// Poundland owner Pepco Group is set to accelerate its store expansion plan after posting an increase in profits
// The year to the end of September was one of “continued strong strategic progress” driving profitable growth for the group
Poundland owner Pepco Group has reported a 14.3% rise in annual core earnings, helped by the opening of 516 new stores, and forecast more growth in its new financial year.
The value group, which also owns Dealz will accelerate its store rollout strategy as it looks to entice cash-strapped shoppers, after posting a rise in profit.
Revenue rose 17.4% to €4.82 billion, with like-for-like sales up 5.2%.
The discount retailer said it was taking an increased focus on new stores in Western Europe and a refit programme in Central and Eastern Europe.
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“Macro-economic conditions continue to be challenging, driven by inflationary pressures, but the group continues to outperform the wider market,” Pepco said, noting it was benefiting from economies of scale with suppliers due to its size.
“We are driven by maintaining and improving our price leadership position through which we can grow our market share,” it said.
In October Pepco outlined plans to accelerate its expansion in 2022-23, opening at least a net 550 stores, including taking the Pepco brand into Greece and Portugal.
The group said it had seen a strong start to its new financial year and was on track to meet guidance for 2022-23 of EBITDA growth in the mid-teens, assuming constant foreign exchange rates and the absence of any further significant deterioration in the macro environment.
It forecast revenue growth in the mid to high teens, driven by the new store openings, store refurbishments and like-for-like sales growth from the existing store estate.
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