Pepco Group FY sales rise 8.7% following Poundland sale
As a result the group expects to generate FY26 revenue growth of 6% to 8%, with our topline being impacted by the exit of FMCG, which we estimate will impact full year revenue growth by around two percentage points in FY26
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Pepco Group has revealed that its sales rose 8.7% to €4.52bn (£3.38bn), while like-for-like sales were up 2.6%. for the 12 months ended 30 September 2025.
In this period the company completed the sale of Poundland to Gordon Brothers for £1 which it said helped to “significantly simplify the group structure”, while the opening of 247 new net stores helped to drive sales.
In March, Pepco confirmed that it was “actively exploring” a potential sale of Poundland amid rising pressures on the business, and instead plans to focus on the Pepco brand as a single future format.
The discount retail group said its “ultimate ambition” was to operate under a single Pepco format, which largely drives the group’s earnings, with a focus on its higher margin Pepco clothing and general merchandise ranges.
In its latest results, Pepco revenues rose 8.6% to €4.18bn (£3.13bn), while Dealz Poland revenues climbed 10.4% to €339m (£254m).
Alongside this, the company posted EBITDA rose 10.3% year on year to €865m (648m) and underlying net earnings increased 19.7% to €219m (£164m). This growth came despite a one-off pre-tax IFRS impairment charge of €38m (£28m).
As a result the group expects to generate FY26 revenue growth of 6% to 8%, with our topline being impacted by the exit of FMCG, which we estimate will impact full year revenue growth by around two percentage points in FY26.
CEO Stephan Borchert said: “2025 was a real turning point for the Group. Having outlined our new strategic framework in March, the group has executed at exceptional pace, delivering significant progress in a short timeframe.
“The decision to refocus on Pepco and exclusively on our core categories of clothing and general merchandise has been validated by these strong results, in particular our gross margin and free cash performance which were both ahead of expectations.
He added: “Across the Group, we have a revitalised leadership team, the right strategy in place and good early momentum for Pepco. Given this, we are today upgrading our mid-term guidance for certain parameters based on increasing confidence on our outlook.
“With our ongoing strong cash generation, we are resolutely focused on driving further shareholder value, evidenced by a substantial 55% increase in our FY25 dividend and over €75m of shares we have repurchased this calendar year to date.”
