LPP (LPP) Q3 24/25 earnings summary

Executive summary

• Q3 2024 revenue reached PLN 5.2 billion, up 19.8% year-over-year (over 25% in constant currency), driven by strong omnichannel sales and Sinsay's rapid expansion, with 135 new stores opened in Q3 and Sinsay accounting for 105.

• Sinsay led growth with 43.3% YoY sales increase and 323 new stores YoY, now representing 49% of 9M 2024 revenues; international markets account for 56% of omnichannel sales.

• Omnichannel sales grew 27% YoY in constant currency, with online sales up 35.7% YoY and now 26.7% of total sales.

• Gross profit margin for Q3 2024 was 54.8%, down 1.0pp YoY, mainly due to Sinsay's value-for-money positioning and FX effects.

• Net profit for Q3 2024 was PLN 577 million, with net margin at 11.1%; nine-month EBITDA approached PLN 3 billion.

Financial highlights

• 9M 2024 revenues totaled PLN 14.5 billion, up 15.6% YoY; net profit reached PLN 1.3 billion, up 15%.

• Black Week/Black Friday omnichannel sales rose 16% YoY, with online up 28% and offline up 7%.

• Inventory increased 28.5% YoY to PLN 4.1 billion, with inventory per m² at 1,827 and turnover at 153 days.

• Net debt stood at PLN 4.67 billion, with net debt/EBITDA at 1.2x; PLN 300 million in bonds to be repaid by year-end.

• CapEx for Q3 was PLN 519 million (+79% YoY), mainly for Sinsay store openings and logistics infrastructure.

Outlook and guidance

• Q4 revenue up 22.4% YoY as of early December; 290 new stores planned for Q4 alone.

• 2024 guidance: revenue PLN 20–21 billion, gross margin 52–53%, floor space to increase 23% YoY, and CapEx at PLN 1.9 billion.

• 2025 outlook: revenue ca PLN 26 billion, gross margin 52–53%, OpEx/revenue at 40%, floor space to grow 35–40%, and record CapEx of PLN 3.5 billion.

• Plan to open 1,500+ stores in 2025, mainly Sinsay, with continued focus on Central, Eastern, and Southern Europe.