Eurocash (EUR) Q1 2026 earnings summary

Executive summary

• Market conditions in Q1 2026 were challenging, with severe winter weather, deflation, and disinflation impacting consumption and slowing FMCG market growth to 3.0% year-over-year.

• Franchise banners delivered positive like-for-like sales and outperformed competitors, showing resilience despite deflation in fresh categories.

• Strategic focus on franchise clients, cost reduction, and restructuring led to improved operating results and narrowed EBIT loss, even as overall sales declined.

• Significant cost savings were achieved through layoffs, store closures, and logistics optimization, with 24% of the PLN 400 million target already launched and an annualized EBIT impact of PLN 96 million.

• Adjusted net loss was PLN 74 million, impacted by PLN 15 million in tax one-offs.

Financial highlights

• Revenue declined by 3.2% year-over-year to PLN 6,657 million.

• Pre-IFRS EBITDA improved to PLN 10 million from PLN 1 million a year ago; post-IFRS EBITDA stable at PLN 121.4 million.

• EBIT loss narrowed to PLN 11.7 million from PLN 28 million year-over-year.

• Gross profit on sales decreased by 8% to PLN 864 million; gross margin declined by 0.7pp to 13.0%.

• Net profit remained negative at PLN 89.4 million, with net profit margin at -1.3%.

Outlook and guidance

• Cost savings initiatives are expected to deliver PLN 400 million by 2027, with 24% already achieved and an annualized EBIT impact of PLN 96 million.

• Management anticipates further profitability improvement as cost reductions materialize and expansion accelerates, focusing on franchise growth and marketing investment.