Pepco Group said on Thursday its fourth-quarter underlying revenue was lower than the prior year, partly reflecting ongoing supply chain disruptions.
The European discount retailer said that while total revenue for its fiscal year to date – the 51 weeks to 22 September – was up 10% thanks to new store openings, it’s like-for-like revenue was down 3.1%.
The Warsaw-listed owner of Pepco, Dealz and Poundland did not give a figure for the fourth quarter.
Shipping Disruptions
Disruption to shipping through the Suez Canal, due to attacks by Iran-aligned Yemeni Houthi militants in the Red Sea, has continued through 2024.
The discounter said, “Pepco has continued to be impacted by supply chain issues, affecting the consistent and timely availability of stock in stores.”
It added that it was taking mitigating actions, including shipping products earlier, optimising shipping routes and selectively using faster carrier options.
Pepco expects these steps to improve availability during the first half of its 2024/25 year.
Performance
The group said trading in Poundland and Dealz had largely followed the trends of previous updates, with performance affected by the transition of Pepco-sourced clothing and general merchandise.
For 2023/24, the group forecast underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of “at least” €900 million, 20% higher than the previous year.
The outcome reflected full-year revenue in excess of €6 billion and improvements in gross margin.
The executive chair of Pepco Andy Bond said, “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.”
