For the first time, Zabka Group S.A. has been formally assessed under the global MSCI ESG Rating framework and has received the highest possible rating – AAA – placing the company among the top 10% of retail sector companies worldwide. This assessment follows Żabka’s inclusion in the MSCI Poland Standard Index and the MSCI Global Investable Market Index in March 2025.

The MSCI ESG Rating is one of the most widely recognised global benchmarks for assessing the maturity of environmental, social, and governance (ESG) performance, covering over 17,000 issuers worldwide.

MSCI indices serve as a crucial point of reference for international institutional investors. Żabka Group’s inclusion bolsters its visibility and investment appeal across global capital markets.

‘We regard the AAA rating from MSCI ESG as a clear mandate to further strengthen our ESG practices and scale solutions that deliver lasting value – commercially, socially and environmentally. Żabka’s inclusion in the MSCI indices marked an important step in our strategy to build long-term, sustainable value for all stakeholders,’ said Tomasz Blicharski, Group Chief Strategy & Development Officer.

‘ESG is a core pillar of our growth strategy, and we apply the same discipline to sustainability targets as we do to operational and financial objectives. The Group’s clearly articulated ESG agenda continues to gain recognition among international investors – as evidenced by the strong demand for our recent issuance of the sustainability-linked bond’ - said Marta Wrochna-Łastowska, CFO of Żabka Group.

The AAA rating reflects both the Group’s maturity in managing ESG risks and the strength of its implementation across governance, social and environmental areas.

What is the MSCI ESG Rating?

The MSCI ESG Rating, developed by global analytics firm MSCI Inc.,  is one of the most widely recognised and extensively used frameworks for assessing ESG risk exposure and organisational maturity. Its methodology examines both a company’s exposure to material ESG risks based on its business profile and its ability to manage those risks through appropriate policies, controls, and operational practices.

Ratings are assigned on a seven-point scale: CCC, B, BB, BBB, A, AA and AAA. The highest rating, AAA, is awarded to industry leaders who not only demonstrate robust ESG risk management but also implement innovative and enduring solutions that help set standards across the sector. Further information on Żabka Group’s ESG initiatives can be found in the 2024 Annual Report: Raport-roczny-Zabka-Group-2024.pdf

Continuation of rapid store‐network growth, LFL sales expansion and improved operating efficiency in Poland. 

Żabka Group sustained strong sales momentum in Q1 2025, driven by further network expansion
(11,460 stores at 31 March), 6.0% LFL growth, rising digital-channel sales and continued
development in Romania. New Polish stores generated higher average daily transactions than
prior-year openings. As a result, sales to the end customer increased almost 15% YoY to PLN 6.6
billion.

The Group’s adjusted EBITDA reached PLN 596 million, up 15% YoY. The uplift reflects increased
scale and a 0.4 p.p. expansion in the core Polish EBITDA margin, allowing the Group to maintain
solid margins while investing in Romania. The Q1’25 adjusted EBITDA margin remained at 9% in
the quarter, broadly unchanged YoY.

Tomasz Suchański, CEO of Żabka Group, commented:
“Our Q1 2025 results are fully in line with our guidance and confirm the effectiveness of the Group’s
long-term growth strategy. We achieved sales growth across every part of the business and are
sustaining dynamic expansion, opening nearly 150 stores per month. The Żabka network now
comprises more than 11,460 outlets and we are firmly on course to reach store number 12,000 this
year. Earlier this month we successfully placed a PLN 1 billion bond issue that attracted very strong
demand. The transaction further diversifies our funding base and positions us to concentrate on
continued growth in Poland and internationally.”

Tomasz Blicharski, Group Chief Strategy & Development Officer, added:
“In Q1 2025, we accelerated the roll-out of our food-to-go proposition, installing ovens in almost
2,000 additional stores. As promised, street-food products are now available in over 90% of the
estate. Quick Meal Solutions remain our fastest-growing category—we already sell around 4 million
hot meals a month. Since the start of the year we have focused on measures to lift like-for-like sales,
expanding the product range and introducing new promotional mechanics across our digital
ecosystem. These initiatives drove further market-share gains, 6% LFL growth and a 23% increase in
digital-channel sales. Such a strong opening quarter underpins our confidence in achieving the
strategic objective of doubling end-customer sales value between 2023 and 2028.”

