Zabka Group (ZAB) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 performance with sales to end customers of PLN 8.5 billion, up 14% year-over-year, and like-for-like growth of 4.5%, despite adverse weather conditions impacting results by 1-2 percentage points.

• Store network expanded to 12,099 locations across Poland and Romania, with rapid growth in Romania and 1,127–1,296 new stores opened in the last 12 months.

• Adjusted EBITDA grew 14% year-over-year to PLN 1.3 billion in Q3, and adjusted net profit surged 48% to PLN 505 million, driven by operational performance and refinancing.

• Net financial debt to adjusted EBITDA reduced to 1x, reflecting robust cash generation and enabling readiness for dividend payments.

• Revenue for the first nine months of 2025 grew 14.1% to PLN 20,230 million, with net profit up 40.5% to PLN 530 million.

Financial highlights

• Q3 2025 sales to end customers reached PLN 8.5 billion, up 14% year-over-year; gross profit was PLN 1.5 billion, up 13% year-over-year.

• Adjusted EBITDA for Q3 was PLN 1.3 billion, up 14% year-over-year, with margin expansion of 9 basis points; adjusted net profit was PLN 505 million, up 48%.

• Free cash flow for Q3 was over PLN 600 million, slightly below last year due to a one-off sale and leaseback in Q3 2024; for 9M 2025, it was PLN 1,804 million, down 5% year-over-year.

• Gross profit margin for Q3 was 17.8%; adjusted EBITDA margin for Q3 was 15.0%; net profit margin was 5.4%.

• Franchisee margin increased to 17.1% for the first nine months of 2025.

Outlook and guidance

• Store network target raised to 16,000 by end of 2028, with annual rollout of 1,300+ stores in Poland and Romania.

• Like-for-like sales expected to remain mid-single-digit for 2025, with mid to high single-digit trajectory over the medium term.

• Adjusted EBITDA margin for 2025 anticipated at the upper end of 12%-13% range.

• Dividend payout policy formalized at 50%-70% of consolidated net profit annually, with a 50% payout recommended for 2025.

• Continued investment in new business areas, especially in Romania and digital offerings, is expected.