to more normal patterns, as any COVID related restrictions that impact our customers confidence to shop are further relaxed.
"However, as these results show, we have a clear and winning customer offer, a long-term growth strategy delivering stores in existing and exciting new markets, as well as a number of key initiatives to drive our sales and margin. As such, we remain confident about our prospects for continued profitable growth in the balance of the financial year and beyond.”
The group's shares were priced at 40 zlotys at the IPO giving it a valuation of 23 billion zlotys ($6.3 billion). The stock was trading at over 46 zlotys on Thursday.
