Modivo (MDV) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered record EBITDA of PLN 481 million, with LTM EBITDA margin up 5pp year-over-year to 17% and profitability improving despite a challenging environment.

• Group revenue rose 11% year-over-year, with like-for-like sales up 4% at constant currencies, and rapid retail space expansion exceeding targets.

• Eighth consecutive quarter of cost ratio improvement, reflecting strong cost discipline.

• Expansion of commercial space and systematic cost discipline remain key drivers for achieving the five-year plan targeting PLN 25 billion in revenue and at least 20% EBITDA margin by 2030.

• Retail space expanded by 17% to 41% year-over-year, with 160 new stores opened and further growth planned.

Financial highlights

• Q2 2025 revenue increased 11% year-over-year to PLN 2,884 million, with gross profit up 10% to PLN 1,405 million and gross margin at 48.7%.

• EBITDA climbed 18% to PLN 481 million, with margin up 1pp to 16.7%; EBIT rose 19% to PLN 313 million, margin up 0.7pp to 10.9%.

• Cost ratio improved by 1.7pp to 38.4%, supporting profitability.

• Net financial debt decreased by 10% quarter-over-quarter, reflecting strong operational discipline.

• Modivo Group improved EBITDA margin by 7pp year-over-year to 10%, with costs down 29% in Q2.

Outlook and guidance

• No changes to annual targets; management remains optimistic for H2 2025 due to accelerated store openings and strong inventory preparation.

• Strategic objectives target PLN 25+ billion revenue and PLN 5 billion EBITDA by 2030, with annual retail space expansion of 250,000–350,000 m².

• Double-digit sales increases expected at the start of Q3, with high margins and strong product availability.

• Inventory optimisation includes a 30% year-over-year reduction in orders for upcoming collections.

• 2030 marks the conclusion of the incentive scheme tied to these ambitions.