Pepco rises in Warsaw on trading statement, share buyback

Pepco rises in Warsaw on trading statement, share buyback

Pepco Group, the Warsaw-listed discount retailer, reported record-high third-quarter revenue and launched a share buyback programme of up to 50 million euros ($58.68 million) on Thursday, July 2, 2025. The announcement follows the company's first results after the sale of Poundland.

The company's revenue rose 7.7% year-on-year at constant currency to 1.1 billion euros in the third quarter that ended on June 30, 2025. Like-for-like sales grew 2.6%, driven by growth in both the Pepco and Dealz brands. CEO Stephan Borchert stated, "Our results in Q3 reflect our continued strategic execution across the New Pepco Group and actions we have taken to drive more consistent performance" [2].

The sale of Poundland, which was heavily reliant on low-margin fast-moving consumer goods, allowed Pepco to focus on its main brand, which sells higher-margin clothing and general merchandise mainly in Central and Eastern Europe. The divestment was in line with Pepco's strategic plan to move away from fast-moving consumer goods [2].

Pepco announced that it would launch the buyback programme, aimed at reducing its capital and meeting obligations under equity incentive plans, on or around July 17. The maximum price to be paid for the share repurchases is 110% of the market price of the ordinary shares, with the current share price undervaluing the group's future prospects [2].

The share buyback programme is a significant move for Pepco, demonstrating its commitment to shareholder value and strategic focus. Investors reacted positively to the news, with Pepco's shares rising in Warsaw on the trading statement.

References:
[1] https://www.tradingview.com/news/reuters.com,2025-07-08:newsml_GNE5GzfN0:0-reg-transactions-in-connection-with-share-buyback-programme/
[2] https://www.marketscreener.com/quote/stock/PEPCO-GROUP-N-V-124599014/news/Pepco-posts-higher-Q3-revenue-launches-buyback-of-up-to-50-million-euros-50474651/