Marta Wrochna-Łastowska, CFO of Żabka Group, said:
“Adjusted EBITDA grew 15% year on year in the first quarter. Stronger profitability within Żabka
Polska and a positive EBITDA contribution from our digital channels enabled us to keep expanding in
Romania without losing EBITDA-margin momentum, while lower financing costs supported an
improvement in the adjusted net result. Consistently rising EBITDA and robust free-cash-flow
conversion allowed us to reduce leverage further, strengthening the balance sheet. Net debt to
EBITDA fell to 1.6x at 31 March 2025, a 0.5x improvement year on year. On the back of our Q1
performance we reaffirm our short- and medium-term guidance on store openings, like-for-like
growth and the adjusted EBITDA margin.”

Key information regarding Żabka Group’s performance as at the end of Q1 2025:

• Adjusted EBITDA rose 15% year on year, to PLN 596 million, supported by greater scale of
  the business, like-for-like sales growth, disciplined cost management and the retention of
  the EBITDA margin achieved in 2024 within the digital businesses (DCO).
• Sales to end customers totalled PLN 6,618 million, representing growth of 14.8% year on
  year.
• This sales momentum reflected both the continued expansion of the store network and
  higher LFL turnover, complemented by stronger contributions from digital channels and the
  Romanian operation.
• As at 31 March 2025, the Group operated 11,460 outlets in Poland and Romania—the largest
  convenience network in Europe—an increase from 10,370 at the end of Q1 2024. Based on
  the assumptions outlined during the IPO, the Group estimates market potential at almost
  19,500 stores in Poland and approximately 4,000 stores in Romania, indicating substantial
  room for expansion in both markets.
• Like-for-like (LFL) sales increased 6.0%, reflecting higher sales volume per store supported
  by a unique and well-diversified product offering. A further important driver was the growing
  street-food offer, available in over 90% of the Polish estate at the end of March 2025.
• Rapid organic growth, supported by the transformation of the Żappka app, lifted revenue in
  the Digital Consumer Offer (DCO) businesses by 23%. This progress brings the Group closer
  to meeting its IPO target of quintupling DCO revenue by 2028.
• The adjusted net result was PLN -77 million, compared with PLN -97 million in the prior year.
• Free cash flow (FCF) was PLN 91 million versus PLN 321 million in Q1 2024; the decline
  reflects a high comparative base stemming from a one-off working capital release between
  late 2023 and early 2024. FCF generation in Q1 2025 was nonetheless consistent with the
  seasonality observed historically.
• Capital expenditure totalled PLN 325 million, an increase of 19% year on year, with most
  spending directed towards new-store openings, refurbishment of existing outlets and the
  roll-out of the Żabka Café 2.0 concept.
• The Group continued to execute its deleveraging strategy, lowering the net-debt-toadjusted-EBITDA ratio to 1.6x, from 2.1x at end-Q1 2024.

Selected financial and operational metrics for Q1 2025
(all margins calculated in relation to Sales to End Customers)

* Represents Sales to End Customers from Żabka stores, as well as of New Growth Engines, and does not represent the Company’s revenue.
** Adjusted EBITDA calculated as EBITDA pre-Rent and margins calculated based on Sales to End Customers.
*** Adjusted net profit includes net profit plus EBITDA adjustments, net of tax effect.

Bond Issuance Programme for qualified investors
In May 2025, Żabka Group issued 1 million sustainability-linked bonds (SLB) that comply with
International Capital Market Association (ICMA) standards, guaranteed by Żabka Polska, with an
aggregate nominal value of PLN 1 billion.

