Poundland owner Pepco sees sales rise as it continues store expansion

Pepco Group, the owner of Poundland and Pep&Co, has reported a 19.7% increase in revenue to £2.4 billion (€2.8 billion) for the first half ending 31 March 2023, reflecting its investment in stores. 

Like-for-like sales grew 11.1% across the group, with Pepco sales up 15.8% and Poundland up 4.9% in the six months.

For H1, Pepco Group also shared the following results:

• Gross profit up 16.9% to £947 million (€1.1 billion).
• Gross margin down 0.9 pp to 40.1%.
• Underlying EBITDA up 8.6% to £324 million (€377 million).
• Net debt was £329 million (€383 million).

The group's store footprint increased 12% year-on-year to 4127, driven by growth of Pepco in Western Europe. It is also on track to open at least 550 new stores during current financial year.

Trevor Masters, CEO of Pepco Group, said: “The group continued to make strong progress against our strategic objectives over the half year, while delivering an increase in revenues and underlying EBITDA.

"We opened 166 net new stores in the period and are confident on meeting our target of at least 550 net new stores this financial year, as part of our targeted and profitable opening programme.

“We remain well positioned and in the second half will see gross margins trending upwards, as we benefit from the tailwinds on certain input costs, including commodity and freight.

"We are focused on executing our strategy and remain on track to deliver full year EBITDA growth in line with previous guidance."