Poundland owner Pepco has reported a net loss due to a non-cash impairment charge for the high street discounter.
Pepco made a net loss of €662m (£548m) for the year to September 30, citing a non-cash impairment charge of €775m (£642m) for Poundland – reflecting the retailer’s “weak performance and outlook”.
Pepco posted underlying EBITDA of €944m (£823m) for the period, in line with guidance and up from the €754m (£624m) it made in 2022/23.
New Pepco chief executive Stephan Borchert said: “At Poundland, recent performance has been very challenging, impacted by declines in clothing and general merchandise following the transition to Pepco-sourced product ranges at the start of the year. We are taking swift action to get Poundland performance back on track, focusing on a return to Poundland’s strengths.
“We will also closely evaluate Poundland’s overall competitive positioning and requirements for future success as an FMCG-led format. We will provide further updates on Poundland during the first half of 2025.”
Borchert became chief executive of Pepco at the start of October.
“I am excited to join Pepco Group at this important stage in its evolution toward a company focused on targeted new store expansion, higher capital returns, and growing earnings and free cash flow,” he added.
”We plan to deliver further strategic and financial progress during FY25, as I will describe in more detail at our capital markets day in March 2025.”
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