Pepco Group (PCO) Q2 2026 TU earnings summary

Executive summary

• Delivered solid trading in H1 FY26, with continued revenue and gross margin growth, especially in Poland and Western Europe.

• Achieved fifth consecutive quarter of like-for-like revenue growth, with +4.2% LFL revenue growth excluding FMCG year-to-date.

• Store expansion on track, with 31 net new stores opened and entry into North Macedonia planned, bringing presence to 19 countries.

• Digital loyalty program launched in Poland, surpassing 800,000 app downloads within weeks.

Financial highlights

• Pepco revenue up +4.8% on a constant currency basis for the 25 weeks to 22 March 2026.

• Group total revenue up +3.7% on a constant currency basis for the same period, impacted by weaker Dealz trading.

• Group LFL revenue up +3.1% excluding FMCG; Dealz LFL revenue declined by -9.8%.

• Recent weeks saw LFL revenue growth of +9.6% excluding FMCG, driven by strong seasonal collections.

Outlook and guidance

• Full-year FY26 guidance unchanged, expecting reported revenue growth of 6% to 8%, with a two percentage point negative impact from exiting FMCG.

• Underlying EBITDA (IFRS 16) growth expected to increase by at least 9% year-over-year, despite €25m–€35m in transformation costs.

• Underlying net earnings growth expected to exceed 25% year-over-year, aided by lower interest costs and improved tax rate.

• Confident in delivering FY26 results in line with December guidance, despite uncertain consumer and geopolitical environment.