Pepco Group posts revenue and profit growth

In its preliminary results statement, pan-European discount retailer Pepco Group said revenue for the year of 4,823 million euros was up 17.4 percent on a constant currency basis and 17 percent on an actual basis.

The company has reported like-for-like (LFL) sales growth of 5.2 percent on a constant currency basis.

Commenting on the results, Trevor Masters, CEO Pepco Group, said: “Despite industry-wide short-term challenges, Pepco Group delivered another year of good progress and resilient trading performance, driven by our successful and proven strategy.”

“We accelerated our profitable store expansion programme – our biggest source of value creation – and store refit strategy, helping to enhance our LFL performance. We also lowered our cost structure and improved back-office processes to be significantly cheaper and more efficient, helping us grow sales and deliver on EBITDA and cash generation,” Masters added.

Underlying EBITDA reached 731 million euros, at the upper end of the company’s 720 million euros to 735 million euros guidance, up 14.3 percent on a constant currency basis and 13 percent on an actual basis.

Underlying PBT of 300 million euros was up 25.8 percent on a constant currency basis and 23.2 percent on an actual basis, while underlying EPS of 0.42 euros, increased 21.3 percent on a constant currency basis and 19.3 percent on an actual basis.

The group opened 516 net new stores excluding closure of 59 Fultons stores and renewals of 727 stores. Subsequent to the year end, Neil Galloway was nominated as CFO and Andy Bond was nominated as non-executive chair of the Pepco Group.

The company added that the group remains on track to meet guidance for FY23 of delivering EBITDA growth in the mid-teens assuming constant FX rates and in the absence of any further significant deterioration in the macro environment.