Poundland owner Pepco Group has reported first half revenues of €2.3bn (£1.9bn), up 17.5% from the previous year, and has also vowed to protect prices for consumers in the face of the rising cost of living.
According to its second trading quarter and first half ending 31 March 2021, the positive performance was due to “significant” new store expansion across all trading brands.
Pepco said the group’s openings are ahead of guidance with 235 net new stores opened in the half year, including 84 in Western Europe.
Additionally, 586 store refurbishments have been completed, upgrading stores layout and environment, driving sales expansion and “positive customer perception.”
The group also reported “strong” half year like-for-like (LFL) sales increase of 5.3%, steered by “accelerated” LFL of 12.1% in the Second Quarter.
Pepco said it remains on track to meet guidance for the full year without any further “significant deterioration” in the macro environment.
On 31 March Andy Bond stood down as Group CEO and Trevor Masters assumed responsibility for the CEO role on an interim basis.
Masters said: “We are very pleased with this set of results, considering the global disruption faced by our business. We have maintained our focus on our strategic priorities, in particular our new store growth and our continued re-fit programme, both of which continue to delight our customers and deliver strong financial performances.
“Whilst the impact of Covid-19 progressively eased over the second quarter, the invasion of Ukraine, a country which borders three of our largest operating territories, created further volatility and unpredictability.”
He added: “We will continue to drive our significant growth agenda whilst reducing our cost of doing business. This will enable us to offset the majority of our input inflation allowing us to protect prices for our cost conscious customers.”