Pepco Group expects its fiscal year revenue to surpass a “record” €6bn (£5bn) despite some challenges.
- A significant growth of 10% in overall revenue is anticipated, contrasting a 3.1% decline in like-for-like sales.
- Underlying EBITDA for 51 weeks is expected to reach at least €900m (£750m), marking a 20% increase from the previous year.
- The group plans to conclude the year with 390 additional stores, reflecting considerable expansion.
- Executive chair Andy Bond highlights ongoing efforts to improve supply chain and customer propositions.
Pepco Group, the owner of discount retailers Poundland, Dealz, and Pepco, has announced expectations of a record-breaking revenue of over €6bn (£5bn) by the end of the fiscal year on 22 September 2024. This projected figure represents a 10% increase year-on-year, emphasising the company’s growth despite certain obstacles.
Although Pepco Group reports a notable rise in overall revenue, it simultaneously faces a 3.1% decrease in like-for-like revenue. This decline is attributed to ongoing supply chain disruptions, as mentioned by their executive chair, Andy Bond, in a recent trading update.
In terms of profitability, Pepco Group predicts an underlying EBITDA of “at least” €900m (£750m) for the 51-week period, an improvement of approximately 20% compared to the prior year. This indicates strong financial performance amidst market challenges.
Furthermore, the group has demonstrated expansive growth with the establishment of 390 new stores by year-end, a quarter of which were inaugurated during the fourth quarter. This expansion aligns with the company’s strategic plan to enhance its market presence.
Andy Bond, transitioning to a non-executive chair on 1 October, has expressed the company’s commitment to advancing its operations. He emphasised the importance of strengthening the core customer proposition and improving supply chain capabilities.
Pepco Group’s preliminary results for the 12 months ending 30 September 2024 are expected to be published on 10 December 2024, which will provide further insights into the company’s annual performance and strategic direction.
Pepco Group remains optimistic about its strategic initiatives despite facing supply chain challenges, forecasting continued growth in the coming year.
