3i Group (III) CMD 2026 summary

2025 performance highlights

• Net sales rose 16% to €16 billion in 2025, with like-for-like sales growth of 4.9%, outperforming most European retailers and driven by ongoing store expansion and customer growth.

• Operating EBITDA increased by 14% to €2,367 million, with a margin of 14.8%, and a record 384 new stores opened, bringing the total to 3,302 at year-end.

• Store expansion was strong across all markets, with notable entries into Switzerland and Romania, and above-average like-for-like growth in mature markets like the Netherlands.

• Customer base grew to 21.6 million weekly, and the company received multiple awards for brand strength and product quality.

• Store contribution margins averaged 24.7% across countries, with all stores profitable and average payback periods under one year.

Strategic direction and expansion plans

• Strategy focuses on low prices, quality, international growth, operational efficiency, sustainability, and people.

• At least 400 new stores are planned for 2026, with main growth in Italy, Germany, Poland, Spain, and France, and new entries into Croatia and Slovenia.

• U.S. market entry planned, starting with 20 stores in North Carolina, South Carolina, and Georgia by end of 2027/early 2028, aiming for 100 stores by 2030 and €350–400 million investment over 2026–2030.

• Store network potential in Europe now estimated at 4,000–4,650, with ongoing disciplined expansion and strong performance in both high and low-income markets.

• Continued investment in supply chain, technology, new gas-free distribution centers, and expanded supplier engagement on emissions.

Financial guidance and operational model

• EBITDA margin for 2025 was 14.8%, 30bps lower than 2024, mainly due to lower like-for-like growth, higher supply chain costs, and increased margin adjustments.

• Store payback remains under one year, with all stores profitable and average investment per store at €600,000.

• Direct sourcing reached 17.6% of cost of sales, targeting 20%, supporting margin and quality but with higher handling costs.

• Cash conversion remains strong at 83%, with operating cash flow at 12.3% of net sales and operating cash flow of €1,974 million in 2025.

• 2026 guidance: at least 400 new stores, like-for-like sales growth of 4–5%, and stable EBITDA margin at 14.8%, with ongoing monitoring of geopolitical risks and cost inflation.