On 3 June 2026, the Group announced that it had agreed the sale of its Dealz Poland business, completing its strategic exit from fast-moving consumer goods (FMCG) retail and creating a pure-play Pepco business. Accordingly, the highlights below focus on the Group excluding Dealz (the Pepco brand together with central functions), unless otherwise stated.

HIGHLIGHTS

• Pepco delivered another quarter of strong, broad-based growth, with Q3 FY26 revenue up +8.5%
• Like-for-like (LFL) revenue growth excluding FMCG of +5.4% (LFL including FMCG of +4.2%), supported by positive customer reaction to our new product ranges and a sharper price focus
• Growth led by Western Europe, where LFL revenues excluding FMCG grew +15.0% in the quarter, with CEE South delivering LFL growth excluding FMCG of +3.6% and CEE North LFL excluding FMCG +3.6% against strong prior-year comparatives
• On a two-year basis, Q3 FY26 LFL revenue growth excluding FMCG was +10.2%, underscoring the sustained improvement in the underlying business
• Continued progress on gross margin, up 290 basis points year-on-year to 51.9% in 9M FY26, driven by sourcing efficiencies and FX tailwinds
• Net new openings of 74 Pepco stores in Q3 FY26 (YTD 136); with a total of 4,151 Pepco stores in operation at the end of the quarter. On target to open approximately 250 net new stores in FY26
• FY26 outlook upgraded following Dealz sale. Now expect gross margin of ~51% (previously >49.4%), mid-teens EBITDA growth (previously low-teens), and ~€300m of unlevered FCF (previously >€250m)
• The previously announced tender buyback of up to €400m remains on track to complete during FY26

FINANCIAL PERFORMANCE (3 months to 30 June 2026)

Commenting on the results, Stephan Borchert, Chief Executive Officer of Pepco Group, said:

“Our impressive third-quarter performance reflects continued execution against our New Pepco strategy, the strength of the Pepco brand and the consistency we are building across the business. Pepco like-for-like revenues grew by +5.4% excluding FMCG and double-digit on a two-year basis, demonstrating that the improvements made in availability, price leadership and product ranges are resonating with customers. Our Western European business delivered an exceptional quarter, with like-for-like revenues up 15.0% excluding FMCG, underpinning our confidence to accelerate growth in the region.

“On 3 June 2026, we agreed the sale of our Dealz Poland business, marking the final step in the strategic transformation of our portfolio into a pure-play Pepco business, and completing our exit from FMCG retail following the sale of Poundland in June 2025.

“With a simpler structure, strong cash generation and clear momentum behind the Pepco brand, we look forward with confidence to delivering further profitable growth and enhanced returns for shareholders.”

€400M TENDER BUYBACK

At its H1 FY26 interim results on 21 May 2026, the Group confirmed its intention to make a special, one-time capital return to shareholders of up to €400m during FY26, by way of a pro-rata tender buyback in which Ibex, the Group’s majority shareholder, is expected to participate. The return will be funded through a combination of the Group’s existing internal cash reserves and a modest amount of new external debt, increasing pre-IFRS 16 leverage to approximately 1.0x EBITDA — the middle of the Group’s target range of 0.5x to 1.5x — representing a prudent and efficient use of the balance sheet. This followed the early completion of the Group’s previous €200m share buyback programme (FY25–FY27), with the final €52.9m tranche completed on 15 May 2026.

We expect the tender buyback of up to €400m to complete during the current financial year, with further details to be announced in due course.

SALE OF DEALZ POLAND

On 3 June 2026, the Group announced that it had agreed the sale of its Dealz Poland business — comprising 100% of the share capital of Dealz Poland sp. z o.o. — to Modella Capital, a specialist European retail investor, for nominal consideration (PLN 1). The sale will create a pure-play Pepco business and is the final step in executing the Group’s strategy to simplify its structure and focus on its higher-growth, higher-margin Pepco clothing and general merchandise business, as set out at the 2025 Capital Markets Day. It completes the Group’s exit from FMCG retail following the sale of Poundland in June 2025.

Antitrust approval for the transaction has now been received by Modella, with completion expected imminently. On closing, the Group will provide an 18-month, asset-backed vendor financing facility of up to GBP 20m equivalent, secured over inventory, and will enter into an Exit Participation Agreement entitling Pepco Group to 35% of the net cash proceeds of any future onward sale of Dealz (with no time limit), together with transitional services agreements for a finite transition period.

Following completion, Dealz will be reclassified into discontinued operations in the Group Income Statement and fully deconsolidated from the Group’s FY26 year-end financial statements.

OUTLOOK

Following the agreed sale of Dealz Poland, the Group is upgrading its forward-looking guidance for FY26 to a basis that excludes Dealz, in order to provide investors with a clearer view of the continuing, pure-play Pepco business. The previous FY26 guidance, set out at the H1 FY26 interim results on 21 May 2026, was provided on a Group-including-Dealz basis. The revised guidance below reflects the higher-growth, higher-margin profile of the Group excluding Dealz.

On this revised basis, the Group continues to expect FY26 revenue growth of 6–8%. However, gross margin is now expected to be around 51% (previously at least 49.4% on a Group-including-Dealz basis), reflecting strong trading to date. As a result, underlying EBITDA (IFRS 16) growth is now expected to be in the mid-teens (previously low-teens), measured against a restated FY25 underlying EBITDA base for the Group excluding Dealz of €841m.

Full-year underlying net earnings for the Group excluding Dealz is expected to be above 50%, against a restated FY25 underlying net earnings base of €234m. Unlevered free cash flow is now expected to be around €300m (previously in excess of €250m). The Group continues to expect to open around 250 net new stores in FY26.

*Underlying EPS (earnings per share) growth is expected to exceed underlying net earnings growth reflecting the accretive impact of our share buyback programme and upcoming tender buyback