Modivo (MDV) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking annual sales, with 2024 revenue at PLN 12.0 billion and ambitions to reach PLN 12–20 billion in 2025, alongside a long-term target of PLN 25 billion revenue and 20% EBITDA margin.

• Annual EBITDA reached PLN 1,635 million in 2024, with net profit at PLN 1,023 million, and Q1 2025 EBITDA at PLN 377 million, reflecting strong profitability.

• Aggressive expansion underway, targeting 370 new store openings and 250,000–350,000 sq. m. of new retail space in 2025, with strong results in Spain and Italy.

• Share capital increased by PLN 1.55 billion to fund Modivo minority buyout and strategic growth.

• Cost discipline and operational efficiency remain priorities, with management changes and incentive schemes supporting value creation.

Financial highlights

• Like-for-like sales remain strong, with 2024 revenue up from PLN 10.2 billion to PLN 12.0 billion and Q1 2025 revenue at PLN 2,350 million, up 4% year-over-year.

• EBITDA (excluding IFRS 16) hit PLN 1,635 million in 2024, with Q1 2025 EBITDA up 25.5% year-over-year to PLN 377 million.

• Net profit from continuing operations reached PLN 1,023 million in 2024, a turnaround from a PLN -909 million loss in 2023.

• Gross margin stable at 51% year-over-year; group margin improved by nearly three percentage points in Q1.

• Inventory reduction plan aims for a 20–25% decrease by year-end.

Outlook and guidance

• 2025 EBITDA margin target set at 12–20%, with continued revenue growth expected from HalfPrice expansion and omnichannel investments.

• Over 350,000 m² of retail space signed for, HalfPrice accounting for 60% of expansion.

• Inventory and cost management, automation, and logistics improvements remain key priorities.

• No rights offering planned; refinancing and lower-cost debt are preferred.

• Management anticipates no breach of financial covenants in the next 12 months, supported by recent refinancing.