Polish food retailer Eurocash might not be able to meet its financial targets for 2025, given the challenging market trends and its updated operational plans, it said.
Particularly at risk are its core profit (EBITDA) target of 1 billion zlotys ($243.1 million) and the revenue goal for its Frisco brand, also at 1 billion zlotys (€230 million), published in 2022 as part of its 2025 strategy, Eurocash said in a statement.
The management board will not publish separate annual forecasts for 2025, the retailer added.
Third-Quarter Highlights
The group highlighted that it had reached the strategic net debt to EBITDA ratio target of 0.85 by the third quarter of this year, while improved cost efficiency helped it offset the impact of Poland's minimum wage increase on profitability.
Eurocash's third-quarter EBITDA fell 20% on the year to 243.8 million zlotys (€56.4 million), while its revenue declined 1% to 8.49 billion zlotys (€2 billion), hit by negative macroeconomic factors and low retail sales in particular.
Quarterly net profit was 3 million zlotys, reversing a loss of 91 million zlotys (€21.05 million) in the same period last year.
Retail Purchasing Group
The compant has created a retail purchasing group - Równi w Biznesie - as it seeks to offer customers quality products and reasonable prices.
All companies operating retail chains associated with the Eurocash Group have signed a declaration on joining the purchasing group, the company noted.
"In total, it includes about 15,500 franchise and partner outlets, or as many as one-fourth of all grocery shops in Poland, excluding specialist shops and petrol stations."
