Pepco Group warns on Red Sea disruption as it reports record Q1 revenues
Pepco Group has reported record first quarter revenue of €1.9 billion after an uplift of 10.8% at constant currency.
In the period ending 31 December, group like-for-like revenues declined by 2.3% and there was a 3.7% fall at Pepco against a tough comparative period in the previous year when like-for-likes climbed by 20%.
Sales at Dealz dropped by 4.6% due to planned lower stock availability in general merchandise
Meanwhile, sales at Poundland edged up 0.9% after the retailer benefited from a strong peak Christmas performance driven by demand for FMCG.
Andy Bond, executive chair of Pepco Group, said: “The group delivered record revenue in its first quarter. Whilst the Pepco brand saw LFL revenues down across the quarter against a tough comparative period last year, it was encouraging to see the LFL trend improve over the three months in its core CEE markets. Poundland continued to perform robustly in Q1, boosted by strong sales of FMCG.”
Looking ahead, Pepco Group said it remains cautiously optimistic for 2024 although it warned that the current situation in the Red Sea is leading to elevated spot freight rates and delays to container lead times.
Bond added: “The group has a market-leading customer proposition, strict focus on returns, and proven profitable store model that makes the leadership team confident in delivering future success across our core European markets.”