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Pepco Group posts 9 percent growth in H1 sales

By Prachi Singh

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Business

Image: Pepco, Facebook

European discount retailer, Pepco Group, owner of the Pepco and Dealz brands in Europe and Poundland in the UK, in its interim result statement for the first six months said, the group delivered total revenue growth on a constant currency basis of 9 percent and 4.4 percent on a reported basis to 1,995 million euros. The company reported LFL revenue decline of 2.1 percent primarily driven by 15 percent of trading weeks lost to Covid-19 related store closures.

Commenting on the results, Andy Bond, CEO, Pepco Group, said in a release: “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.”

Highlights of Pepco Group’s H1 performance

The company added that during January and February 2021, on average, 20 percent of group stores were closed which impacted revenue performance with year-on-year declines across these two months averaging approximately 6 percent, with all store LFL revenue totalling negative 12% but with trading store LFL growth of 4 percent.

All store LFL revenue growth in Pepco during March 2021 totalled over 60 percent. In the UK, the restrictions were introduced from 23rd March 2020 following a short period of stockpiling by consumers. Balancing these factors March year on year sales increased at group level by approximately 35 percent.

Across the first half, gross margin increased by over 100 bps to 42.4 percent, while group underlying EBITDA grew by 16.8 percent to 46.7 million euros.

The Group continued to deliver new stores in all 16 territories in which it operates. A total of 225 new stores were opened in the first half year increasing the group’s store portfolio by 402 versus last year.

Within this Pepco opened 129 stores in the half and 299 versus the end of March last year, with openings in all its 13 trading territories.

The company further said that the roll out of the Dealz fascia in Spain and Poland continued with 14 and 13 stores opened, respectively. At the end of the period Dealz traded from 123 locations.

Coronavirus
dealz
Pepco Group
Poundland