Zabka Group (ZAB) Q1 2026 earnings summary

Executive summary

• Sales to end customers reached PLN 7.4 billion, up 12% year-on-year, with like-for-like growth of 3.2% and strong network expansion to 12,750 stores, including 435 new stores in Q1 and continued growth in Romania.

• Adjusted EBITDA rose 13.1% year-on-year to PLN 674 million, with margin improving to 9.1%.

• Net loss narrowed to PLN 73 million from PLN 125 million, with adjusted net loss at PLN 51 million, reflecting improved operating performance and lower financial costs.

• Like-for-like sales growth was stronger on weather-neutral days, but Q1 was impacted by severe winter weather, reducing footfall and sales.

• Maintained a robust balance sheet, with net debt to adjusted EBITDA at 1.1x, improving by 0.4x year-on-year.

Financial highlights

• Revenue rose 15.9% year-on-year to PLN 6,565 million, with gross profit up 17.8% to PLN 959 million and gross margin improving to 12.9%.

• Franchisee margin improved to 18.9%, up 0.5pp year-on-year.

• Free cash flow was PLN 28 million, down from PLN 91 million year-on-year due to higher inventory and promotional activity.

• Adjusted EBITDA margin improved to 9.1%, up 0.1 percentage points year-on-year.

• Interest expenses on debt declined by over 30% year-on-year, following refinancing.

Outlook and guidance

• Targeting over 1,300 new store openings in 2026 and annually in the medium term for Poland and Romania.

• Expecting mid to high single-digit like-for-like growth for full year 2026 and medium term.

• Stable adjusted EBITDA margin anticipated at the top end of the 12%-13% range.

• Gradual improvement in adjusted net income margin towards 4.5% medium-term target.

• Continued investment in New Growth Engines, especially in Romania and digital offerings.