Pepco’s first-half profit drops by 16% due to Covid impact
LONDON (UK) – Pepco Group, which owns British discount retailer Poundland, reported on Tuesday a 16.3% fall in first-half profit to 89 million euros (£80 million). This is blamed on dent to sales due to coronavirus.
Pepco, which also owns the PEPCO and Dealz brands in Europe and is part of South African conglomerate Steinhoff, said revenue rose 9.7% in the six months to March.
The group, which owns 2,844 stores, said revenue had returned to pre-Covid levels with 99% of 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 euros 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.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field