Eurocash (EUR) Q4 2025 earnings summary

Executive summary

• FY2025 saw a sharp contraction in the wholesale market due to category pressure, regulatory changes, and consumer downtrading, prompting accelerated restructuring and portfolio optimization.

• Strategic closures of unprofitable stores and distribution centers reduced sales but improved profitability quality and cost base.

• The PLN 400m savings program under the 2026-27 strategy is on track, with significant restructuring provisions booked in Q4.

• Early impact of the new strategy is visible, with improved working capital and cost discipline offsetting lower sales.

Financial highlights

• Group revenues declined by 4.6% year-over-year to PLN 30.0bn, mainly due to strategic closures and market contraction.

• Recurring EBITDA margin remained stable at 2.9% (PLN 867m vs. PLN 904m in 2024), while reported EBITDA IFRS16 dropped 40.1% due to restructuring provisions.

• Gross margin improved by 10 bps year-over-year to 13.3%, despite a 34 bps decline in Q4.

• Net profit turned negative at PLN -311.7m, impacted by one-offs and restructuring; adjusted net profit was PLN -12m.

• Working capital improved, with the cash conversion cycle shortened by 2 days year-over-year.

Outlook and guidance

• Frisco remains on track to reach EBIT break-even in 2026; Duży Ben is in optimization mode.

• The group targets further cost savings, franchise expansion, and digital integration, aiming for positive LFL growth in franchise formats and break-even for growth platforms in 2026.