Pepco's half-year results impress again as store openings rocket
European value retail giant Pepco Group said Thursday that half-year trading results were “encouraging”. And while for the huge-but-still-growing retailer, the word “encouraging” may suggest it was an average period, it was still one that many peers would envy.
It saw 22.8% year-on-year revenue growth to €2.84 billion, driven by strong Pepco brand growth of 36.9%.
Its key expansion programme for the period continued apace with 166 store openings for the six months to 31 March. For the first time, the number of new store openings in Western Europe outweighed Central Europe openings for the first time across Q2, it noted.
The group, which owns the Pepco and Dealz brands in Europe and Poundland in the UK, saw like-for-like (LFL) revenues jumping 11.1% in H1, with Q2 LFLs up 8.5%, ensuring its value offer continues to appeal to cash-strapped shoppers. Poundland Group LFL rose 4.9% in H1 and by 5.7% in Q2
Meanwhile, the group said the business remains on track to deliver full year EBITDA growth in line with guidance.
It’s a shame that the company didn’t call out the performance of its Pep&Co fashion or of the expanding beauty ops. But as it’s widening distribution for both in its stores internationally, it’s clear that these were a key part of its growth story for the half-year.
Group CEO Trevor Masters added: “Demand for our products remains strong, and double-digit like-for-like revenue growth demonstrates solid progress for the group. We have continued to deliver against our strategic priorities, including the successful store refit strategy and profitable store expansion programme – our biggest source of value creation.
“While the consumer environment remains challenging due to inflationary pressures, our strategy of price leadership gives us continued conviction in our ability to win customers and market share, which we have grown in our key markets over the last quarter.”
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