Pepco lifts full-year profit forecast as it closes strong fourth quarter

By Reuters News
A stage prepared for an opening ceremony inside a new Pepco distribution center in Barniewice near Gdansk, Poland, September 17, 2026. REUTERS/Marta Maciag

GDANSK, Poland, Sept 29 (Reuters) - European discount retailer Pepco Group PCOP.WA raised its full-year net profit forecast and announced a new €400 million ($454 million) share buyback programme on Tuesday, citing a strong end to a "transformational year" in a pre-close statement.

The Warsaw-listed company now expects its underlying net profit growth to exceed 60% in the financial year that ends on Thursday, up from the earlier guidance of more than 50% growth. It also sees full-year revenue exceeding €4.5 billion, at the top of its 6% to 8% growth forecast range.

"FY26 has been a defining year for Pepco Group ... I am confident in our ability to keep converting that momentum into profitable growth in the years ahead," CEO Stephan Borchert said in a statement.

The outlook was lifted after a strong fourth quarter, where like-for-like revenue excluding fast-moving consumer goods grew 9.5% by September 20, its best performance since the strategic revamp that included last year's sale of the struggling Poundland business in Britain.

In July, it also closed the sale of Dealz Poland, completing its exit from fast-moving consumer goods to focus on its higher-margin core business, the Pepco discount chain.

Pepco said strong trading was boosted by the planned clearance of older-season inventory, which supported growth but had a one-off impact on its gross margin in the final quarter.

The retailer confirmed other parts of the guidance raised in July, expecting a gross margin of about 51% and mid-teens percentage growth in underlying earnings before interest, taxes, depreciation and amortisation.

($1 = €0.8806)

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