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, driven by expansion and product diversification.

• Gross margin hit a record 51.8%, the highest in recent years, supported by a higher share of licensed brands.

• Net loss for the quarter was 24.1 mln PLN, a decrease of 117.3 mln PLN year-over-year.

• The group expanded its retail footprint to 1,488 stores, with significant growth in HalfPrice and Worldbox formats.

Financial highlights

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

• Group gross margin improved by 1.3pp year-over-year to 51.8%.

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

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

• Cash flow from operations was strong at 346.1 mln PLN, while investment outflows totaled -234.4 mln PLN.

Outlook and guidance

• Expansion focus will shift to HalfPrice, with 65% of new selling area in this segment and further international growth planned.

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

• Trading update for Q2 2026 to date shows group sales up 22% and like-for-like sales up 12%.

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

• Sensitivity analysis indicates financial covenants will be met even under adverse macroeconomic scenarios.