Zabka Group (ZAB) investor relations material

Business model and market positioning

• Operates a tech-powered convenience ecosystem with over 13,000 stores in Poland and Romania, serving 18 million consumers within 500 meters of a store and processing 4.3 million daily transactions.

• Focuses on three consumer megatrends: ultimate convenience, digital engagement, and responsible choices, with high digital adoption and loyalty scheme participation.

• Fully franchised model with ~11,000 franchisees, offering attractive economics, low churn, and robust support, enabling rapid and scalable expansion.

• AI-driven operations optimize store expansion, assortment, pricing, and logistics, supporting hyper-localization and efficiency.

• Leading brand awareness (90%) and a digital gateway via the Żappka app, with 12.2 million active users.

Financial performance and growth

• Achieved PLN 31.1bn in sales to end customers in FY 2025 (+14.1% YoY), with adjusted EBITDA of PLN 4.1bn and a 13.1% margin, exceeding guidance.

• Q2 2026 sales reached PLN 9.2bn (+13.2% YoY), adjusted EBITDA at PLN 1,228m (+16.2% YoY), and margin improved to 13.3%.

• Adjusted net profit for Q2 2026 was PLN 366m (+65.8% YoY), with net debt/adjusted EBITDA reduced to 0.7x, reflecting strong cash generation and disciplined capital allocation.

• FY 2025 adjusted net profit surpassed PLN 1bn for the first time, up 40.6% YoY, driven by operational efficiency and improved financing.

• Free cash flow in FY 2025 was PLN 1.7bn (+13.7% YoY), with capex focused on growth and efficiency, and leverage steadily declining.

Strategic initiatives and expansion

• Opened 1,394 new stores in 2025 (1,276 in Poland, 118 in Romania), with a target of 1,300+ new stores annually in the medium term.

• Romanian operations ramped up to 240 stores by June 2026, with strong brand awareness and rapid catch-up to Polish performance.

• Digital Customer Offering (DCO) businesses, including Maczfit, Dietly, Jush!, and Delio, delivered double-digit growth and expanded service integration.

• Innovation in foodservice (Żabka Café 2.0, street food, self-checkout) and digital engagement (Żappka app, Triki gaming, Żabka Ads) drive traffic and basket size.

• ESG leadership with top AAA MSCI ESG rating, 36.1% reduction in virgin plastic, and 34.9% cut in Scope 1 and 2 emissions by 2025.