This article first appeared on GuruFocus .
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Revenue:PLN7.4 billion, up 12% year on year.
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Like-for-Like Growth:3.2% for the quarter.
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Store Expansion:12,750 stores, an increase of 1,393 stores year on year.
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Adjusted EBITDA:PLN674 million, up 13.1% year on year.
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Adjusted EBITDA Margin:Improved to 9.1%, up 0.1 percentage points.
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Net Debt to Adjusted EBITDA:1.1 times, improved by 0.4 times year on year.
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Net Loss:Adjusted net result of minus PLN51 million, an improvement of PLN26 million year on year.
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Free Cash Flow:Positive PLN28 million.
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New Store Openings:435 new stores in Poland and Romania during the quarter.
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Market Share:Increased to close to 11% at the end of the quarter.
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Interest Expenses:Declined by more than 30%, from PLN150 million to PLN104 million.
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Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Zabka Group ( STU:9M1 ) reported a 12% year-on-year increase in sales to end customers, reaching PLN7.4 billion.
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The company expanded its network significantly, operating 12,750 stores by the end of March 2026, which is 1,393 more than the previous year.
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Adjusted EBITDA increased by 13.1% year-on-year to PLN674 million, with the margin improving to 9.1%.
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Zabka Group maintained a strong balance sheet with net debt to adjusted EBITDA improving to 1.1 times.
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The company successfully launched new growth initiatives, including expanding its presence in Romania to 204 stores and introducing smart vending solutions.
Negative Points
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Adverse weather conditions in January and February negatively impacted footfall and sales.
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The company recorded a net loss for the first quarter, with an adjusted net result of minus PLN51 million.
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There is increased uncertainty due to geopolitical tensions in the Middle East, affecting consumer confidence.
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Energy price increases contributed to a slight uptick in inflation, impacting costs.
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The new growth engines, particularly in Romania, are still in the investment phase, resulting in a negative contribution of minus PLN32 million.
Q & A Highlights
Q: Can you provide more color on the main factors behind the gross margin improvement this quarter? A: Marta Wrochna-Lastowska, CFO, explained that the main drivers were efficiency gains in logistics, process improvements, and energy savings. There were also some cost phasing between quarters. The company expects the EBITDA margin for the year to remain stable at the top end of the 12%-13% range.
Q: Could you elaborate on the increase in inventory per store this quarter and whether it will reverse in the following quarters? A: Marta Wrochna-Lastowska noted that inventory movements are typical before holidays or weekends as franchisees prepare for higher sales. This is a usual practice and should not affect long-term results. There might be slight differences in growth next quarter, but overall, the company is confident in its guidance.
Q: What level of peak losses should we expect in the new growth engines segment, and when might we see a shift towards positive momentum? A: Tomasz Suchanski, CEO, stated that while they are still in the early stages in Romania, they are focused on building a profitable business. Mature stores have reached positive contribution, and although full profitability will take time, losses are not expected to materially grow.
Q: How has the increasing share of the QMS category impacted like-for-like growth, and is your pricing strategy adequate? A: Tomasz Suchanski mentioned that QMS is a strong growth driver and continues to be the fastest-growing category. The company is confident in its pricing strategy, which is sophisticated and differentiated, ensuring competitiveness despite weather impacts on foot traffic.
Q: Are there any effects in Romania from the weaker macroeconomic and political challenges? A: Tomasz Suchanski indicated that despite being the fastest-growing retailer in Romania, the business is still in a ramp-up phase. The oldest stores show strong double-digit like-for-like growth, and the company continues to improve its commercial model, suggesting strong momentum despite external challenges.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
