Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Pepco Group reported a 4.3% rise in first-quarter revenues to €1.4bn (£1.21bn) on a constant currency basis.
The group attributed this growth to solid trading at its Pepco brand, despite weaker performance at Dealz and the impact of exiting fast-moving consumer goods (FMCG).
In the three months to 31 December 2025, group like-for-like revenues, excluding FMCG, also increased by 3.3% during the period.
The Pepco brand delivered like-for-like revenue growth of 4.2% excluding FMCG, with the group pointing to a particularly strong performance in December despite an intensely promotional retail environment.
Growth was driven by higher volumes and continued focus on price leadership, with positive like-for-like growth reported in key markets including Poland, Iberia and Italy.
By contrast, Dealz saw like-for-like revenues fall by 7.7% during the quarter. The business was affected by operational disruption in October and November following its replatforming after the sale of Poundland, although Pepco Group said performance recovered materially in December.
The group continues to progress plans to divest Dealz, with a targeted completion in 2026.
Group gross margin increased by 360 basis points year on year to 49.4%, in line with the final quarter of the 2025 financial year, despite ongoing price investment at Pepco.
The group operated 4,410 stores at the end of the quarter, having opened 51 net new Pepco stores during the period.
These included 37 openings across central and eastern Europe and 14 in western Europe. No new Dealz stores were opened.
Looking ahead, Pepco Group said its outlook for the year remained unchanged. It continues to expect full-year revenue growth of between 6% and 8%, with the exit from FMCG expected to reduce growth by around two percentage points in the year, particularly in the first half.
The group also reiterated its guidance for underlying EBITDA growth of at least 9% in FY26 and said it expects underlying net earnings to rise by more than 25% year on year.
Stephan Borchert, chief executive of Pepco Group, said: “I’m especially pleased with our strong December trading, against intensifying promotional activity across our key territories. The group also delivered a significant year-on-year increase in gross margin, despite disciplined price investment. Consumer confidence remained subdued in some markets but said Pepco’s value proposition continued to resonate with customers.”