The bonds carry a floating-rate coupon of 6M WIBOR plus a margin of 150 basis points. They mature
five years from the issue date, with final redemption in May 2030. The instruments will be admitted
to trading on the Catalyst Alternative Trading System operated by the Warsaw Stock Exchange.

The issuance, executed under the previously established Bond Issuance Programme, does not
increase the Group’s net debt.

2024 marked by continued network expansion, solid like-for-like (LfL) growth, and improved profitability.

In 2024, the Żabka Group sustained its strong growth trajectory, fuelled by an 8.3% LfL growth and the ongoing expansion of its retail footprint. Over the year, the Group opened 1,166 new stores, while further scaling its Digital Customer Offering (DCO). As a result, Sales to End Customers reached PLN 27.3 billion, up nearly 20% year on year.

The Group’s adjusted EBITDA rose to PLN 3.5 billion, up 23.7% relative to the previous year. This improvement was driven by both operating leverage and enhanced margin performance. Supported by continued cost optimisation and lower energy prices, the 2024 adjusted EBITDA margin stood at 12.8%, having increased by 0.4 pp year on year. Adjusted net profit grew by 66% year on year, reaching PLN 714 million. In parallel, the Group generated PLN 1.5 billion in free cash flow over the period, while its net debt to adjusted EBITDA ratio declined significantly, from 2.3x to 1.5x. In addition, the Group successfully delivered on its key ESG objectives.

Tomasz Suchański, CEO of Żabka Group, commented: 

“In 2024, the Żabka Group delivered strong revenue growth across all core business segments, demonstrating the successful execution of our strategy as outlined to investors during our IPO. The continued rollout of our retail network resulted in more than 1,100 new store openings, bringing our total to over 11,000 locations by year-end. This increased scale, coupled with enhanced operational efficiency, has further cemented our position as a leading modern convenience network in the region. Over the course of the year, we reached two strategic milestones: our entry into Romania and our listing on the Warsaw Stock Exchange. We also met our key ESG commitments.

Looking ahead to 2025, our priority remains the sustainable creation of shareholder value by further strengthening the Group’s market leadership. We intend to continue broadening our retail footprint, deepen our presence across digital channels, and optimise our ultimate convenience ecosystem offerings to fully unlock the Group’s long-term growth potential.” 

Tomasz Blicharski, Group Chief Strategy & Development Officer, said:

“By leveraging prevailing consumer megatrends and our distinctive competitive advantages, we continue to expand Żabka’s ultimate convenience ecosystem, with a view to further simplifying people’s everyday lives. A key milestone in 2024 was our entry into the Romanian market through the acquisition of DRIM Daniel Distributie, followed by the rollout of several dozen stores under the dedicated Froo brand within just a few months. Our medium-term ambition is to double Sales to End Customers between 2023 and 2028. We aim to achieve this by consistently opening over 1,000 new stores annually, while driving growth across both existing locations (LfL) and our digital channels. Within our DCO, we have set ourselves an ambitious target of increasing Sales to End Customers fivefold by 2028.” 

Marta Wrochna-Łastowska, CFO of Żabka Group, added: 

“In 2024, the Żabka Group delivered strong financial and operational results, achieving all of our targets outlined during the IPO. Our adjusted EBITDA margin rose to 12.8%, approaching the upper end of our target range of 12–13%. This uplift was driven by strong per-store sales growth, successful cost-efficiency measures, ongoing process optimisation (particularly in logistics), and increased scale and profitability within the DCO segment, which reached EBITDA break-even during the year. Our strong operational performance translated into robust free cash flow (FCF) generation and further deleveraging. Our profitability is underpinned by a strong culture of operational excellence. By applying new technologies and granular data analytics, we have reduced the payback period for newly opened stores from 20 months in 2017 to just 12 months for those opened in 2023. In accordance with our IPO guidance, we expect to maintain a stable adjusted EBITDA margin close to the upper end of the 12–13% range over the short and medium term. For 2025, we also anticipate mid- to high-single-digit LfL growth, alongside continued net profit improvement.”

