Zabka Group (ZAB) Investor Presentation summary

Business model and market positioning

• Operates nearly 12,000 stores with a tech-powered convenience ecosystem, serving 17 million consumers within 500 meters and processing 4.1 million daily transactions.

• Focuses on three consumer megatrends: ultimate convenience, digital engagement, and responsible choices, with high app and loyalty scheme usage among Polish consumers.

• Maintains a fully franchised, scalable model with over 10,000 franchisees and a clear split of responsibilities, supporting rapid expansion and attractive franchisee margins.

• Leverages AI and data-driven processes for store expansion, hyper-local assortment, logistics, and personalized customer engagement.

• Expanded into Romania with the Froo brand, opening over 100 stores by June 2025, targeting a sizeable and fast-growing market.

Financial performance and growth

• Achieved PLN 27.3bn in sales and PLN 3.5bn adjusted EBITDA in FY 2024, with a 12.8% margin.

• Q2 2025 sales to end customers reached PLN 8.1bn (+14% YoY), with adjusted EBITDA of PLN 1,057m (+20% YoY) and net profit of PLN 221m (+26% YoY).

• Like-for-like growth was 6.1% in Q2 and H1 2025, with 804 new stores opened in H1 and a revised 2025 target of 1,300+ new openings.

• Maintains strong cash flow generation (Q2 FCF PLN 1,074m, +14% YoY) and reduced net debt/EBITDA to 1.2x.

• Franchisee margins and take-home pay have grown faster than the Polish minimum wage, ensuring an attractive proposition.

Strategic initiatives and innovation

• Completed rollout of street food ovens across all stores, boosting QMS (quick meal solutions) sales and margins.

• Launched a new Żappka app, driving digital engagement, upselling, and loyalty, with 10.9 million active users as of Dec 2024.

• Introduced over 600 new products in 2024, including private label and innovative branded items, supporting traffic and basket growth.

• Retail media initiative with 4,000+ screens in 3,000 locations, engaging over 14 million customers and generating new revenue streams.

• Issued PLN 1bn in sustainability-linked bonds, with KPIs tied to sustainable product sales and packaging reduction.