Zabka Group (ZAB) Investor presentation summary

Business model and market positioning

• Operates a tech-powered convenience ecosystem with over 12,750 stores in Poland and Romania, serving 18 million consumers within 500 meters of a store and processing 4.3 million daily transactions.

• Focuses on three consumer megatrends: ultimate convenience, digital engagement, and responsible choices, with high digital adoption and loyalty scheme participation.

• Fully franchised model with ~10,800 franchisees, offering attractive margins and low voluntary churn, supported by robust training and support.

• Store formats are optimized for on-the-go consumption, with a strong emphasis on QMS (Quick Meal Solutions) and street food, driving differentiation.

• AI and data-driven processes underpin expansion, assortment, pricing, and logistics, enabling hyper-localization and operational efficiency.

Financial performance and growth

• Achieved PLN 31.1bn in sales to end customers in FY 2025 (+14.1% YoY), with adjusted EBITDA of PLN 4.1bn and a 13.1% margin, exceeding guidance.

• Adjusted net profit reached PLN 1,003m (3.2% margin), with reported net profit at PLN 1,057m, both showing strong YoY growth.

• Q1 2026 sales to end customers were PLN 7.4bn (+12% YoY), with adjusted EBITDA of PLN 674m (+13.1% YoY) and a margin of 9.1%.

• Free cash flow in FY 2025 was PLN 1.7bn (+13.7% YoY), and net debt/adjusted EBITDA stood at 1.1x at the end of Q1 2026, reflecting strong deleveraging.

• Franchisee margin increased to 17.0% in 2025, with continued improvement in profitability and franchisee engagement.

Expansion and strategic initiatives

• Opened 1,394 new stores in 2025 (1,276 in Poland, 118 in Romania), with a target of 1,300+ new stores annually in the medium term.

• Romanian operations ramped up to 204 stores by March 2026, with strong local reception and revised long-term potential to 7,600 stores.

• Digital Customer Offering (DCO) businesses, including Maczfit, Dietly, Jush!, and Delio, delivered double-digit growth and are targeted to grow 5x by 2028.

• New digital initiatives such as Żappka app upgrades, gamification, and retail media (Żabka Ads) are enhancing customer engagement and driving incremental revenue.

• Strategic capital allocation prioritizes growth, with disciplined capex (5.2% of sales in 2025) and a payout ratio target of 50-70% of net profit.