Poland's Eurocash slumps as competitive pressures hit Q3 results

Eurocash SA

14/11/2024 10:42

** Shares in Eurocash  EUR.WA  slump almost 10%, lowest
since February 2009, after the Polish retailer reported Q3
results below market expectations and warned it may not reach
its 2025 financial targets
    ** While Eurocash's third-quarter revenue declined 1% to
8.49 billion zlotys, hit by negative macroeconomic factors and
low retail sales, its EBITDA fell 20% year-on-year to 243.8
million zlotys
    ** Grzegorz Kujawski from Trigon DM says that Eurocash Q3
results disappointed the market 
    ** "We see that competitive pressures are affecting Eurocash
more than close competitors, which can be seen, among other
things, in a deeper decline in gross compared with Biedronka
results," Kujawski points out
    ** "We believe there is potential to revise our forecasts
downward, particularly in terms of wholesale and retail
revenues, as well as gross margin," he adds
    ** Eurocash sits at the bottom of Polish mWIG40  .mWIG40 
index, comprising 40 medium size companies listed at Warsaw
Stock Exchange main list

 (Reporting by Marta Maciag)
 ((Marta.Maciag@thomsonreuters.com))