Pepco revenues rise, highlighting the impact of 'global disruption'
Pepco Group has reported its results for the second quarter and first half of the financial year, ending 31 March 2022, highlighting the impact of "global disruption" from COVID-19 and the Ukraine war.
Pepco Group owns the discount retailers PEPCO and Dealz in Europe and Poundland in the UK, as well as the clothing brand Pep&Co.
Results for the six months ending 31 March 2022:
- Unaudited revenues reached £1.98 billion, an increase of 17.5% year on year led by PEPCO delivering 28.9% growth.
- Unaudited underlying EBITDA is anticipated to be within range of £286 million to £293 million (€342m to €350m).
The group highlighted that the EBITDA results meet the group's guidance for the full year "in the absence of any further significant deterioration in the macro environment."
The group added that it had invested into expanding its physical retail network, opening a net total of 235 new stores, excluding the closure of 43 Fulton Food stores following Poundland's acquisition. Another 586 group stores were refurbished, with upgrades made to layouts and environments to enhance consumer experiences.
Commenting on the results, Trevor Masters, Interim CEO Pepco Group, said: “We are very pleased with this set of results, considering the global disruption faced by our business. Whilst the impact of COVID-19 progressively eased over the second quarter, the invasion of Ukraine, a country which borders three of our largest operating territories, created further volatility and unpredictability.
"The market within which we operate is likely to remain volatile in the near term, due to the situation in Ukraine and ongoing global inflationary pressures. However, we have a clear and successful strategy to deliver on our sizeable long-term growth opportunities."
Masters also highlighted the Group's relief efforts in Ukraine and its donations to two charities and support for its employees.