Discount retailer Pepco Group’s year to date revenue of 4,681 million euros increased 10 percent at constant currency, while third quarter revenue of 1,481 million euros, increased 8 percent.
The company, owner of the Pepco and Dealz brands in Europe and Poundland in the UK reported a like-for-like (LFL) revenue decline of 4.3 percent in the third quarter.
Commenting on the results, Andy Bond, executive chair of Pepco Group, said: “The improved gross margin trajectory we flagged at the half-year results has continued strongly into the third quarter, and disciplined capital investment is driving strong cash generation. Looking ahead, the Group remains confident of delivering underlying EBITDA of around 900 million euros this financial year and exiting the year with an improved trajectory in LFL sales in our core Pepco business.”
The company said in a statement that Pepco brand was down 2.7 percent LFL reflecting the earlier timing of Easter, slower-selling older stock that is being traded out through markdown, and supply chain issues impacting availability of new summer stock.
Poundland was down 6.9 percent LFL due to challenges related to the introduction of new Pepco-sourced clothing and general merchandise ranges. Dealz declined 7.3 percent LFL impacted by the transition to Pepco-sourced GM and a highly competitive FMCG market.
The company opened 326 stores in nine months to date and 37 in the third quarter. Pepco Group added that it remains on track to open around 400 net new stores overall in FY24.
The group maintains its previous guidance on the full year EBITDA outlook of around 900 million euros, representing EBITDA growth of 20 percent over prior year.
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