Pepco Group breaks through adversity with solid growth amid supply chain crisis

Pepco Group suffered a year-over-year decline in same-store sales in the fourth quarter due to ongoing supply chain disruptions. However, this challenge has not stopped Pepco Group and its subsidiaries Poundland and Dealz from growing.

In the 51 weeks to September 22, Poundland and Dealz achieved a 10% increase in total owner revenues, thanks to new store openings, despite a 3.1% decline in same-store sales. However, supply chain issues continue to plague the group, notably the ongoing disruption to shipping through the Suez Canal.

This impact extends even to 2024.

In response, the group said, “Pepco continues to be impacted by supply chain issues, with challenges to the continued, timely availability of store inventory.”

Despite these setbacks, Pepco Group remains optimistic about its performance. The group is forecasting underlying earnings before interest, tax, depreciation and amortization (EBITDA) for the current financial year to reach at least €900m (£787m), up 20% year-on-year. This growth is expected to be driven by.

significant year-on-year improvement in gross margins.

Group sales are expected to reach more than €6 billion (£5.3 billion) thanks to a strong store expansion strategy, including 64 new stores opened in the fourth quarter. The Group expects net store additions for the year to reach 390, in line with previous forecasts.

        Commenting on this, Andy Bond, Executive Chairman of Pepco Group, said, “I am pleased with the positive progress we have made this year, particularly in rebuilding profitability in our core Pepco business in Central and Eastern Europe, where we continue to have opportunities for further improvement. Whilst Group same store revenue in the fourth quarter remained below the same period last year, partly due to continued supply chain disruptions, we are confident of delivering record revenues and underlying EBITDA in Fiscal Year 2024 (FY24).Going forward, we remain committed to expanding our price leadership position, enhancing our core customer value proposition and working to improve our supply chain capabilities.”

Our company is committed to delivering goods on time, in quality and quantity, and has gained the satisfaction and recognition of various customers around the globe. We are not ceasing to develop new kitchen storageand bathroom storage products every year to satisfy different customers' needs and create every cozy home together. We are looking forward to cooperating with Pepco to produce more quality products.