Pepco Group (PCO) Q3 2025 TU earnings summary

Executive summary

• Q3 marked a record quarter with revenues of €1.1 billion, up 8% year-on-year at constant currency, with 7.7% constant currency growth year-over-year.

• The group now comprises only Pepco and Dealz brands after the Poundland sale, simplifying the structure and focusing on growth opportunities.

• Strategic execution and operational excellence drove performance, with consistent like-for-like growth and improved product offerings.

• Like-for-like revenues grew 2.6% in Q3, with both Pepco and Dealz brands contributing.

• Board announced an initial share buyback of up to €50 million, reflecting confidence in future prospects.

Financial highlights

• Pepco achieved like-for-like revenue growth of 2.4% in Q3, its third consecutive quarter of growth; excluding FMCG, LFL up 4.8%.

• Dealz reported like-for-like sales up 5.8%, driven by strong demand in food and general merchandise.

• Gross margin improved by 180 basis points year-on-year in Q3.

• 45 net new stores opened in Q3, mainly in Central Eastern Europe.

• 9M FY25 New Pepco Group revenue reached €3.43 billion, up 8.7% year-over-year at constant currency.

Outlook and guidance

• Expectation for high single-digit revenue and underlying EBITDA growth for fiscal year 2025.

• Dealz FY25 EBITDA expected around €30 million.

• Guidance for group gross margin at 47.5% for the year.

• Approximately 250 net new stores planned for fiscal year 2025, predominantly in CEE.

• Dealz is expected to deliver full-year results in line with previous guidance.