Pepco Group annual profit jumps 14.3% on store expansion

LONDON (Reuters) - Pepco Group, owner of European discount retailer brands PEPCO, Poundland and Dealz, reported a 14.3% rise in its annual core earnings on Tuesday, helped by the opening of 516 new stores, and forecast more growth in its new financial year.

The group, which listed on the Warsaw stock market last year, said it made underlying earnings before interest, tax, depreciation and ammortization (EBITDA) of 731 million euros ($771 million) in the year to Sept. 30, up from 647 million euros in 2020-21.

Revenue rose 17.4% to 4.82 billion euros, with like-for-like sales up 5.2%.

The group said it was on track to meet guidance for 2022-23 of EBITDA growth in the mid-teens, assuming constant foreign exchange rates and absence of any further significant deterioration in the macro environment.

In October, Pepco said it would accelerate its expansion in 2022-23, opening at least a net 550 stores, including taking the PEPCO brand into Greece and Portugal.

It ended its 2021-22 financial year with 3,961 stores.

($1 = 0.9480 euros)

(Reporting by James Davey; Editing by Rashmi Aich)