Poundland owner Pepco Group has posted a strong uplift in half year revenue as it continues to expand with new store openings across western Europe.
In the six months to 31 March, revenue jumped by 22.8% to €2.8 billion while underlying EBITDA rose by 11% to €377 million. However, underlying pre-tax profit fell by 5.7% to €134 million at constant currency following the group’s investment in stores and expansion and related supply chain costs.
Meanwhile like-for-like sales at Pepco and Poundland increased by 15.8% and 4.9% respectively in the period.
The group ended the period with 4,127 stores, which represented an increase of 12% year-on-year. New openings included 24 shops for Poundland, although the retailer closed 28 underperforming stores in the period as part of its long-term estate plan.
The group is on track to launch at least 550 net new stores during current financial year.
The group remains confident of its EBITDA outlook for the full year with
revenue growth in the high teens and EBITDA growth in the mid-teens, assuming constant currency rates.
