Pepco Group (PCOP.WA), a European discount retailer, established 166 new locations and saw first-half revenue rise 22.8%.
The Warsaw-listed group reported revenue of 2.84 billion euros ($3.11 billion) for the six months to March 31 on Thursday. First-half like-for-like sales rose 11.1%, and 8.5% in the second quarter.
The owner of Pepco, Poundland, and Dealz said it was on target for “mid-teens” core earnings growth.
For over a year, high inflation has outpaced salary growth in Europe.
Discounters do better in recessions because shoppers become more price sensitive and have lower cost bases.
Aldi and Lidl are Britain’s fastest-growing food retailers, while Ryanair (RYA.I) leads in air travel.
“Our strategy of price leadership gives us continued conviction in our ability to win customers and market share, which we have grown in our key markets over the last quarter,” Pepco CEO Trevor Masters said.
The group has 4,127 outlets in 19 European countries.
It expects to open at least 550 net new stores this year, including the debut of Pepco in Portugal and Bosnia and Herzegovina in the second half.
“The macro environment the group faces is more balanced now than in the past 18 months with product input costs starting to ease, though headwinds remain on other costs, including energy,” Pepco said, citing a second-half profit projection improvement.
Early trade valued Pepco at 22.9 billion zlotys or 4.92 billion euros.
