Dealz-Poundland discount owner sees mitigating price inflation as profits soar 46%

Dealz operates around 100 stores in the Republic and has 30 Poundlands in the North.

Profits at the owner of Dealz and Poundland discount in Ireland and Pepco across the rest of the continent have soared 46% and said it's confident that it can offset the recent spike in commodity costs.                  

Pepco Group — whose shares are traded in Warsaw to reflect its major presence in Poland where it has over 1,000 stores — posted earnings of €647m for the 12 months to the end of September as revenues rose over 19% to €4.1bn.

It has more than 3,500 stores in 17 countries and employs 40,000 people and has opened 483 new stores. Dealz operates around 100 stores in the Republic and has 30 Poundlands in the North.

Pepco now plans to drive its launch plans in Germany and step up its expansion in Italy, Spain, and Austria. The group said it continued to face commodity inflation and higher shipping costs alongside supply chain disruption. But it said it could mitigate the impact.

It said it was monitoring the emerging new wave of Covid cases across Europe that had resulted in new government-mandated restrictions in some of its operating territories.  Its shares traded almost 2% lower to value the company at €6bn in Warsaw, which compares with the €5bn value at its stock market debut.                       

"Based on our understanding of the current level of Covid impact on revenue and costs we are confident in delivering full-year profit growth in line with historic levels," the company said.