LPP (LPP) investor relations material

Executive summary

• Achieved strong double-digit like-for-like sales growth, with Sinsay and Reserved leading, and robust performance in both traditional and online channels.

• E-commerce sales grew 16–19.7% YoY in Q2/H1, reaching up to 26.9% of total sales, despite lower online traffic and optimized marketing spend.

• Continued profit growth in 2Q25, with EBITDA, EBIT, and net profit all increasing year-over-year.

• Network expansion continued, with 296 new stores opened, especially in Sinsay, and entry into new markets such as Uzbekistan and Albania.

• Operational efficiency improved through cost control, logistics investments, and performance marketing optimization.

Financial highlights

• 2Q25 revenue reached PLN 5.6bn (+17% YoY); 1H 2025 revenue was PLN 10.5bn (+12.9% YoY); EBITDA for H1 exceeded PLN 2.1bn (+17.6% YoY); EBIT for Q2 was PLN 689m; net profit for H1 was PLN 799m (+11% YoY).

• Gross margin stabilized at 54.0%, slightly down YoY due to Sinsay's higher share and increased promotions.

• Online sales accounted for up to 26.9% of total sales in H1 2025.

• Inventory turnover increased to 176 days, with over 75% of inventory dedicated to Autumn/Winter 2025.

• Net debt/EBITDA ratio at 1.3, with net debt at PLN 5.7bn.

Outlook and guidance

• Full-year 2025 revenue targeted at PLN 23–24bn, with double-digit growth in both traditional and online channels.

• Gross margin expected at 53–54%, SG&A/sales at 41–42%, EBITDA margin 19–20%, net margin 7–8%.

• Planned opening of 200–250 new stores in Q3 and 400–450 in Q4, mainly Sinsay, targeting around 1,100 stores.

• Capex for 2025 planned at PLN 3.1bn, focused on store and logistics expansion.

• Inventory control targeted for 2026, aiming for optimal levels within 2–3 quarters.