Zabka Group (ZAB) Q2 2026 earnings summary

Executive summary

• Announced a transformative all-cash acquisition of Żabka by Couche-Tard at PLN 32 per share, valuing Żabka at approximately $8.6 billion, with 57% of shares already committed to the tender offer.

• Achieved strong Q2 2026 results with double-digit sales growth, margin improvement, and robust cash generation, despite a challenging macroeconomic and geopolitical environment.

• Revenue for H1 2026 rose 14.7% year-over-year to PLN 14,666 million, driven by store expansion, strong like-for-like sales, and growth in new business segments.

• Żabka will continue to operate independently post-transaction, with its management team remaining in place and a focus on continuity for employees, franchisees, and customers.

• The combined platform will operate over 30,000 stores, significantly expanding Couche-Tard’s European presence and diversifying revenue away from fuel.

Financial highlights

• Sales to end customers reached PLN 9.2bn in Q2 2026, up 13.2% year-over-year.

• Adjusted EBITDA rose to PLN 1,228m (+16.2% YoY), with margin improving to 13.3% (+0.3pp YoY).

• Net profit rose 66% year-over-year to PLN 366 million in Q2, supported by lower financial costs and improved debt margins.

• Free cash flow exceeded PLN 1.2 billion in Q2, with conversion above 130%.

• Net debt to adjusted EBITDA (ex-leases) decreased to 0.7x, down from 1.2x a year ago.

Outlook and guidance

• Management reaffirmed full-year guidance for like-for-like sales and profitability, expecting to comfortably meet EBITDA margin targets.

• Like-for-like sales growth is expected to remain in the mid- to high single-digit range for 2026.

• Adjusted EBITDA margin is anticipated to stay at the upper end of the 12–13% target range.

• Ambition remains to double sales to end customers between 2023 and 2028, with over 1,300 new stores targeted annually.

• Adjusted net income margin is projected to gradually improve toward a medium-term target of ~4.5%.