Zabka Group (ZAB) Q4 2025 earnings summary

Executive summary

• Achieved strong strategic and financial progress in 2025, with robust growth across physical and digital channels, and significant expansion in Poland and Romania.

• Sales to end customers reached PLN 31.1 billion, up 14.1% year-over-year; revenue at PLN 27.2 billion, up 14.1%.

• Opened 1,394 new stores (1,276 in Poland, 118 in Romania), surpassing guidance and expanding the network to 12,339 stores.

• Received AAA MSCI ESG rating, EcoVadis Platinum Medal, and launched new own brand GOOD MOOD, supporting sustainability and value proposition.

• New growth engines (digital and Romania) contributed 11% to sales growth, with digital customer offering sales up 25% year-over-year.

Financial highlights

• Adjusted EBITDA rose to PLN 4.1 billion (13.1% margin), up 16% year-over-year.

• Adjusted net profit exceeded PLN 1 billion, growing over 40% year-over-year; reported net profit PLN 1.06 billion, up nearly 80%.

• Free cash flow reached PLN 1.7 billion, up 13.7%, with FCF conversion at 59%.

• Net debt to adjusted EBITDA improved to 1x from 1.5x, reflecting strong deleveraging.

• Franchisee margin rose to 17% of sales, with voluntary churn declining to 8.1%.

Outlook and guidance

• Plans to open over 1,300 new stores annually in Poland and Romania in the medium term.

• Expects mid- to high-single-digit like-for-like growth and stable adjusted EBITDA margin at the top end of 12%-13%.

• Gradual improvement in net income margin towards 4.5% over the medium term.