Pepco Group, the European budget-focused retailer, has proven its resilience and ability to adapt in the face of pandemic-related challenges. Despite the difficult trading environment brought about by Covid-19, the company has reported strong financial results and is confident in exceeding market expectations.

For the year that ended on September 30, Pepco Group saw a noteworthy increase in group revenue, reaching €4.122 billion, which is a growth of 19.4%. The Pepco chain experienced the highest growth rate, with an impressive increase of 29.2%.

Notably, the company also achieved significant like-for-like (LFL) growth, with an overall increase of 6.5%. The Pepco chain specifically recorded remarkable LFL growth of 9.8% for the year and 10.2% for the fourth quarter. However, Poundland and Dealz witnessed slightly lower LFL growth, with 3.1% for the year and 1% for the fourth quarter.

Looking ahead, Pepco Group is optimistic about its future financial performance. It expects to achieve underlying EBITDA between €640 million and €655 million for the full year, indicating a growth of approximately 45% compared to the previous year, which was heavily impacted by the pandemic.

The company has been consistently focusing on strategic expansion and has successfully opened 424 net new stores during the year. Out of these, 364 were Pepco stores, marking a 17.3% increase, and 60 were Poundland and Dealz stores, showing a 6.5% increase.

Andy Bond, the Group CEO, expressed satisfaction with the company’s performance and the progress made towards its strategic plans. Despite the challenges posed by the pandemic, Pepco Group managed to achieve a record number of store openings throughout the year. Bond also highlighted the positive initial performance of Pepco stores in Western European markets such as Italy, Austria, and Spain, as well as the success of the store renewal program in driving the company’s like-for-like performance and improving the overall customer experience.

However, Bond acknowledged that there has been increased pressure on global supply chains as consumer demand and business activity recover. The reduced availability of raw materials has led to commodity inflation, further worsened by constraints on container capacity, resulting in significant increases in shipping costs in the final quarter. Nevertheless, Pepco Group has implemented operational measures to mitigate the impact of these challenges.

Overall, Pepco Group’s strong financial results and strategic progress showcase its ability to thrive in difficult circumstances. With its focus on expansion and adaptability, the company is well-positioned for future success.

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