Eurocash Reports 7.6% Sales Decline in Q1 Amid Economic Challenges
GDANSK (Reuters) -Polish supermarket chain Eurocash reported on Thursday a 7.6% year-on-year decline in consolidated sales to 6.87 billion zlotys ($1.82 billion) in the first quarter of 2025, attributing the drop to the country's economic slowdown, reduced consumer purchasing power, and rising operational costs.
WHY IT'S IMPORTANT
Eurocash is Poland's third-largest supermarket chain. As of May, the group had a market capitalisation of 1.58 billion zlotys, while its main competitors Zabka and Dino Polska were valued at 22.01 billion zlotys and 54.0 billion zlotys, respectively.
BY THE NUMBERS
Eurocash's consolidated earnings before taxes, depreciation and amortisation (EBITDA) in the first quarter fell 11% to 121.1 million zlotys, while its gross profit margin increased by 0.6 percentage points to 13.7%.
The Group posted a net loss of 85.5 million zlotys.
CONTEXT
In February, Eurocash said it would invest 40 million zlotys in its ABC, Groszek and Euro Sklep shop networks, aiming to modernize 4,000 shops by the end of 2025.
Eurocash plans to continue investing in the Duzy Ben and Frisco concepts despite potential short-term negative impacts, aiming to ensure long-term growth and gradually achieve profitability.
($1 = 3.8259 zlotys)
(Reporting by Marta Maciag; Editing by Sonali Paul)
