Pepco Group (PCO) Q3 2025 TU earnings summary

Executive summary

• Q3 marked a record quarter with revenues of €1.1 billion, up 8% year-on-year at constant currency, following the sale of Poundland and a focus on Pepco and Dealz brands.

• Like-for-like revenues grew 2.6% in Q3, with both Pepco and Dealz contributing.

• Strategic execution and operational excellence drove performance, with Pepco achieving its third consecutive quarter of like-for-like growth.

• The group is positioned for significant growth opportunities with a simplified structure and ongoing transformation initiatives.

• Board announced an initial share buyback of up to €50 million, reflecting confidence in future prospects.

Financial highlights

• Q3 revenues reached €1.1 billion, an 8% increase year-on-year at constant currency.

• Pepco like-for-like revenue grew 2.4%, and excluding FMCG, growth was 4.8%.

• Dealz reported like-for-like sales up 5.8% in Q3, driven by strong demand in food and general merchandise.

• Gross margin improved by 180 basis points year-on-year in Q3.

• 9M FY25 group revenue reached €3.43 billion, up 8.7% year-on-year at constant currency.

Outlook and guidance

• Fiscal year 2025 revenues and underlying EBITDA for Pepco expected to grow in the high single digits.

• Dealz FY25 EBITDA expected around €30 million.

• Guidance for group gross margin is 47.5% for the year.

• Approximately 250 net new stores are planned to open in fiscal year 2025, mainly in Central Eastern Europe.

• Dealz is expected to deliver full-year results in line with previous guidance.