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 expansion into six new markets, reaching 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.

• Investments totaled PLN 3.2bn–6bn, with over PLN 1.3bn directed to logistics, automation, and robotics.

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

Financial highlights

• Revenue grew 19% year-over-year in constant currency, with double-digit growth in both Poland (+14.5% YoY) and abroad (+17.8% YoY) in 4Q25.

• EBITDA, EBIT, and net profit each increased by approximately 35%-37%.

• Gross margin improved by 2–2.2 percentage points year-over-year, reaching 55.6% in 2025, with strong margin management in Q4.

• Store costs rose 17%, logistics costs 14%, and back office costs 11%, all below revenue growth; SG&A per m² decreased by 10.1% YoY.

• CapEx reached a record PLN 3.2bn in 2025, with PLN 2.6bn reserved for future investments.

Outlook and guidance

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

• Focus on profitability over growth, with plans to double EBIT by 2027 to PLN 8bn, requiring 22% annual growth in 2026 and 2027.

• 1Q26 sales up 13% YoY in constant currency, with online sales up 18% and LFL up 4%.

• Planned opening of around 120 new stores in 1Q26 and 350 in 1H26, with more selective expansion prioritizing profitability.

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