Modivo (MDV) Q3 2025 earnings summary

Executive summary

• Q3 and 9M 2025 saw revenue growth of 7–7.8% year-over-year, reaching PLN 8.2 billion, driven by omnichannel expansion and new store openings, despite weather impacts and higher costs.

• Net profit declined to PLN 291.9 million from PLN 463.4 million year-over-year, mainly due to increased costs and lower gross margin.

• Strategic investments included a PLN 1.55 billion share issue, full MODIVO.COM S.A. acquisition, and Szopex Sp. z o.o. acquisition, supporting future growth.

• Rapid expansion added 213 stores and 251,400 m² of retail space, with a focus on licensed brands and apparel market entry.

Financial highlights

• Group EBITDA for 9M 2025 was PLN 898 million, up from PLN 828 million in 9M 2024; Q3 EBITDA margin was 14%, below expectations due to expansion costs and weather impacts.

• Gross profit rose 4.1% year-over-year to PLN 4,024.0 million, but gross margin fell to 49% from 51%.

• Operating profit was PLN 735.7 million, down 0.7% year-over-year.

• Net cash from operating activities grew 28.6% to PLN 1,277.7 million, supported by inventory optimization.

• Total assets increased 22.8% to PLN 11,117.7 million; equity rose 29% to PLN 2,497.0 million.

Outlook and guidance

• 2025 revenue is expected at PLN 11.3–11.5 billion, with EBITDA of PLN 1.7–1.8 billion, both below initial targets.

• Long-term targets for 2030: revenue over PLN 25 billion and EBITDA margin of 20–24%.

• Continued focus on off-price and omnichannel growth, retail space expansion, and digital sales.