LPP (LPP) investor relations material

Executive summary

• Achieved record growth in 2025, opening 1,029 new stores (913 Sinsay) and entering six new markets, expanding the network from 2,700 to 3,700 locations.

• Record profits in 2025: revenue of PLN 23.1bn (+19% YoY), EBITDA of PLN 5.4bn (+31% YoY), EBIT of PLN 3.3bn (+37% YoY), and net profit of PLN 2.4bn (+36% YoY).

• E-commerce revenue grew by nearly 20%, reaching PLN 6.4bn and representing 28% of total sales, with the Sinsay app surpassing major competitors in downloads.

• Maintained strong financial stability with net debt to EBITDA at 1.1 and secured PLN 13.5bn in financing for 3–5 years.

• Significant investment of PLN 3.2bn, with over PLN 1.3bn allocated to logistics, automation, and robotics.

Financial highlights

• Revenue grew 19% year-over-year in constant currency, with double-digit growth in Poland (+14.5% YoY) and abroad (+17.8% YoY) in 4Q25.

• EBITDA, EBIT, and net profit increased by approximately 35-37%.

• Gross profit margin improved to 55.6% in 2025 (+2.2pp YoY), with 4Q25 margin at 56.2%.

• Store costs grew 17%, logistics costs 14%, and back office costs 11%, all below revenue growth; SG&A per m² decreased by 10.1% YoY.

• Inventory at year-end 2025 was PLN 4.6bn, down 1.8% YoY, with inventory/m² down 21.4% YoY.

Outlook and guidance

• Guidance for 2026 remains unchanged, targeting a gross profit margin of 54-55.5% and sales of PLN 28–29bn, despite currency and geopolitical challenges.

• 1Q26 sales up 13% YoY in constant currency, with online sales up 18% and LFL up 4%.

• Focus on improving profitability, with a goal of 22% annual EBIT growth through 2027 and EBITDA margin of 23–24%.

• Planned opening of around 120 new stores in 1Q26 and 350 in 1H26.

• Continued investment in automation and technology to further reduce costs and improve efficiency.