PCO GPW WIG20 Periodic report · PAP Biznes
Pepco Group SA (PCO) · H1 2026 results and valuation
Share price: 49.25 zł · 2026-11-10
Pepco Group SA is a retail chain offering clothing and home products. It operates in the European market. Source: Wikipedia
Results H1 2026 vs H1 2025 · year over year · published 21 May 2026 and 22 May 2025
Net income turned to a profit from a loss a year earlier. The language turned more upbeat.
1 · Numbers
Turned profit
Net income vs H1 2025
Outlook given
Net income 169.4M vs -192.9M
Revenue +5.0%
Why Net income rose primarily because strong gross margin performance, driven by expansion in Pepco, was only partly offset by slightly higher operating costs.
2 · How the report reads
More upbeat
Language tone vs last period
Report language: very upbeat for a company report — more upbeat than in H1 2025.
Weak signal: formal report language, not a call.
3 · What stood out
Pepco Group NV expects to open at least 600 new stores in Western Europe between FY27-FY30, doubling its regional presence due to increased confidence in store economics.
Valuation
Is Pepco Group SA undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −2.1% growth a year (3-year revenue growth), the model's fair value is 33.35 zł a share — the stock trades 48% above it. Today's price assumes 3.6% growth a year.
Current price
49.25 zł
close of 2026-11-10
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+3.6% for 10 yrs
Fair value / share
33.35 zł
Buy below
25.01 zł
Price vs fair value
Overvalued 48%
Price vs buy-below price
Overvalued 97%
Read between the lines
-
Figure
Group underlying EBITDA (IFRS 16) rose 17.5% to €516m due to a gross margin expansion of 250bps to 49.7%.
Source quote
“Group underlying EBITDA (IFRS 16) of €516m, up +17.5%, driven by strong gross margin expansion of 250bps to 49.7%.”
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Figure
Gross margin increased by 310 basis points to 51.3% from 48.2% in the prior period due to the FMCG-exit and favorable foreign exchange.
Source quote
“FY26 gross margin was 51.3% (H1 FY25: 48.2%), up 310 bps y-o-y, driven by the FMCG-exit and favourable FX.”
-
Figure
Revenue grew by 5.0% to €2,470m on a reported basis, driven by 62 net new store openings at Pepco despite difficult market conditions.
Source quote
“While market conditions remained difficult, revenue grew by +5.0% on a reported basis to €2,470m (H1 FY25 Restated: €2,353m), and by +4.5% on a constant currency basis, driven by 62 net new store openings at Pepco.”
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Figure
Underlying EPS growth of 56.6% outpaced underlying net earnings growth because of the share buyback programme executed since July 2025.
Source quote
“Underlying EPS growth of 56.6% outpaced underlying net earnings growth, reflecting the share buyback programme executed since July 2025.”
-
Guidance
PCO aims to progressively increase the regular dividend payout ratio to 40% of underlying PAT from the current 25% over time.
2 more
-
Figure
Western Europe delivered LFL revenue growth of +13.5% excluding FMCG, which is higher than the +0.2% growth recorded when including FMCG.
Source quote
“We have continued to perform strongly in Western Europe delivering LFL revenue growth of +13.5% excluding FMCG (+0.2% including FMCG).”
-
Figure
Pepco plans to launch in North Macedonia in June 2026, marking its 19th market and expanding the company's store footprint to new territories.
Source quote
“As announced earlier this year, we plan to launch Pepco in North Macedonia in June 2026, our 19th market, as we continue to expand our store footprint to new territories.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: H1 2026. Ring: H1 2025.
Very upbeat for a company report — more upbeat than in H1 2025. Periodic reports carry legally required risk wording, so their tone moves little and is a weak signal.
Sentences that drove the tone
“The Group’s performance reflects the successful implementation to date of the transformation plan set out at the CMD in March 2025, with further strong results delivered in H1: o Pepco...”
“The increase results from the Group’s improved profitability (and in turn higher tax charge) together with a €24m balancing payment on account in Poland relating to prior years (following the...”
“LFL revenues grew by +3.6% excluding FMCG (+0.5% including FMCG) – marking six consecutive quarters of positive LFL growth - and 61 net new store openings o Group underlying EBITDA...”
Full figures
EUR · PAP Biznes report (2026-05-21), consolidated statement; H1 vs the same period a year earlier (restated); net income to parent shareholders
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | 2.47B | 2.35B | +5.0% |
| Gross profit | 1.23B | 1.11B | +10.5% |
| Operating income | 295.4M | 198.9M | +48.5% |
| Net income | 169.4M | -192.9M | Turned profit |
| EPS | 0.30 | -0.34 | Turned profit |
| P/E today 33.3 | 18.2 | 12-mo loss | — |
Topics
Topics are drawn from the full report text, not management commentary.
Most discussed now
- On an underlying basis, profit before tax increased by over 50%, to €264m (H1 FY25 Restated: €175m) as shown below.
- New Putting the customer first means prioritising two key things: 1) remaining focused on maintaining market leading prices (best demonstrated…
- The Group’s reported tax charge for continuing operations for the half was €65m, an effective tax rate (ETR) of
- €770m of committed credit facilities were signed with a syndicate of 10 relationship banks.
- Fading Underlying and reported EPS is based on the weighted average number of shares outstanding (excluding Treasury and dilutive shares)
Faded since H1 2025
- Fading Diluted earnings per share is calculated by adjusting the weighted average number of shares used for the calculation of basic...
- Fading The Group believes underlying profit, an alternative profit measure, is a valuable way in which to present business performance as...
- Fading IFRIC interpretation on accounting for SaaS costs, the Group has expensed previously capitalised costs in relation to certain SaaS…
- Fading In FY24 and FY25, the Group has announced its intention to restructure, actively exploring separation options for Poundland (including a...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Pepco Group N.V. Report on the scope of compliance with the Best Practice · EBI 1/2023
The Company does not apply 7 detailed principles contained in the Best Practice for GPW Listed Companies 2021, specifically principles 1.5., 2.11.5., 3.4., 3.7., 4.5., 4.7., and 6.3.
- Pepco Group N.V. Report on the scope of compliance with the Best Practice · EBI 2/2022
Pepco Group N.V. does not apply 9 detailed principles of the Best Practice for GPW Listed Companies 2021, including principle 1.4.2. regarding the equal pay index.
- Pepco Group N.V. Report on the scope of compliance with the Best Practice · EBI 1/2022
- Pepco Group N.V. Report on the scope of compliance with the Best Practice · EBI 2/2021
The Company does not apply 14 detailed principles contained in the Best Practice for GPW Listed Companies 2021.
- Report on the scope of the application of the WSE Best Practices · EBI 1/2021
The Company does not apply 3 recommendations (I.R.2., IV.R.3., and VI.R.1.) and 5 detailed principles (I.Z.1.3., I.Z.1.10., I.Z.1.19., IV.Z.2., and IV.Z.13.) contained in the GPW Best Practice.