Poland's Eurocash says it might not reach 2025 targets
14/11/2024 07:12
GDANSK, Nov 14 (Reuters) - Polish food retailer Eurocash
EUR.WA might not be able to meet its financial targets for
2025, given the challenging market trends and its updated
operational plans, it said on Thursday.
Particularly at risk are its core profit (EBITDA) target of
1 billion zlotys ($243.1 million) and the revenue goal for its
Frisco brand, also at 1 billion zlotys, published in 2022 as
part of its 2025 strategy, Eurocash said in a statement.
The management board will not publish separate annual
forecasts for 2025, the retailer added.
The group highlighted that it had reached the strategic net
debt to EBITDA ratio target of 0.85 by the third quarter of this
year, while improved cost efficiency helped it offset the impact
of Poland's minimum wage increase on profitability.
Eurocash's third-quarter EBITDA fell 20% on the year to
243.8 million zlotys, while its revenue declined 1% to 8.49
billion zlotys, hit by negative macroeconomic factors and low
retail sales in particular.
Quarterly net profit was 3 million zlotys, reversing a loss
of 91 million zlotys in the same period last year.
($1 = 4.1139 zlotys)
(Reporting by Marta Maciag; editing by Milla Nissi)
((Marta.Maciag@thomsonreuters.com;))