LPP (LPP) Q2 24/25 earnings summary

Executive summary

• Q2 2024 revenue reached PLN 5.0 billion, up 9.4% year-on-year, with double-digit omnichannel growth and strong offline (+17.5%) and online (+12%) performance, driven by Sinsay and House collections.

• Gross margin improved by 4.6 percentage points year-on-year to 52.5%, with operating profit at PLN 611 million and EBITDA surpassing PLN 1 billion (+7.9% YoY).

• 122 new stores opened in Q2, mainly Sinsay, bringing the total to 2,492 stores (+351 YoY), with international expansion led by Southern Europe.

• International sales accounted for over 53% of omnichannel revenues, with notable growth in Romania, Ukraine, and Czech Republic.

• Two new e-commerce fulfillment centers launched in Poland and Romania, equipped with AI and sustainable solutions.

Financial highlights

• H1 2024 revenue reached PLN 9.3 billion, up 13.3% year-on-year, with net profit at PLN 720 million (+30.1% YoY).

• Gross margin for H1 improved to 52.3% (+3.6pp YoY); EBIT margin at 11.0% (+0.8pp YoY); EBITDA margin at 19.5%.

• Online sales grew 17.3% YoY, representing 25% of total sales.

• Net debt at Q2 end was PLN 4 billion, with net debt/EBITDA at 1.0, and no bond roll-over plans.

• CapEx in Q2 exceeded PLN 400 million, mainly for offline network and logistics, with a full-year target of PLN 1.5 billion.

Outlook and guidance

• Positive Q3 outlook, with group revenue up over 30% year-on-year from August 1 to September 20, and September growth at 38%.

• Full-year 2024 guidance: revenue of PLN 20–21 billion, gross margin 52–53%, operational costs/revenue below 40%, CapEx PLN 1.5 billion, and 700 new store openings.

• Ambitious floor space growth of 20% annually for the next two to three years.

• Plans to maintain safe debt levels and no bond rollovers.