Brief: Pepco Group FY25 Underlying EBITDA At €865M

Pepco NV

17/12/2025 06:08

Dec 17 (Reuters) - Pepco Group NV PCOP.WA:

FY25 UNDERLYING EBITDA GROWTH OF 10.3% TO €865M, REFLECTING A 100 BASIS POINT Y-O-Y GROSS MARGIN IMPROVEMENT

FY25 REVENUE GROWTH OF 8.7% TO €4,523M, WITH RETURN TO POSITIVE LFL SALES OF 2.6% (EXCLUDING FMCG +4.0%)

FY25 UNDERLYING NET EARNINGS GROWTH OF 19.7% TO €219M REFLECTING FOCUS ON IMPROVING EBITDA CONVERSION

CONFIRM FY26 UNDERLYING EBITDA EXPECTED TO GROW AT LEAST 9% Y-O-Y; UNDERLYING NET EARNINGS TO EXCEED 25%

STRONG FREE CASH GENERATION OF €334M FACILITATES AN INCREASE IN DIVIDEND  PAYOUT RATIO TO 25% (FROM 20%) LEADING TO A 57% GROWTH IN FY25 DIVIDEND TO 9.6 CENTS (FY24: 6.2 CENTS), IN  ADDITION TO THE €50M SHARES REPURCHASED IN Q4 FY25 AND A SECOND TRANCHE OF €50M CURRENTLY BEING  EXECUTED

MID-TERM GUIDANCE RECONFIRMED ON REVENUE AND EBITDA, WITH UPGRADED TARGETS FOR GROSS MARGIN AND UNLEVERED FREE CASH FLOW

EXPECT AT LEAST 15% UNDERLYING NET EARNINGS CAGR

STRATEGIC RETURN TO CORE PEPCO MODEL OF CLOTHING AND GENERAL MERCHANDISE DURING FY25

PEPCO SAYS GROUP EXPECTS TO GENERATE FY26 REVENUE GROWTH OF 6% TO 8%

GROUP OPENED 247 NET NEW STORES IN FY25 (FY24: 379) LEADING TO TOTAL OF 4,359 STORES AT YEAR-END

IS TARGETING APPROXIMATELY 250 NET NEW STORES ACROSS THE GROUP IN FY26

IN FIRST FINANCIAL QUARTER-TO-DATE (1 OCT. TO 13 DEC. 2025), PEPCO LFL REVENUES WERE +3.9% EXCLUDING FMCG (LFL OF +0.3% INCLUDING FMCG)

IN Q1 TO DATE GROUP LFL REVENUES (INCLUDING DEALZ) WERE +3.0% EXCLUDING FMCG (LFL -0.3% INCLUDING FMCG)

IN Q1 TO DATE THE GROUP LFL PERFORMANCE REFLECTS A DRAG FROM DEALZ, WITH THE WEAK TRADING EXHIBITED IN Q4 FY25 CONTINUING INTO THE NEW FINANCIAL YEAR

WE EXPECT FY26 UNLEVERED FREE CASH FLOW GENERATION TO EXCEED €200M, AFTER CAPITAL EXPENDITURE AT THE TOP END OF OUR €160M TO €180M PER ANNUM MID-TERM GUIDANCE RANGE

UPDATES MID-TERM GUIDANCE, FOR THE PERIOD TO 2030 EXPECTS REVENUES TO GROW BY AT LEAST 7% CAGR (UNCHANGED), GROSS MARGIN OF AT LEAST 48.5% (PREVIOUSLY 48.0%)

FOR THE PERIOD TO 2030 EXPECTS FREE CASH GENERATION OF AT LEAST €250M PER ANNUM (PREVIOUS GUIDANCE WAS €200M)

Source text: ID:nEM2H3dPCa

Further company coverage: PCOP.WA

 (Gdansk Newsroom)

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