Poundland revenues and profits grew during a year in which it invested in a new online operation and in building a better in-store business.
Parent company Pepco Group today reports that Poundland Group revenues came in at €2.1bn (£1.8bn) in the year to September 30 2022. That’s 7.8% ahead of the previous year. On a like-for-like basis that strips out the effect of store openings and closures, sales were up by 2.6%. Earnings before interest, tax and one-off costs (EBITDA) rose by 9.8% to €214m (£183.4m).
During the year Poundland bought poundshop.com to allow it to broaden its online operations into a national service. It has also rolled out its “Diamond” refit programme to 342 shops as part of its plans for a “better” business.
During the year Poundland has benefited from a close focus on stock and has seen lower levels of write-offs, compared with the previous year in which Covid-19 trading restrictions hit trade. These have helped to offset higher levels of inflation.
The update came as Poundland parent company Pepco Group, which also owns Pepco and Dealz in Europe, reports full-year revenues of €4.8bn (£4.1bn) in the year to September 30 2022. That’s up by 17.4% in total, or 5.2% LFL. EBITDA came in at €731m (£626.7m), 13% higher than the previous year.
Pepco is focusing on expansion across Europe via the fast rollout of new stores as it works towards a long-term strategy of 20,000 shops – up from 3,961 as of September 30. The value retailer is focusing on attracting more affluent, mid-market shoppers through improved store environments and a range of fast-moving consumer goods (FMCG).
It is currently laying the foundations for this through new store openings in core markets such as Poland, where it currently has more than 1,160 shops.
Trevor Masters, CEO of Pepco Group, says: “Historically, we have been focused on maximising the returns at each of our operating companies to grow and serve our customers. As we turn to the next chapter of Pepco Group’s growth story, we are increasingly focused on leveraging the scale and diversity of the great business we have built in order to unlock the potential of the group as a whole, by combining the impressive strengths and capabilities of each of the brands we operate. We have made significant progress, and I look forward to pushing forward with our ambitious plans and capitalising on the attractive market opportunities ahead.”
