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Pepco has reported a 6% decrease in profit before tax from €144m (£124m) down to €134m (£115m) during the six months ended 31 March 2023.
Despite this the company saw a 22% increase in its revenue from €2.4bn (£2.07bn) to €2.8bn (£2.41bn) on a constant currency basis.
The retailer put this discrepancy down to its investment in stores and expansion and various supply chain costs and inflation.
This is reflected by the company’s 12% increase in stores up to 4,127, mostly driven by the growth of Pepco stores in Western Europe.
Pepco also stated that it was on track to open 550 net new stores by the end of the financial year.
Alongside this the company posted a gross profit of €1.1bn (£0.95bn) up from €973m (£838m) and a profit after tax of €81m (£70m), down from €95m (£82m).
Trevor Masters, CEO of Pepco Group, said: “The group continued to make strong progress against our strategic objectives over the half year, while delivering an increase in revenues and underlying EBITDA. We opened 166 net new stores in the period and are confident on meeting our target of at least 550 net new stores this financial year, as part of our targeted and profitable opening programme.
“Our growth strategy in Western Europe is progressing well, reflecting the strong appeal of the Pepco brand to customers across the whole continent. Italy, where we recently opened our 100th store, and Spain – which is benefiting from our combined clothing, general merchandise and FMCG offer – continue to be our largest and fastest-growing Western European territories.”
