Eurocash posts Q2 net loss, flags weak demand and rising costs

Zabka SA

28/08/2025 06:17

GDANSK, Aug 28 (Reuters) - Polish supermarket chain Eurocash EUR.WA reported a 13.5 million zloty ($3.71 million) net loss for the second quarter, citing weak demand and a shrinking wholesale market, and said it had shut 75 stores in the first half.

WHY IT'S IMPORTANT

Eurocash is Poland's third-largest supermarket chain. As of August, the group had a market capitalisation of about 1.12 billion zlotys, while its main competitors Zabka ZAB.WA and Dino Polska DNP.WA were valued at about 22.47 billion zlotys and 45.04 billion zlotys, respectively.

BY THE NUMBERS

Eurocash's sales fell 1% year-on-year to 7.89 billion zlotys in the second quarter, while its core profit (EBITDA) dropped 5% to 229.5 million zlotys.

CONTEXT

The company is navigating intense competition from rapidly expanding discount stores, which drove market growth in the first quarter while Eurocash's core wholesale market shrank by 4.1% year-on-year.

It also faces significant cost pressures, with a 10% rise in Poland's minimum wage in 2025 directly impacting its employment expenses.

To counter these headwinds, the group is integrating its wholesale operations to find cost synergies and investing in  development projects, such as the Frisco e-grocery and Duzy Ben liquor store concepts, in an effort to secure long-term growth.

($1 = 3.6405 zlotys)

 (Reporting by Marta Maciag; Editing by)

 ((Marta.Maciag@thomsonreuters.com;))