Poundland owner reports record revenue despite pre-tax profit decline

Poundland has reported overall growth of 8.4 per cent for the full year ended 30 September in its full year ended 30 September.

Overall revenue at the retailer's parent company Pepco Group rose by 24.8 per cent with the group reporting record full year revenue of around €5.4 billion – a rise of around 17 per cent on 2022 – stating that Poundland growth had been a key driver.

However, pre-tax profits for the group, reported at €147 million, declined by around 35 per cent compared with the previous year.

Pepco attributed the profit drop to investment in stores, expansion and related supply chain costs, alongside higher inflation and higher interest costs.

“Despite a challenging market backdrop, we delivered another year of strategic progress and record sales of €5.64 billion, against a strong prior year comparative,” said executive chair of Pepco Group Andy Bond. “We opened a record number of 668 net new stores, primarily with the Pepco brand in Central and Eastern Europe, but also in Western Europe, with new store openings in the region approaching half of the total introduced – amid encouraging progress into Western Europe in countries such as Spain and Italy.”

However, Bond also went on to note that overall group performance was mixed with a “disappointing profit outturn”.

“We are acting decisively to address this, reaffirming our strategy to deliver more measured growth – doing less, to achieve more – with a greater focus on improving profitability and cash generation,” he said. “This includes a more targeted approach to new store openings in existing markets, and our renewed focus on transitioning into one single business through a unified customer offer and sourcing strategy, helping us drive enhanced cost and operational efficiency.”

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