Pepco Group to accelerate new store openings following profit rise

GENERAL MERCHANDISE

Pepco Group, the owner of Poundland and Dealz, has posted an increase in annual sales and profits after trade was boosted by the opening of 516 new stores.

The year to 30 September saw the group’s underlying pre-tax profit rise by 23.2% year-on-year to €300 million as EBITDA increased by 13% to €731 million.

Meanwhile revenue climbed by 17.4% to €4.82 billion.

The group launched a record 516 net new stores in the period which included 70 Poundland shops. It will be accelerating its store opening programme in the current financial year with a target 550 openings as it aims to end period with at least 4,500 stores. Pepco said the new shops will mainly be situated in Central and Eastern Europe, although the Pepco brand will be entering Portugal in the spring of next year.

Trevor Masters, chief executive of Pepco Group, said: “Despite industry-wide short-term challenges, Pepco Group delivered another year of good progress and resilient trading performance, driven by our successful and proven strategy.

“We accelerated our profitable store expansion programme – our biggest source of value creation – and store refit strategy, helping to enhance our LFL performance.

“We also lowered our cost structure and improved back-office processes to be significantly cheaper and more efficient, helping us grow sales and deliver on EBITDA and cash generation.”

The group said  it is on track to meet guidance for FY23 of EBITDA growth in the mid-teens, assuming constant FX rates and the absence of any further significant deterioration in the macro environment.

Masters added “We have made significant progress, and I look forward to pushing forward with our ambitious plans and capitalising on the attractive market opportunities ahead.”