LPP (LPP) investor relations material

Executive summary

• Achieved record growth in 2025 with 1,029 new stores opened, including 913 Sinsay stores, and expansion into six new markets, reaching nearly 60 million new consumers.

• Record profits in 2025: revenue of PLN 23.1bn (+19% YoY), EBITDA of PLN 5.4bn (+31% YoY), EBIT of PLN 3.3bn (+37% YoY), and net profit of PLN 2.4bn (+36% YoY).

• E-commerce revenue grew by nearly 20%, with online sales reaching PLN 6.4bn (28% of total sales), and the Sinsay app surpassing major competitors in downloads and engagement.

• Significant investments of PLN 3.2bn–6bn, including over PLN 1.3bn in logistics, automation, and robotics, driving operational efficiency.

• Maintained strong financial stability, with net debt to EBITDA at 1.1% and successful oversubscribed financing of PLN 13.5bn.

Financial highlights

• Revenue grew by 19% year-over-year in constant currency, reaching PLN 23.1bn.

• EBITDA, EBIT, and net profit increased by approximately 31%-37% year-over-year.

• Gross margin improved by 2.2 percentage points year-over-year to 55.6%, with strong margin management in Q4.

• Proposed dividend per share for 2026 is PLN 900, up 36% year-over-year.

• CapEx reached a record PLN 3.2bn in 2025, with future CapEx expected to be lower as focus shifts to robotization.

Outlook and guidance

• Guidance for 2026 remains unchanged, with gross margin expected at 54%-55.5%, factoring in currency and geopolitical risks.

• EBITDA and net profit margins are projected to rise by 1 percentage point.

• Targeting EBIT of PLN 8bn by 2027, requiring 22% annual growth in 2026 and 2027.

• Store openings in 2026 will be more selective, focusing on profitability rather than volume, with around 120 new stores in 1Q26 and 350 in 1H26.

• 2026 targets: sales of PLN 28–29bn, EBITDA margin 23–24%, net margin 9–10%, and capex ca. PLN 3.1bn.