Poundland’s like-for-like sales rose by 9% in its latest quarter due to an improved FMCG performance, despite owner Pepco Group flagging a “challenging trading environment” in April and May.
Group sales were up 12.5% to €1.37bn (£1.17bn) on a constant currency basis as Poundland overall revenue jumped 8.6% in the quarter to June 30.
Chief executive Trevor Masters said “the macro-economic climate continues to be challenging, particularly in Central Europe, due to elevated levels of inflation” as like-for-like sales slipped 1.2% overall in the quarter.
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The group said its outlook for the full year remains unchanged, with EBITDA growth in the mid-teens on a constant currency basis.
During the period, the discount group launched 159 net new store openings as Masters said it “remains confident” on meeting its target of opening 550 net new stores this financial year.
In May, Poundland said it was continuing to seek out locations in the M25 for its new store format, following successful openings of the value retailer‘s local stores during the last six months in East Dulwich, Clapham, Swiss Cottage and Whitechapel.
Masters added: “We remain committed to supporting our customers in this challenging environment by maintaining our market leading pricing. Our focus remains on building a bigger, better, cheaper and simpler business and we are well positioned to deliver future success as inflationary pressures ease.”
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