Modivo (MDV) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking annual sales, with 2024 revenue at PLN 12.0 billion and ambitions to reach PLN 12–20 billion in 2025, alongside a long-term target of PLN 25 billion revenue and 20% EBITDA margin.

• Annual EBITDA reached PLN 1,635 million in 2024, with net profit from continuing operations at PLN 1,023 million, and Q1 2025 EBITDA at PLN 376 million (16%).

• Aggressive expansion underway, targeting over 300,000–350,000 m² of new retail space and 370 new store openings in 2025, with strong results in Spain and Italy.

• Maintained strict cost discipline and operational efficiency, supporting profitability during rapid expansion.

• All business lines contributed to growth, with HalfPrice and eobuwie formats leading expansion and operational KPIs.

Financial highlights

• Like-for-like sales remain strong, outperforming the broader industry, with Q1 2025 Group revenue at PLN 2,350 million (+4% YoY).

• EBITDA margin reached 16% in Q1 2025, up 2.7–3pp YoY; EBIT margin at 9.1% (+2.5pp YoY).

• Cost ratio improved to 43.9–44%, with further reductions targeted.

• Inventory up 19% YoY to support expansion, with a reduction plan aiming for a 20–25% decrease by year-end.

• Financial expenses targeted to drop to one-third of COVID-period levels, with refinancing and debt optimization ongoing.

Outlook and guidance

• 2025 targets include PLN 12–20 billion revenue and 12–20% EBITDA margin, with over 300,000 m² of new retail space and 370 new stores planned.

• Expansion in Spain and Italy expected to drive significant growth, leveraging a combined market of over 100 million consumers.

• Inventory and cost management remain key priorities, with further automation and logistics improvements planned.

• No rights offering planned; refinancing and lower-cost debt are preferred.

• Expectation of further positive impact from growing share of licensed brands in the product mix.