Poundland owner posts rise in sales and profits

Pepco, which has just floated on the Warsaw Stock Exchange, said the performance in a period disrupted by Covid restrictions was evidence of its long-term strengths.

Pepco’s sales rose 9% at constant currency to  €1.99bn, helped by new store openings, in the period to March 31.

Underlying pre-tax profit rose 47.2% to €112m and underlying EBITDA was up 16.8% to €324m.

Pepco, which owns both eponymous and Dealz stores in Europe, as well as Poundland, said that like-for-likes at trading stores – those which traded for the full seven days within each individual accounting week – rose 5%, which was “consistent with the past three years’ performance pre-Covid”.

Group like-for-likes fell 2.1% ,reflecting approximately 15% of trading weeks lost because of store closures during the pandemic. 

Pepco group chief executive Andy Bond said: “We anticipate that the environment in which we operate will remain changeable and challenging in the short term, but over time as consumer behaviour returns to more normal patterns, as any Covid-related restrictions that impact our customers’ confidence to shop are further relaxed.

“However, as these results show, we have a clear and winning customer offer, a long-term growth strategy delivering stores in existing and exciting new markets, as well as a number of key initiatives to drive our sales and margin.

“As such, we remain confident about our prospects for continued profitable growth in the balance of the financial year and beyond.”