Pepco Group’s fourth-quarter like-for-like sales fell year on year due to ongoing supply chain disruption.
For the 51 weeks ending September 22, the Poundland and Dealz owner saw total revenue rise 10%, driven by new store openings, but like-for-like dipped 3.1%.
Disruption to shipping through the Suez Canal, due to attacks militants in the Red Sea, has continued through 2024.
“Pepco has continued to be impacted by supply chain issues, affecting the consistent and timely availability of stock in stores,” the group said.
Despite the setbacks, the discount giant remains optimistic about its performance, forecasting an underlying EBITDA of at least €900m (£787m) for the current financial year, a 20% year-on-year increase.
Sales are expected to surpass €6bn (£5.3bn), driven by a strong store expansion strategy that includes the opening of 64 new stores in the fourth quarter.
The group anticipates finishing the year with a net increase of 390 stores, in line with previous guidance.
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Pepco Group executive chair Andy Bond 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, with further opportunities for continued improvement.
“Group like-for like revenues in the fourth quarter remained lower than the prior year, partly related to ongoing supply chain disruption, nevertheless, we expect to deliver record revenue and underlying EBITDA in FY24, driven by significant improvements in gross margin year-on-year.”
“While there is much more to do, particularly around like-for-like sales progress, we remain committed to expanding our price leadership position, enhancing the core customer proposition and improving our supply chain capabilities.”
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