Key performance highlights for FY 2024:

• Adjusted EBITDA increased by 23.7% year on year, to PLN 3,505 million, supported by greater business scale, LfL growth, effective cost management, and the DCO segment becoming EBITDA positive. In Q4 2024 alone, adjusted EBITDA reached PLN 987 million, up 18% year on year.
• Sales to End Customers totalled PLN 27,277 million for the year, having increased 19.8% relative to the previous year. In the three months to 31 December 2024, Sales to End Customers rose by 18%, reaching PLN 6,885 million. 
• Total revenue for 2024 amounted to PLN 23,797 million, which represents a year-on-year growth of 20.2%. Q4 revenue increased by 20.8%, to PLN 6.1 billion. 
• Top-line growth was driven by a combination of LfL growth and the continued store network expansion.
• As at 31 December 2024, the Żabka Group operated 11,069 stores, maintaining its position as Europe’s largest convenience network, following the opening of 1,166 new locations over the year. In 2024, the Group entered the Romanian market, launching 60 stores by year-end. In 2025, Żabka will further consolidate its presence in Romania under the dedicated Froo brand, adapting its proven Żabka store format to local consumer preferences. In line with its IPO guidance, the Group estimates a total market potential of approximately 19,500 stores in Poland and around 4,000 stores in Romania, which offers a sizable runway for future growth in both geographies. 
• In 2024, LfL growth came in at 8.3%, supported by higher per-store sales volumes and the positive impact of inflation. A key contributor to this growth was also the continued rollout of Żabka’s street food offering, which by year-end was available in more than 75% of our stores in Poland.
• Rapid organic growth, bolstered by the evolution of the Żappka mobile app, drove a 32% increase in revenue from the DCO segment. The Group remains on track to deliver its IPO commitment of achieving a fivefold increase in DCO sales by 2028. 
• The adjusted EBITDA margin reached 12.8%, having improved by 0.4 pp year on year on the back of sustained cost efficiencies and lower energy costs. In Q4 2024, the adjusted EBITDA margin was 14.3%, unchanged from the same period last year. 
• Adjusted net profit for 2024 reached PLN 714 million, up nearly 65% from PLN 433 million in 2023. In Q4 alone, adjusted net profit amounted to PLN 294 million, having risen 28.4% from PLN 229 million the year before. Reported net profit for the full year was PLN 593 million, up 66.4% year on year, with Q4 reported profit at PLN 216 million, an increase of 4%. The net profit growth was primarily driven by operating leverage, reduced net finance costs, and a lower effective tax rate, partially offset by one-off IPO-related costs. 
• The adjusted net profit margin improved to 2.6% in 2024, up from 1.9% in the prior year. In Q4 alone, it rose to 4.3%, compared to 3.9% in Q4 2023. 
• Free cash flow (FCF) totalled PLN 1,531 million in 2024, a substantial increase from PLN 460.8 million a year earlier. This was driven by strong post-rent EBITDA performance and effective working capital management.
• The Group’s robust cash generation enabled the financing of total capital expenditures (CAPEX) of PLN 1,675 million in 2024 (+24% y/y), including PLN 623 million in Q4 alone (+35% y/y). A significant portion of this investment was allocated toward new store openings and the ongoing remodelling of existing locations, including the rollout of the Żabka Café 2.0 concept. 
• Supported by this strong cash flow performance, the Group made significant progress on its deleveraging strategy, reducing its net debt to adjusted EBITDA ratio from 2.3x in 2023 to 1.5x in 2024.

Selected financial and operational metrics for Q4 2024 and FY 2024
(all margins calculated in relation to Sales to End Customers)

*Represents Sales to End Customers from Żabka stores, as well as of New Growth Engines, and does not represent the Company’s revenue.
** Adjusted EBITDA calculated as EBITDA pre-Rent and margins calculated based on Sales to End Customers.
*** Adjusted net profit includes net profit plus EBITDA adjustments (mainly IPO costs in 2024), net of tax effect.

