Eurocash (EUR) Q2 2025 earnings summary

Executive summary

• Sales declined 1.2% year-over-year in Q2 2025, outperforming a 3.5% drop in the wholesale relevant market, with market share maintained but overall results unsatisfactory.

• Adjusted EBITDA margin improved to 3.0% in Q2 2025 from 2.7% a year earlier, driven by cost discipline and PLN 52m in savings.

• Growth platforms, notably Frisco and Duży Ben, posted positive EBITDA for the first time, with Frisco sales up 25% year-over-year and expansion into Łódź.

• Franchise network expanded by 428 stores in the first half, with franchise stores showing positive like-for-like sales (+1.1%) against a declining market.

• Management remains focused on cost efficiency, profitability, and franchise integration as strategic priorities.

Financial highlights

• Q2 2025 sales down 1.2% year-over-year to PLN 7,886m; adjusted EBITDA up 9.1% to PLN 239m; EBIT up 24% to PLN 82m.

• H1 2025 sales down 4.3% year-over-year to PLN 14,760.3m; gross margin up to 13.23%; EBITDA at PLN 350.6m (margin 2.38%).

• Net loss for H1 2025 was PLN 91.5m, including a loss of PLN 11.4m from discontinued operations.

• Free cash flow for H1 2025 at PLN 250 million, stable year-over-year after adjusting for a PLN 52 million investment.

• Net debt/EBITDA at 0.89 pre-IFRS16 and 2.56 post-IFRS16; net debt at PLN 368m pre-IFRS16 and PLN 2,376m post-IFRS16.

Outlook and guidance

• Management targets improved EBITDA and net income for full-year 2025 versus 2024, but does not plan to publish forecasts due to market uncertainty.

• Frisco expected to be profitable on EBIT and net profit level for full-year 2026.

• No specific gross margin guidance; profitability improvement depends on sales recovery.

• Continued focus on cost discipline, working capital optimization, and franchise network expansion.

• The Group aims to maintain a stable financing structure and return to regular dividend payments, subject to financing terms.