Pepco Group posts 4.3% Q1 revenue growth
Former Poundland owner Pepco Group has reported a 4.3% increase in revenue on a constant currency basis to €1.4 billion in its first quarter.
In the three months to 31 December, group like-for-like revenues, excluding FMCG, grew by 3.3% as the Pepco brand increased its revenue by 4.2% following particularly strong trading in December.
Subscribe to TRBThe group said the performance was driven by volume growth and a focus on strengthening its price leadership position, particularly in its key markets of Poland, Iberia and Italy.
Meanwhile, like-for-like sales at the Dealz brand fell by 7.7%, reflecting operational disruption in October and November during the replatforming that followed the sale of Poundland.
Pepco Group operated 4,410 stores at the end of the quarter, having opened 51 net new stores during the period. The group expects to open around 250 net new stores in FY26, all focused on the Pepco brand.
Stephan Borchert, chief executive of Pepco Group, said: “We’ve made an encouraging start to the year, with Pepco delivering a resilient performance during the first quarter.
“I’m especially pleased with our strong December trading, against intensifying promotional activity across our key territories. Western Europe, in particular, continues to perform well, achieving consistent double-digit like-for-like revenue growth (excluding FMCG) through the quarter.
“The group also delivered a significant year-on-year increase in gross margin, despite disciplined price investment.”
Pepco Group said its outlook for the year ahead remains unchanged from the guidance given with its recent FY25 preliminary results.
Borchert added: “We’ve built a business with strong foundations – we have a clear customer proposition, an expanding store footprint, and operational momentum that positions us well to compete.”
