Pepco Group, the parent company of discount retailers, anticipates surpassing record revenue levels this year.
- Despite a dip in like-for-like revenue, Pepco forecasts a 10% rise in total revenue for the full year.
- Underlying EBITDA is predicted to increase by approximately 20%, reaching at least €900m.
- The company plans to open 390 new stores by the end of the calendar year, enhancing its market presence.
- Chairman Andy Bond highlighted ongoing supply chain disruptions as a key challenge affecting revenue.
Pepco Group, which owns well-known discount retailers, is expecting to achieve a significant milestone by the end of the financial year. The company has forecast that its revenues for the year ending 22 September 2024 will exceed €6 billion (£5 billion), marking a substantial 10% increase compared to the previous year. This notable growth is anticipated despite a reported decline of 3.1% in like-for-like revenue.
In its recent trading update, released on 26 September, the group announced its expectation to report an underlying EBITDA of at least €900 million (£750 million). This figure represents an approximate 20% increase from the previous financial year, indicating robust financial health and operational efficiency.
Expanding its geographical footprint, Pepco Group aims to establish 390 new outlets by the end of the year, with 64 openings in the fourth quarter alone. This aggressive expansion strategy underscores the company’s commitment to increasing its market share and accessibility for consumers.
Executive chair Andy Bond attributed the decline in like-for-like revenue to disruptions in the supply chain. He emphasised the company’s dedication to improving its supply chain capabilities while maintaining its price leadership and enhancing the customer experience. Bond remarked, ‘While there is much more to do, particularly around like-for-like sales progress, we remain committed to expanding our price leadership position’.
The group remains optimistic about its strategic directions and plans to reveal its preliminary financial results for the 12 months leading up to 30 September 2024 on 10 December 2024. These strategic plans are expected to further cement Pepco’s position as a leader in the retail sector.
Pepco Group’s strategic initiatives and robust expansion plans position it well for continued growth into the next financial year.