Sustainability reporting

The Żabka Group’s 2024 Annual Report is its first to include a consolidated sustainability statement. The statement is prepared in conformity with the Corporate Sustainability Reporting Directive (CSRD) disclosure requirements ahead of their formal enforcement timeline. Accordingly, the statement complies with the European Sustainability Reporting Standards (ESRS) and the EU Taxonomy for sustainable activities. The report provides a comprehensive overview of the Group’s double materiality assessment, which served to define the scope of its sustainability reporting. It also includes detailed information on the Group’s environmental, social, and governance (ESG) impacts. 

The Group’s voluntary early adoption of these enhanced reporting standards showcases its commitment to advancing sustainability disclosures and ensuring transparent communication with all stakeholder groups, particularly investors. The report also incorporates selected disclosures from the latest Global Reporting Initiative (GRI) standards, issued by the Global Sustainability Standards Board, and adopts the recommendations from the Sustainability Accounting Standards Board (SASB) for Food Retailers & Distributors.

The report outlines the Group’s progress and achievements in sustainability, in line with our ESG Framework and Responsibility Strategy. 

In 2024, the value of own-brand products promoting a sustainable lifestyle reached PLN 1.8 billion. Close collaboration with suppliers led to 82% acknowledging the Żabka Group Code of Conduct for Business Partners. Employee engagement remained strong, reaching a score of 4.54, an increase of 0.13 points year on year. This places Żabka in the 83rd percentile globally, among the top 25% of the world’s most engaged organisations. We also made meaningful progress in reducing our environmental footprint. Notably, we decreased the share of virgin plastic in our own-brand product packaging to 33.5%, cut GHG emissions from own operations by 31.2%, and achieved a 64.4% reduction in store (Scope 3) emissions intensity – all relative to our 2020 baseline. Our ESG leadership was once again recognised by EcoVadis, which awarded the Żabka Group a Platinum Medal for the third consecutive year, placing us among the top 1% of companies assessed globally.

In 2024, Zabka Group S.A. (“Zabka Group”) saw its preliminary consolidated Sales to End Customers rise by 20%, to PLN 27,281 m. The sales growth was achieved largely on the back of LFL growth (up by 8.3%) and store network expansion – in 2024 the Group opened 1,166 new stores.

In the fourth quarter of 2024 Zabka Group recorded sales to end customers of PLN 6,889 m (up by 18%, compared to the fourth quarter of 2023) and an acceleration in like-for-like (LFL) sales which increased by 1.1 pp. compared to the third quarter 2024, reaching 7.1%.

Over the year, Zabka Group’s network grew to 11,069 stores as at 31 December 2024, of which 60 were located in Romania.

Comment by Tomasz Suchański, CEO of Zabka Group:
Our preliminary sales results for 2024 confirm that we are successfully delivering on the commitments communicated to investors during our IPO process. We positively view both the current market environment and the purchasing power of customers in the convenience retail segment, allowing us to continue the execution of our strategy. As Zabka Group, we are capitalizing on favorable consumer megatrends, steadily scaling up our operations. By year-end, our network grew to over 11,000 stores, including more than 1,100 new openings in 2024, in line with plans we had announced. We can see significant growth potential ahead and look towards 2025 with a fair dose of optimism.

Strong Q4 and full year 2024

For the full year 2024, our Sales to End Customers increased by 20%. The 2024 full year LFL reached 8.3%, slightly above the mid-point of the targeted range (i.e. 7.5% - 9.0%) and was fueled by balanced volume and basket growth throughout the whole year.

In the fourth quarter of 2024 our sales to end customers growth reached 18% yoy on the back of a healthy mix of organic growth and store network expansion. The fourth quarter of 2024 marked another period of LFL growth in Żabka Polska stores, which reached 7.1% and was higher by 1.1 pp compared to the third quarter of 2024. This growth was supported, among others, by the rollout of Żabka Café 2.0 to 8,275 of our stores (6,918 as at September 2024) and our differentiated product offerings.

