Pepco Group has announced that the company’s year to date revenue of 4,209 million euros, up 19.3 percent on a constant currency basis, driven by Pepco growth of 29.3 percent and Poundland Group of 7.1 percent.
The company, which owns the Pepco and Dealz brands in Europe and Poundland in the UK, reported third quarter revenue of 1,370 million euros, up 12.5 percent on a constant currency basis, with Pepco up 15.3 percent and Poundland Group, 8.6 percent.
Group like-for-like (LFL) revenues were up 8.2 percent for the nine month period and up 2.6 percent in the third quarter.
Commenting on the results, Trevor Masters, CEO of Pepco Group, said in a release: “As we highlighted at our interim results in June, the macro-economic climate continues to be challenging, particularly in Central Europe, due to elevated levels of inflation. In addition, Pepco’s Q3 growth reflected a period where the business benefited from trading upside in the prior year driven by the influx of people from the Ukraine war into its core markets. Poundland Group delivered a strong trading performance in Q3, driven by consumers prioritising spend on FMCG items. Both Pepco and Poundland Group are in positive LFL growth at the start of Q4.”
Pepco LFL revenue increased 9.6 percent year-to-date but declined 1.2 percent in the third quarter reflecting a challenging trading environment in April and May, particularly in Central Europe, and a stronger comparative period in the prior year. Poundland Group LFL increased 6.2 percent in the nine months and 9 percent in the third quarter due to a strengthening FMCG performance.
With new store openings of 325 in nine months to date; the group remains on track to open 550 net new stores in FY23.
Pepco Group’s inaugural bond issue of 375 million euros is completed, with credit ratings achieved from Fitch, S&P and Moody’s. The group maintains its previous guidance on the full year EBITDA outlook of growth in the mid- teens on a constant currency basis.