Poundland Owner Pepco Sees Profit Down 16% On COVID Impact
Pepco Group, the owner of British discount retailer Poundland, reported a 16.3% fall in first-half profit to €89 million, hurt by the dent to sales from COVID-19.
The retailer, which also owns the PEPCO and Dealz brands in Europe and is part of troubled South African conglomerate Steinhoff, said revenue rose 9.7% in the six months to March, having been up 14.4% in the five months to February.
Pepco, which trades from 2,844 stores, said revenue had returned to pre-COVID levels with 99% of group stores now trading, although like-for-like sales remained negative.
It said its financial position was strong with positive cash resources in excess of €400 million at June 13.
"Looking forward, the consumer outlook remains uncertain and our plans reflect our expectation of a 'new normal' trading environment once we all emerge from the COVID virus," said Chief Executive Andy Bond.
"However, it is likely that consumer demand for discount retailing will increase in a period of prolonged economic uncertainty and we are extremely well placed to take advantage of this trend."
Bond said in February it was "almost inevitable" Pepco would be sold by Steinhoff.