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Pepco Group (PCO) investor relations material

Pepco Group H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary17 Dec, 2025

Executive summary

  • Achieved a transformational year with strategic execution, including the sale of Poundland, exit from FMCG, and focus on the core Pepco brand, driving higher margins and profitability.

  • FY25 revenue grew 8.7% to €4,523m, with underlying net earnings up 19.7% to €219m and underlying EBITDA up 10.3% to €865m.

  • Enhanced shareholder returns through a 9.6 cents/share dividend, €100m share buybacks executed/underway, and €334m free cash flow.

  • Significant progress in digital transformation, operational efficiency, and ESG initiatives, including gender balance and emissions reduction.

  • 247 net new stores opened, with strong expansion in CEE and Western Europe.

Financial highlights

  • Group revenue reached €4.5bn (+8.7% YoY); gross margin improved 100bps to 48.0%.

  • Underlying profit after tax rose 19.7% to €219m; underlying EBITDA (IFRS 16) up 10.3% to €865m.

  • Free cash flow (unlevered) was €334m (+16.4% YoY); capex reduced to €108m.

  • Dividend per share increased 57% to 9.6 cents; ongoing share buyback program up to €200m through FY27.

  • One-off IFRS 16 impairment charge of €38m impacted EBIT.

Outlook and guidance

  • FY26 revenue growth expected at 6–8%, with gross margin at least 48% and underlying EBITDA growth of at least 9%.

  • Underlying net earnings expected to exceed 25% YoY growth in FY26.

  • Targeting 250 net new stores, mainly in CEE and Western Europe.

  • CapEx guidance €160–180m, with free cash flow expected to exceed €200m.

  • Upgraded mid-term guidance: gross margin at least 48.5%, free cash flow over €250m, net earnings CAGR at least 15%.

Dealz divestment strategy given Q1 weakness
What validates Western Europe's accelerated growth?
Digital initiatives' impact on LFL sales and spend
How does Dealz divestment complete strategic refocus?
Western Europe store EBITDA margin convergence?
How will digital initiatives drive sales growth?
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Frequently asked questions

Pepco Group N.V. is a multi-format, pan-European discount variety retailer. The company has three retail brands, PEPCO, Poundland and Dealz. Pepco Group N.V. was first established in July 2014 as a subsidiary of Pepkor SA, a South African retail conglomerate. The Group now operates through two segments: a multi-price segment through PEPCO, founded in Poland in 1999 (STET) and a price-anchored segment through Poundland, founded in the UK in 1990, and Dealz, which was introduced in 2011 as part of Poundland’s international expansion. The company is based from London, United Kingdom.

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