Pepco Group

We announced our Group Q3 FY24 results earlier today. Key highlights: - Year to date 9-month Group revenue of €4,681m with constant currency growth of 10% on last year - Q3 Group revenue of €1,481m, up 8% year-on-year on a constant currency basis - Group like-for-like revenues down 4.3% in third quarter - Strong year-on-year recovery in gross margin continued into the third quarter, driven by Pepco - Net new store openings of 326 in nine months to date (37 in Q3); the Group remains on track to open around 400 net new stores overall in FY24 - The Group maintains its previous guidance on the full year EBITDA outlook of around €900m, representing EBITDA growth of c.20% over prior year (FY23: €753m)   Andy Bond, Executive Chair of Pepco Group, said: “We have continued to execute against our strategy to deliver more measured growth – doing less, to achieve more – with a greater focus on improving profitability. The improved gross margin trajectory we flagged at the half-year results has continued strongly into the third quarter, and disciplined capital investment is driving strong cash generation.” Read the full update here: https://lnkd.in/dfytrmtB

Today, Pepco Group is pleased to welcome our new CEO, Stephan Borchert, into the business. Stephan, who is based in London, joins us as a vastly experienced executive who has worked across retail and other sectors including in fashion, beauty, pharmacy and healthcare services. From 2018 to 2022, he was CEO of GrandVision, the global leader in optical retail, operating more than 7,400 stores in 40 countries worldwide. Over the weeks ahead he will be properly introduced to the business, working closely with Andy Bond during a transition period until 1 October, when Andy will revert to the role of Non-Executive Chair. 

Our H1 FY24 interim results were announced earlier today. Key Highlights: - Record H1 Group revenue of €3.2bn, up 13.8% year-on-year - Group gross margin up 310 basis points (“bps”) to 43.1%, driven by Pepco - Record underlying Group EBITDA (IFRS16) of €487m up 28.2% - Strong operating cash flow of €182m, an increase of €99m over the last year - 289 net new stores opened in H1, of which 86 in Q2 - Group expects to deliver underlying full year FY24 EBITDA (IFRS 16) of around €900m (FY23: €753m)   Andy Bond, Executive Chair of Pepco Group, said: “Looking ahead, while consumer sentiment in some of our key markets remains challenging, we expect to deliver underlying EBITDA (IFRS16) for the full year in the region of €900 million, compared with €753 million in the previous year. We will also benefit from greater focus on disciplined capital investment, with an improvement in free cash flow generation expected in the full year. This financial strength positions us well to continue executing our growth strategy while maintaining a strong balance sheet.” Read the full update here: https://lnkd.in/dNhPZZ8U

Our Second Quarter FY24 results were announced earlier today.   Key Highlights: - H1 Group revenue of €3,200m with constant currency growth of 11% versus last year - H1 Group like-for-like (LFL) revenues down by 2.5%, but against a tough comparative period    - Strong recovery in Group gross margin has continued, driven by our Pepco brand     - 86 new store openings across the Group; we still expect to open at least 400 net new stores in FY24   Leadership Update:      - New CEO Appointment: Stephan Borchert will join as CEO from 1 July 2024. Stephan is an accomplished leader with a wealth of experience in managing diverse retail sectors including fashion, beauty, pharmacy, and healthcare services   Looking Ahead:      - Outlook: The Group remains confident in delivering profitable growth in this financial year by maintaining a strict focus on returns across all parts of the business   Read the full update here: https://lnkd.in/eBcUBKEd