LPP (LPP) Q4 24/25 earnings summary

Executive summary

• Store network reached nearly 2,850 by year-end 2024, with over half under the Sinsay brand, reflecting a strategic focus and rapid expansion, especially in Southern, Eastern Europe, and Poland.

• Achieved 16.0% year-over-year revenue growth to PLN 20.19bn, meeting 2024 guidance, with core business revenues up 19.7% to PLN 19.41bn.

• Sinsay led store expansion with 534 new stores year-over-year and is positioned as the main growth driver for the next three years.

• Full exit from the Russian market completed ahead of schedule, with final payments expected by December 2025 and 2026.

• Strategy targets doubling revenue and EBITDA by 2027, with over 7,500 stores, including 6,000+ Sinsay locations.

Financial highlights

• Group revenue grew 19.4% year-over-year, with EBIT rising to PLN 4 billion.

• 2024 net profit rose 8.4% to PLN 1.75bn; EBITDA up 11.9% to PLN 4.10bn.

• Online sales up 32% year-over-year; like-for-like sales increased 1.4%.

• Sinsay now accounts for half of group income and delivers high profitability, with average EBITDA margin at 33%.

• One-off development costs of PLN 160 million impacted annual results; logistics investments expected to yield 20-25% savings.

Outlook and guidance

• Plan to open 1,500 Sinsay stores in 2025, with seasonality favoring the second half of the year.

• E-commerce revenue targeted to double to over PLN 10 billion, with new markets including Kosovo and Albania.

• Gross margin guidance for 2027 is conservatively set at 51-52%, reflecting Sinsay’s growing share.

• CapEx to peak in 2025, then decrease as EBITDA and cash flow rise; net debt/EBITDA to remain at a safe 1.4.

• Positive 1Q25 outlook: 23% year-over-year revenue growth in constant currency, online sales up 32%, LFL sales up 1.4%.