Pepco Group delivers record sales growth
Poundland owner Pepco Group has seen its full year revenue increase by 17.7% to a record €5,649m on a constant currency basis despite a “mixed” performance in a challenging market.
The uplift for the year to 30 September was the result of strong growth of 24.8% at its Pepco brand and 8.4% at Poundland.
While the group’s fourth quarter revenue rose by 12.5% year-on-year, group like-for-like revenues in the period were flat, but up 6% in the full year. Pepco like-for-likes in the quarter declined by 2.4% after turning negative in August and worsening in September.
Meanwhile, fourth quarter Poundland like-for-likes increased by 4.1%.
Andy Bond, executive chair of Pepco Group, said: “Group performance over the past year has been mixed against a challenging market backdrop. We opened a record number of new stores and delivered strong double-digit revenue growth resulting in record group revenues. We will deliver profit growth year-on-year and our highest-ever EBITDA outturn of approximately €750 million.
“As first announced on 12 September, the trading environment deteriorated significantly in the last quarter across Pepco’s markets, notably in Central and Eastern Europe, with weaker sales, a lower than forecast gross margin and higher costs, resulting in a reduced level of profitability in our core markets, which we are addressing.”
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