Pepco Group, the fast-growing variety discount retailer which owns the Pepco and Dealz brands in Europe and Poundland in the UK, today reports a trading update for the second financial quarter of FY23 ending 31 March 2023.1
· H1 Group revenue of €2,839m, +22.8% growth year-on-year on a constant currency basis, driven by strong Pepco growth of +36.9%
· H1 Group like-for-like (LFL) revenues up 11.1% in H1, with Q2 LFL of 8.5%
o Pepco: +15.8% LFL growth in H1; +10.7% LFL growth in Q2
o Poundland Group: +4.9% LFL growth in H1; +5.7% LFL growth Q2
· New store openings continue across all brands with 166 net new stores added in the first six months
· The business remains on track to deliver full year EBITDA growth in line with guidance communicated at the Q1 update
Commenting on the results, Trevor Masters, CEO of Pepco Group, said:
“Pepco has recorded an encouraging second-quarter trading performance against the backdrop of a continuing inflationary environment for both customers and the business. Demand for our products remains strong, and double-digit like-for-like revenue growth demonstrates solid progress for the Group. We have continued to deliver against our strategic priorities, including the successful store refit strategy and profitable store expansion programme – our biggest source of value creation.
“For the first time, the number of net new store openings in Western Europe, including our 100th store in Italy, outweighed the number of openings in Central Europe across the quarter. This is a strategically important milestone for the Group and the continued positive consumer response to our proposition across those markets demonstrates the whole of Europe is addressable to us. We will look to leverage this opportunity further over the rest of the year, and our plans to launch the Pepco brand in Portugal and Bosnia and Herzegovina in the second half of 2023 remain on track.
“While the consumer environment remains challenging due to inflationary pressures, our strategy of price leadership gives us continued conviction in our ability to win customers and market share, which we have grown in our key markets over the last quarter. We remain confident on meeting our guidance for full-year EBITDA, including our targets for the new store opening programme.
“I would also like to take this opportunity to formally welcome Neil Galloway to Pepco as the Group Chief Financial Officer. His impressive track record and experience makes him a valuable addition to the leadership team as we continue to accelerate and deliver on our proven strategy.”