Modivo (MDV) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 increased by 6% year-over-year to PLN 296 million, reflecting improved core operations and margin expansion despite challenging weather and geopolitical conditions.

• Group revenue reached PLN 2.4 billion, up 4% year-over-year, with like-for-like sales up 1% in constant currencies.

• Gross margin hit a 10-year high at 51.8%, up 1.3 percentage points year-over-year, driven by a higher share of licensed brands across all business lines.

• Inventory per square meter declined 15% year-over-year, with a 2% overall reduction despite a 40% increase in store count.

• All main business lines contributed positively to margin improvement.

Financial highlights

• Adjusted EBITDA margin remained stable year-over-year at 12.1%.

• FX impacts reversed year-over-year, with a swing of over PLN 70 million.

• Worldbox consolidation contributed a negative PLN 49 million impact.

• Performance marketing costs reduced by PLN 50 million year-over-year, now 12% of sales (down 6pp).

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

Outlook and guidance

• Expansion focus will shift to off-price formats, with 65% of new selling area in this segment.

• Worldbox revenue target for 2026 is PLN 600 million, with PLN 1 billion as a medium-term goal.

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

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

• 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.