// Pepco Group said customers are scaling back on essential items due to cost-of-living
// Pepco reported a 7.3% rise in first-half core earnings, driven by new store openings
Poundland owner Pepco Group has said the cost-of-living crisis means customers are scaling back on essential items.
“The cost-of-living crisis has impacted customers’ disposable income as they scale back even on essential purchases in the short term,” Pepco said.
The group said a focus on reducing the costs of doing business meant it was able to offset some of its input inflation.
READ MORE: Poundland owner Pepco to ‘protect prices’ as first-half sales rise
Pepco said the war in Ukraine, a country which borders three of its largest operating territories, continued to create volatility.
The conflict was also exacerbating existing supply chain disruption and inflationary headwinds.
Pepco reported a 7.3% rise in first-half core earnings, driven by new store openings.
It made underlying earnings before EBITDA of £297 million for the six months ended March 31, in line with the company’s guidance.
Revenue rose 18.9% to £2.03 billion opened a net 192 stores, taking the total to 3,696 across 17 countries. Like-for-like sales rose 5.3%.
Pepco said its same store performance in its third quarter so far was above pre-COVID-19 trading levels and it remained on track to meet its full-year guidance in the absence of any further significant deterioration in the macro environment.
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