Further store openings

In 2024, Zabka Group opened 1,166 new stores, including 60 in Romania, thus expanding its network to 11,069 points of sale as of December 31, 2024. In the fourth quarter, the Group opened 169 new stores

Anticipated margin improvement

Zabka Group anticipates that the consolidated adjusted EBITDA margin for the fourth quarter of 2024 will be comparable to that of the fourth quarter of 2023. Consequently, the Group maintains its IPO guidance, aiming for margin improvements towards the upper end of the 12-13% target range in the medium term. As previously mentioned, the Group also expects an accelerated pace of consolidated adjusted EBITDA margin expansion in 2024, benefiting from the normalization of energy costs and increased efficiencies of scale.

Summary of Q4 and full year 2024 preliminary results

Żabka store chain has reached another milestone with the opening of its 11,000th outlet in Poland. The new store, located in Warsaw at 8 Moliera Street, near the Grand Theatre, fits into the fabric and character of the city. This is a significant moment in the history of the chain, which has been supporting the development of entrepreneurship for more than two decades, creating a stable foundation for the growth of thousands of local businesses. Żabka maintains the pace of expansion and, in line with earlier declarations, opens more than 1,000 stores yearly.

For 26 years, the chain has been successfully growing in the convenience sector in Poland, providing customers with convenient solutions at their fingertips. Interest in cooperating with the chain remains consistently high - currently more than 9,000 franchisees run their outlets under the green banner. This reflects not only a desire to develop entrepreneurship but also proves the attractiveness and effectiveness of Żabka's business model. Today, Żabka is a leader in the modern convenience segment and a brand recognised by millions of customers, which continuously adapts its operations to the changing needs of consumers and franchisees. The chain is growing dynamically, opening more than 1,000 stores a year. Such a scale allows it to consistently expand its offer, searching for new and innovative solutions, which translates into increased turnover in franchisees' stores.

– Żabka is more than a store. It is a chain that invests in people, and local communities and influences the development of the Polish economy. Thanks to cooperation with franchisees, Żabka Group has already created 63,000 jobs. Our 11,000 stores are not only a symbol of development, but also proof that we can combine business success with a positive environmental impact – says Adam Manikowski, EVP, Managing Director of Żabka Polska.

The store's unique location adjacent to the Grand Theatre in Warsaw made the opening day of the 11,000th outlet a real spectacle. At the entrance, customers were greeted by actors from the Lufcik na Korbę theatre from Gliwice, playing the roles of the greatest characters from the world of theatre, while opening a huge green curtain revealing the store's doors. Żabka is located in a building at 8 Moliera Street, which since the 1960s has been inhabited by employees of the opera house located next door. In turn, the street was named after an outstanding playwright and comedy writer.

The outlet is distinguished not only by its location but also by its modern approach to customer service - it has been equipped with a consumption area where guests can relax while enjoying aromatic coffee or hot meals and look out over the neighbouring National Theatre through tall display windows. Ergonomic technological solutions, including a kiosk for ordering products from Żabka Café offer, as well as the store's intuitive layout ensure fast and convenient shopping.

– The opening of this store is a special moment for me – says Jakub Kunecki, franchisee of the new outlet. – Żabka at 8 Moliera Street is not only a place for shopping, but also a space where customers can slow down for a while and feel comfortable. I am glad to be able to run a store in such a prestigious place, and at the same time, I am proud to be a part of a brand that supports entrepreneurs every step of the way. The dynamic growth of Żabka, which has been consistently developing its business and building local entrepreneurship since 1998, is the result of the support the chain offers its franchisees. Over 9,000 entrepreneurs, including nearly 900 in Warsaw, benefit from an innovative business model that combines a low barrier to entry with comprehensive operational and technological support. Żabka provides tools that help effectively manage outlets and improve their efficiency, not only in agglomerations such as Warsaw - the smallest town in which one of the chain's stores operates is Porażyn-Tartak, inhabited by 100 people.

