Pepco Group reports 8.7 % revenue growth without Poundland

The Polish Pepco Group saw its turnover increase by 8.7 % to 4.52 billion euros in the past financial year (ending 30 September). Comparable sales rose by 2.6 %, and the group added 247 stores. The group is continuing its strategy of operating towards a single Pepco format.

Strategic simplification

In June, the chain sold its British subsidiary Poundland to Gordon Brothers for a symbolic pound. To the company says this significantly simplified the group structure, which is in line with its “ultimate goal” of operating under a single Pepco format and focusing on the higher margins within fashion and general goods.

In the past financial year, the turnover of the eponymous chain rose by 8.6 % to 4.18 billion euros. Dealz Poland even increased its turnover by 10.4 % to 339 million uros. 247 store openings (net) further boosted sales. The group’s EBITDA increased by 10.3 % to 865 million euros, while underlying net profit grew by 19.7 % to 219 million.

Results confirm change in strategy

For the 2026 financial year, the group expects sales growth of 6 to 8 %. The exit from FMCG is estimated to reduce the top line by approximately two percentage points in that year.

CEO Stephan Borchert said: “2025 was a real turning point for the group. Having outlined our new strategic framework in March, the group has executed at exceptional pace, delivering significant progress in a short timeframe.”

“The decision to refocus on Pepco and exclusively on our core categories of clothing and general merchandise has been validated by these strong results, in particular our gross margin and free cash performance which were both ahead of expectations.”