Modivo (MDV) Q3 2025 earnings summary

Executive summary

• Q3 revenue increased 7% year-over-year to PLN 2,966 million, with strong October and back-to-school sales offsetting weak September performance, despite weather-related challenges and significant store expansion costs.

• Retail space expanded by 21% year-over-year, with 144 new stores opened, supporting growth across all segments and driving future growth through strategic investments in licensed brands and apparel market entry.

• Like-for-like sales for the group declined by 5%, with a 4% drop in foot traffic, mainly due to weather sensitivity in footwear.

• Half Price and CCC brands continue rapid expansion, with Half Price less sensitive to weather and showing strong margin recovery in October.

• Group revenue for 9M 2025 reached PLN 8.2 billion, below initial expectations due to accelerated retail expansion, delayed store openings, and temporary cannibalisation effects.

Financial highlights

• Group EBITDA margin for Q3 was 14%, below expectations due to high costs from store openings and weather impacts, with adjusted EBITDA margin at 13.3%.

• Group EBITDA for 9M 2025 was PLN 898 million, up from PLN 828 million in 9M 2024.

• CCC brand EBITDA margin at 17% in Q3, down 5pp year-over-year; 12-month margin remains above 20%.

• Half Price EBITDA margin at 16%, with revenue up 25% and selling area up 49% year-over-year; EBIT dropped 57% due to higher pre-opening costs.

• Modivo EBITDA margin stable at 9% for Q3, 11% over 12 months; sales up 1% year-over-year, with a 9% YoY reduction in costs.

Outlook and guidance

• Full-year 2025 revenue guidance revised to PLN 11.3–11.5 billion and EBITDA to PLN 1.7–1.8 billion, reflecting a challenging environment and higher pre-opening costs.

• Q4 expected to be strong for Half Price, with most expansion costs already incurred and the business well-prepared for peak season.

• Long-term goal is to reach PLN 25 billion in revenue and 24% EBITDA by 2030, with continued focus on expansion and margin improvement.