Zabka Group SA has signed an annex to its consortium credit agreement with ING Bank N.V.
London Branch (as Agent) and other financing institutions, reducing the margin by 75 bps.
Including the reduction in the margin by 25 bps from 17 October 2024 in connection with the
company’s listing on the Warsaw Stock Exchange, this means a combined decrease in the credit
margin of 100 bps.

The annex also allows Zabka Group to issue unsecured bonds up to a total of PLN 1 billion (within
the existing debt limits), which increases the flexibility of the group’s financing sources.

The annex also adjusts the terms of the agreement to suit the company’s current situation and
needs, among other things by reducing the catalogue of security instruments and lifting the
restriction on transferring funds or selling assets between members of the company’s corporate
group.

Marta Wrochna-Łastowska, CFO of Zabka Group, commented: “In line with the guidance presented
during the IPO, we have reduced the interest rate on our financing under the credit agreement by a
combined 100 basis points. This was possible due, among other factors, to the results we have
achieved, the consistent reduction of our leverage ratio, and the commencement of trading on the
WSE, which has increased the transparency of our business for the financing institutions. The annex
we have signed also raises the flexibility of our financing sources, thanks to the possibility of issuing
unsecured bonds up to a total of PLN 1 billion, within the existing debt limits.”

Already 9,000 franchisees run their local businesses under the Żabka banner. The 9,000th entrepreneur has just joined the chain and manages a store in Kosina (Podkarpackie voivodship), with a population of less than 4,000. Żabka successfully attracts motivated and committed people with its business model, offering them premises, extensive training, and logistical and marketing support. It is the diversity and uniqueness of the franchisees that are the strength of the chain. Thanks to them, Żabka's offer is available in almost every corner of Poland, also in small towns.

– We are delighted to welcome our 9,000th franchisee. Entrepreneurs running their stores with the Żabka logo play a key role in our chain's development. We are constantly enriching our offer by adapting it to the needs of customers also from small towns, who increasingly value time and convenience. At the same time, we are developing our business model with comprehensive training, modern store management tools and a benefits package. Franchising is the best school for entrepreneurship, and we aim to support franchisees in developing their businesses – says Adam Manikowski, EVP, Managing Director of Żabka Polska.

Jakub Uberman became the 9000th franchisee. Until now, he has supported his wife in running a beauty salon. Previously, he was also a sales manager and sales representative for an agricultural company.

– Joining Żabka was an obvious choice for me, primarily because of the comprehensive support the chain offers at every stage of running a store. The possibility of development and a proven business model were key in my decision. In addition, the recognition of the Żabka brand gives me confidence that I will attract a wide range of loyal customers from the very beginning –says Jakub Uberman, the 9,000th franchisee to run a Żabka store in Kosina.

The potential of small towns

Last year, Żabka chain opened over 1,000 new stores, including 130 in towns with fewer than 50,000 inhabitants. In the Podkarpackie voivodship alone, there are almost 280 stores, including 75 in Rzeszów, and the newly-opened store in Kosin is the first in this locality. Statistical data shows that ladies comprise a vast majority (75%) of those who decide to set up their own business and run their Żabka store in the said voivodship.

Entrepreneurs developing their business with Żabka in small towns and rural areas can count on additional support from the chain. One of the solutions offered is the 'Vehicle for a Start' programme, which provides a car to get to the outlet. This programme is aimed at entrepreneurs who run stores in towns with up to 30,000 people or live in other locations daily. An additional benefit is the relocation package, i.e. monthly financial support for franchisees who decide to move to open a store in a town with a population of up to 50,000.

Benefits of the Żabka franchise

Franchisees joining the chain receive fully equipped and furnished premises. From the beginning of the cooperation, entrepreneurs benefit from substantive, service and technological support. The chain provides innovative solutions such as the Optiplan programme and the Cyberstore application, which enables remote store management via smartphone, including ordering, generating reports and verifying delivery times. Franchisees also receive a comprehensive training package that prepares them to run the store and is tailored to individual needs. Importantly, the chain offers franchisees a unique collective insurance on the market, 'Policy for Business', which, under the terms and conditions agreed with the insurance company, protects them against possible financial failure and ensures economic stability in the event of termination of cooperation with the chain with a negative balance.

