Eurocash (EUR) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined 7.6% year-over-year to PLN 6,873.8m, mainly due to calendar effects, weak wholesale market, and excise tax timing on tobacco and alcohol.

• Gross margin improved to 13.7% from 13.1% year-over-year, but EBITDA fell 11.3% to PLN 121.1m.

• Net loss was PLN 87.1m, nearly flat year-over-year, with continued cost-efficiency efforts and one-off costs of PLN 7.9m for store closures.

• Inmedio Sp. z o.o. was deconsolidated and classified as held for sale, with results presented as discontinued operations.

• Acquisition of 30% of Firma Rogala Sp. z o.o. increased ownership to 80%.

Financial highlights

• Sales revenue: PLN 6,873.8m in Q1 2025, down from PLN 7,436.5m in Q1 2024 (-7.6% YoY).

• Gross profit: PLN 939.8m, down 3.2% YoY; gross margin improved to 13.7%.

• EBITDA: PLN 121.1m (1.8% margin), down from PLN 136.5m (1.8% margin) in Q1 2024.

• Net loss from continuing operations was PLN 82.1m; total net loss at PLN 87.1m, nearly flat year-over-year.

• Cash flow from operating activities was PLN 54.8m, up from PLN 52.4m year-over-year.

Outlook and guidance

• Management expects profitability to improve in the second quarter and for the full first half, driven by cost savings, margin discipline, and anticipated sales rebound.

• Store closures and cost measures are expected to yield annualized savings of PLN 24.6m–25m, with full impact from 2026.

• No further large-scale store closures are planned for the remainder of the year.

• Management does not plan to publish forecasts for 2025 and notes that achieving the 2025 EBITDA and Frisco sales targets is unlikely.

• Focus remains on cost efficiency, wholesale integration, and long-term investments in growth platforms.