Eurocash (EUR) investor relations material

Executive summary

• Q1 2026 saw a challenging FMCG market with severe winter weather, deflation, and disinflation impacting sales, especially in smaller stores and fresh categories.

• Franchise banners maintained positive like-for-like sales, outperforming competitors and confirming the strategic focus on this segment.

• Cost-saving initiatives, including layoffs, store closures, and logistics optimization, began to show results, improving operating profits and narrowing EBIT loss.

• The group’s EBITDA turned positive pre-IFRS, and EBIT loss narrowed significantly year-over-year, with 24% of the PLN 400m cost savings target already launched.

• Strategic transformation continues, with further cost savings and franchise expansion planned for the coming quarters.

Financial highlights

• Revenue declined by 3.2% year-over-year to PLN 6,657 million; gross margin fell by 69–70 basis points to 13.0%.

• Pre-IFRS EBITDA improved from PLN 1 million to PLN 10 million; post-IFRS EBITDA stable at PLN 121 million.

• EBIT loss reduced from PLN 28 million to PLN 12 million.

• Adjusted net loss (excluding one-offs) was PLN -74 million, impacted by PLN 15 million in tax one-offs.

• Net profit remained negative at PLN -89.4 million, with net profit margin at -1.3%.

Outlook and guidance

• Full effect of cost-saving measures expected in 2027, with PLN 400 million in targeted annual savings and 24% of the target already achieved.

• Management plans to shift focus from cost discipline to growth, emphasizing franchise expansion, marketing, and own brands.

• Expectation of improved results in subsequent quarters as strategic initiatives take hold.

• Strategy focuses on strengthening the franchise core and further expansion into independent clients.