Pepco Group has posted record full-year sales growth but said performance was “mixed” against a challenging backdrop.
The Poundland owner saw group revenue rise by 17.7% to a record £4,876m on a constant currency basis for the year ending September 30, 2023, driven by Pepco growth of 24.8% and Poundland growth of 8.4%.
While the group’s fourth quarter revenue rose by 12.5% year-on-year, group like-for-like revenues in the period were flat, but up 6% in the full year.
However, Pepco like-for-likes in the quarter declined by 2.4% after turning negative in August and worsening in September.
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Pepco Group chief executive Andy Bond said: “Group performance over the past year has been mixed against a challenging market backdrop. We opened a record number of new stores and delivered strong double-digit revenue growth resulting in record group revenues. We will deliver profit growth year-on-year and our highest-ever EBITDA outturn of approximately €750 million.
“As first announced on 12 September, the trading environment deteriorated significantly in the last quarter across Pepco’s markets, notably in Central and Eastern Europe, with weaker sales, a lower than forecast gross margin and higher costs, resulting in a reduced level of profitability in our core markets, which we are addressing.”
Last month Pepco reshuffled its management team, placing Poundland boss Barry Williams at the helm, after issuing its second profit warning in three weeks.
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