European discount retailer New Pepco Group has reported a record revenue of €1.1bn ($1.28bn) during the third quarter (Q3) of FY25 – a 7.7% rise in constant currency terms.
After finalising the sale of Poundland on 12 June 2025, the subsequent report concentrates on the activities and performance of New Pepco Group, which comprises Pepco and Dealz Poland.
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This performance marks a continuation of the New Pepco Group’s positive trajectory, with like-for-like (LFL) revenues up 2.6%.
Pepco Group CEO Stephan Borchert stated:“Our results in Q3 reflect our continued strategic execution across New Pepco Group and actions we have taken to drive more consistent performance. The Pepco brand delivered a strong performance in the third quarter, registering record revenue of over €1bn, a third consecutive quarter of like-for-like sales growth and a further uplift in gross margin.”
Pepco saw a 2.4% rise in like-for-like revenues, marking its third consecutive quarter of growth. The increase was driven by a combination of strategic initiatives, including improved product availability, a sharper pricing strategy and enhanced product ranges.
In line with the strategy outlined during the Capital Markets Day, Pepco intends to exit the fast-moving consumer goods (FMCG) sector by the end of FY25. Excluding FMCG sales, Pepco’s LFL performance in Q3 saw a robust increase of 4.8%.
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By GlobalDataDealz also reported LFL sales rise of 5.8%, spurred by positive demand in food and general merchandise.
New Pepco Group’s gross margin improved by 180 basis points year-on-year in Q3 FY25.
The group expanded its store network with 45 new Pepco and Dealz stores, primarily in the Central and Eastern Europe region, bringing the total to 4,276 stores at the end of the quarter.
Pepco Group chief executive officer Stephan Borchert said: “Our results in Q3 reflect our continued strategic execution across New Pepco Group and actions we have taken to drive more consistent performance.”
“Having completed the sale of Poundland in June 2025, New Pepco Group now has a simpler structure and we look forward with confidence to capitalising on the numerous growth opportunities for the Pepco brand, as part of our ambition to become one of Europe’s most successful discount retailers.”
The group anticipates continued strong performance from both Pepco and Dealz, in line with their objectives.
Pepco is expected to see high single-digit year-on-year growth in revenues and underlying earnings before interest, taxation, depreciation and amorisation (EBITDA) (International Financial Reporting Standard [IFRS] 16) for FY25, while Dealz is projected to achieve an EBITDA (IFRS 16) of €30m.
The group also plans to open 250 net new stores during FY25.
