LPP (LPP) Q4 25/26 earnings summary

Executive summary

• Achieved record growth in 2025 with 1,029 new stores opened, including 913 Sinsay stores, and entry into six new markets, expanding reach to nearly 60 million new consumers.

• 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%, with online sales reaching PLN 6.4bn (28% of total sales), and the Sinsay app surpassing major competitors in downloads and engagement.

• Maintained strong financial stability, with net debt to EBITDA at 1.1% and successful oversubscribed financing of PLN 13.5bn.

• Focused on profitability over pure growth, with a shift to cost discipline and efficiency across operations.

Financial highlights

• Revenue increased by 19% year-over-year in constant currency, reaching PLN 23.1bn.

• EBITDA, EBIT, and net profit grew by approximately 35%-37% year-over-year.

• Gross margin improved by 2.2 percentage points year-over-year to 55.6%, with strong margin management in Q4.

• Proposed dividend per share for 2026 is PLN 900, up 36% year-over-year.

• CapEx reached a record PLN 3.2bn, with over PLN 1.3bn invested in logistics, automation, and robotics.

Outlook and guidance

• Guidance for 2026 remains unchanged, targeting a gross margin of 54%-55.5% despite currency and geopolitical pressures.

• Focus on improving profitability, with a goal of 22% annual EBIT growth through 2027.

• Plans to continue investing in automation and technology, with a new highly automated warehouse opening in 2026.

• Store openings in 2026 will be more selective, prioritizing profitability over volume, with around 120 new stores in 1Q26 and 350 in 1H26.

• 2026 targets: sales of PLN 28–29bn, EBITDA margin 23–24%, net margin 9–10%, and capex ca. PLN 3.1bn.