Pepco Group has recorded an 8.7% increase in total revenue to €4.5 billion (£3.9 billion).

According to the business, the growth was driven by a 2.6% increase in like-for-like (LFL) and a new store expansion.

The group, which formerly owned Poundland, published its preliminary results today (3 December) for the 12 months ending 30 September 2025.

It showcased that its net earnings for the reporting period were €219 million (£192.5 million), which was an increase of 19.7%. This was despite a €38 million (£33.3 million) pre-tax International Financial Reporting Standard (IFRS) impairment charge.

Stephan Borchert, chief executive officer, said: “2025 was a real turning point for the Group. Having outlined our new strategic framework in March, the Group has executed at an exceptional pace, delivering significant progress in a short timeframe.

“The decision to refocus on Pepco and exclusively on our core categories of clothing and general merchandise has been validated by these strong results, in particular our gross margin and free cash performance, which were both ahead of expectations.”

Pepco reported underlying EBITDA grew 10.3% to €865m (£760m), a 100 basis point year-for-year gross margin improvement. It also confirmed that its financial year 2026 underlying EBITDA was expected to grow 9% year-on-year, with net earnings to surpass 25%.

It highlighted that it had returned to its “core” model of clothing and general merchandise, fully exiting FMCG within the business.

Borchert added: “Across the Group, we have a revitalised leadership team, the right strategy in place and good early momentum for Pepco. Given this, we are today upgrading our mid-term guidance for certain parameters based on increasing confidence on our outlook.

“With our ongoing strong cash generation, we are resolutely focused on driving further shareholder value, evidenced by a substantial 55% increase in our FY25 dividend and over €75m of shares we have repurchased this calendar year to date.”

Pepco opened 247 new stores in the financial year 2025, leading to a total of 4359 stores.

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