Pepco sees full year results rise despite 'industry-wide challenges'

Pepco Group, the owner of Poundland and Pep&Co, has reported a 17.4% increase in revenue to £4.1 billion (€4.82 billion) for the year ending 30 September 2022.

Like-for-like sales growth increased 5.2% on a constant currency basis. Underlying EBITDA was up 14.3% on a constant currency basis to £628 million (€731 million).

The group also revealed "record" store openings, with 516 new stores and 727 renewals.

Closing net debt increased £173 million (€202 million) to £1.2 billion (€1.4 billion), driven by growth in store footprint and planned increase in inventory.

Macro-economic conditions continued to be challenging, largely due to inflationary pressures. Despite this, the group remains "confident" in its ability to continue to grow Pepco's market share and brand presence across Europe.

Looking ahead, the group expects both EBITDA and revenue growth in the mid-teens, driven by an accelerated store roll-out and its store enhancement programme.

Trevor Masters, CEO Pepco Group, said: “Despite industry-wide short-term challenges, Pepco Group delivered another year of good progress and resilient trading performance, driven by our successful and proven strategy.

“As we turn to the next chapter of Pepco Group’s growth story, we are increasingly focused on leveraging the scale and diversity of the business in order to unlock the potential of the group as a whole, by combining the impressive strengths and capabilities of each of the brands we operate.

"We have made significant progress, and I look forward to pushing forward with our ambitious plans and capitalising on the attractive market opportunities ahead.”