Modivo (MDV) Q4 2025 earnings summary

Executive summary

• Revenue for FY2025 was revised downward to PLN 10.9 billion, with EBITDA at PLN 1.4 billion, reflecting weaker-than-expected Q4 performance and softer consumer demand.

• Q4 revenue was PLN 2.6 billion, falling short by PLN 0.5 billion versus plan, with retail, e-commerce, and wholesale underperforming.

• Gross margin declined to 46.4% in Q4, mainly due to inventory write-downs, increased promotional activity, and one-off costs.

• Net profit attributable to owners dropped sharply to PLN 21.8 million from PLN 925.1 million year-over-year.

• Major acquisitions included Szopex Sp. z o.o. and Worldbox Sp. z o.o., supporting expansion and diversification.

Financial highlights

• Q4 EBITDA was PLN 200 million, down 55% year-over-year, with a shortfall of PLN 180–200 million versus expectations.

• E-commerce revenue dropped 23% year-over-year, driven by a strategic shift away from third-party brands.

• Group costs rose 20%, while selling area expanded 28%.

• Inventory per square meter decreased by 24% year-over-year despite expansion.

• Reverse factoring limits stand at just under PLN 2 billion, with 65% utilization.

Outlook and guidance

• No official forecast for 2026; management maintains high internal ambitions but will not publish formal guidance.

• 2026 improvement expected from higher retail space (+28% YoY), better inventory, improved purchasing conditions, and reduced discounting.

• Plans to grow licensed and own brands to nearly 50% of the sales mix, reducing reliance on partnership brands.

• Worldbox integration and new logistics for HalfPrice expected to contribute positively in 2026.