Modivo (MDV) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 increased by 6% year-over-year, reaching PLN 296 million, despite challenging weather, geopolitical conditions, and higher operating costs.

• Group revenue rose 4% year-over-year to approximately PLN 2.44 billion, driven by expansion and product diversification.

• Gross margin reached a record 52.3%, the highest in recent years, supported by a favorable sales mix and increased share of licensed brands.

• Store network expanded by 406 stores to 1,488, with retail space up by 48,800 m² since January.

• Inventory per square meter declined, with a 2% overall reduction despite a 40% increase in store count.

Financial highlights

• Adjusted EBITDA margin remained stable year-over-year, with adjusted EBITDA up from PLN 278 million to PLN 296 million.

• FX impacts reversed year-over-year, with a swing of over PLN 70 million and adverse FX contributing to a net loss.

• Performance marketing costs reduced by PLN 50 million year-over-year, now 12% of sales.

• CapEx for 2025 was around PLN 885 million, with a target not to exceed PLN 700 million in 2026; Q1 2026 CapEx at PLN 245.3 million.

• Cash flow from operating activities was PLN 346.1 million, up from PLN 6.3 million a year earlier.

Outlook and guidance

• Expansion focus will shift to off-price and omnichannel segments, with 65% of new selling area in these formats.

• Trading update for Q2 2026 to date shows group sales up 22% and like-for-like sales up 12%, with operating gross margin up 2pp.

• Inventory reduction of 20% targeted in the coming quarters.

• CapEx for HalfPrice logistics center phase II postponed to H1 2027 for cash flow prudence.

• No profit guidance published; liquidity and covenant compliance expected to remain stable.