Pepco Group, owner of Poundland, Dealz, and Pepco, projects record-breaking full-year revenues despite challenges.
- The group anticipates reaching revenues surpassing €6bn (£5bn), marking a 10% year-on-year increase.
- Underlying EBITDA for the 51-week period is expected to reach at least €900m (£750m), a 20% improvement.
- Despite a 3.1% drop in like-for-like revenue, 390 new stores are expected by year’s end.
- Pepco Group plans to publish its preliminary results on December 10, 2024.
Pepco Group, the parent company of discount retailers Poundland, Dealz, and Pepco, has announced ambitious revenue projections for the fiscal year ending September 22, 2024. The organization expects to achieve revenues exceeding €6bn (£5bn), representing a 10% increase compared to the previous year, even though they experienced a 3.1% reduction in like-for-like revenues.
The company’s pre-close trading update, released on September 26, 2024, highlights an anticipated underlying EBITDA of at least €900m (£750m) for the 51-week period, illustrating a substantial 20% growth from the previous year. This growth trajectory is supported by the planned addition of 390 new retail outlets by the conclusion of the calendar year, including 64 stores inaugurated during the fourth quarter alone.
Andy Bond, Pepco Group’s executive chair transitioning to non-executive chair on October 1, attributed the decline in like-for-like revenues to ongoing supply chain disruptions. Bond stated, “While there is much more to do, particularly around like-for-like sales progress, we remain committed to expanding our price leadership position, enhancing the core customer proposition, and improving our supply chain capabilities.”
The executive highlighted the group’s focus on strategic capital expenditure to drive free cash flow generation, underscoring its commitment to delivering further strategic progress in the fiscal year 2025. Pepco Group’s forthcoming preliminary results for the 12 months ending September 30, 2024, are scheduled for release on December 10, 2024.
Pepco Group’s forward-looking strategy aims to sustain its growth momentum amidst challenges in the retail sector.
