Eurocash (EUR) Q4 2025 earnings summary

Executive summary

• 2025 was marked by a major transformation strategy, shifting from owned stores to a franchise model, reducing logistical centers, and cutting labor costs by nearly 30%.

• The company booked PLN 290 million in restructuring reserves and PLN 34 million in one-off severance costs, impacting reported results, mainly in Q4.

• Sales declined by 4.6% year-over-year to PLN 30.024 billion, mainly due to strategic closures, market headwinds, and portfolio optimization.

• Despite lower sales, the EBITDA margin was maintained at 2.9% year-over-year, reflecting strong cost and margin discipline.

• The transformation is expected to yield PLN 400 million in annual cost savings, with most labor reductions already executed and the program on track.

Financial highlights

• Revenue fell 4.6% year-over-year, from PLN 31.4 billion to PLN 30.024 billion, mainly due to strategic closures and market contraction.

• Gross margin improved by 0.1 percentage points to 13.3%, though Q4 saw a contraction of 34 basis points.

• Adjusted EBITDA pre-IFRS declined 8% to PLN 389 million; reported post-IFRS EBITDA was PLN 541.9 million, while recurring EBITDA margin remained stable at 2.9%.

• Adjusted net profit was a loss of PLN 12 million, compared to a profit of PLN 3.8 million in 2024; reported net profit turned negative at PLN -311.7 million due to one-offs.

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

Outlook and guidance

• Full impact of cost savings and profitability improvements expected in 2026, with focus on franchise expansion, digital integration, and positive like-for-like growth.

• Frisco is expected to reach profitability or EBIT break-even in 2026, with continued strong growth.

• Duży Ben is being repositioned as a franchise model and is in optimization mode to drive future scalability and profitability.