Pepco Group is set to achieve unprecedented financial performance despite certain challenges.
- The company’s full-year revenue is projected to surpass €6bn (£5bn), marking a 10% increase compared to the previous year.
- Underlying EBITDA for the near-complete fiscal period is expected to reach at least €900m (£750m), a notable 20% rise.
- In a strategic expansion, 390 new stores are anticipated by year-end, with a significant portion opening in the fourth quarter.
- Supply chain disruptions have impacted like-for-like sales, yet strategic measures are being implemented to drive improvement.
Pepco Group, the owner of Poundland, Dealz, and Pepco, anticipates a record-breaking financial year with revenues expected to exceed €6bn (£5bn), a robust 10% year-on-year growth. This announcement comes despite a 3.1% decline in like-for-like revenues, attributed to ongoing supply chain issues, emphasised by Pepco Group’s executive chair, Andy Bond.
Bond notes that while like-for-like sales face hurdles, the overall financial outlook remains optimistic due to strategic initiatives in place. The company’s pre-close trading update reveals an underlying EBITDA projection of “at least” €900m (£750m), which marks a significant 20% increase from the previous year.
Strategic expansion has been a focal point for Pepco Group, which is on course to inaugurate 390 new outlets by the end of the year. Notably, 64 of these stores were launched during the fourth quarter, showcasing the company’s resilience and commitment to growth despite market uncertainties.
Andy Bond, transitioning to the role of non-executive chair as Stephan Borchert takes over as CEO, highlighted the need for ongoing improvements in sales processes. He stated, “While there is much more to do, particularly around like-for-like sales progress, we remain committed to expanding our price leadership position, enhancing the core customer proposition and improving our supply chain capabilities.”
The company’s focus on disciplined capital expenditure to foster free cash generation underpins its strategic momentum heading into the next fiscal year. This approach aims to solidify its market position and bolster financial performance.
In summary, Pepco Group is poised for a record year in revenue amidst challenges, driven by strategic expansion and improved operational efficiencies.