More information about franchising with Żabka can be found at: www.zabka.pl/franczyza

One of Europe's biggest modern convenience brands is launching a new chain of stores in Romania. Over the past month, five stores have been set up in Bucharest under the Froo banner. This is a new brand within the ecosystem of the Żabka Group in the European market. The Group, which owns, among other things, a chain of over 10,000 Żabka stores in Poland and Maczfit, a leading diet catering company, joined forces with DRIM Daniel Distributie in February this year, taking a majority stake in a leading FMCG distribution company in Romania. Froo are modern convenience stores equivalent to the Żabka stores operating in Poland.

Żabka Group is a comprehensive convenience ecosystem originating in Poland with both physical and digital sales channels. Its products and services are used daily by more than 3 million people who value their time and the convenience of shopping.

The Żabka Group in Poland includes over 10,000 stores under the Żabka banner, Nano unmanned stores, q-commerce, e-commerce solutions and diet catering. Żabka has been building its leading position since 1998 when the first store was established in Poland. In entering the Romanian market, the Group is building on more than 25 years of experience gained in the Polish market, knowledge of consumer behaviour and the know-how of its Romanian partner DRIM Daniel Distributie – a leader in FMCG distribution in Romania.

– Romania is a significant market in Central and Eastern Europe, with a population of over 19 million inhabitants, making it the second-largest consumer market in the region. The similar consumer profile to Poland and the growth prospects for the Romanian market made this direction a natural step in the expansion of the Żabka Group. Romanian consumers appreciate small, nearby shops where they can make impulse purchases for immediate consumption - which is why Froo fits in well with their needs with its mission statement "Everything you need, you will find in Froo". – says Anna Grabowska, CEO of Zabka International.

An analysis of the Romanian market and a survey of local consumers conducted by Kantar[1] shows that 47% of Romanian citizens surveyed prefer to shop spontaneously or on impulse when time allows. The same group indicated that they like to buy groceries in small stores close to where they are staying. Froo aims to respond to the needs of this group of people.

Development of local entrepreneurship

The name Froo refers to the DNA of the Polish brand from which it originated. Żabka's characteristic smile has remained in the Froo logo, under the letters RO - on the one hand, this is a reference to Romania, on the other hand, the smile itself is an important symbol for the brand of openness and a positive approach to customers, and the name itself is short and easy to pronounce. Although the name of the chain is different in Poland and Romania, the branding and character of the brand have remained the same.

Froo Romania Retail S.R.L., a company belonging to the Żabka Group, is responsible for the development of the store chain in Romania. It aims to support local entrepreneurship, so the stores will operate under a business partnership model. Froo plans to open stores in major towns and cities across Romania, with outlets ranging from 50 to 70 sqm. Each location is analysed in terms of its attractiveness to customers, but also logistics and growth potential. There are currently five stores operating under the Froo banner in the country's capital.

– In the first stage, we opened the stores in the friends&family formula, which allowed us to test the IT, assortment and logistics solutions introduced. We then opened test outlets for customers. We asked for their opinions and perceptions of our stores. We are committed to responding to our customers' needs in the best possible way, which is why we are constantly improving our processes and enhancing our offer. We are aware that we still have a lot to learn, but thanks to the cooperation within the Group and the local market experience of DRIM Daniel Distributie, we can provide customers with a new shopping experience.  – says Radu Trandafir, General Manager, Froo Romania Retail S.R.L.

Everything you need can be found at Froo

In the Froo chain's stores, more than 80% of the assortment consists of well-known and well-liked Romanian brands and international brands from Romanian suppliers. Following the example of the Polish market, Froo also offers private label products - the range includes Tommy Bites sandwiches, Good Soul lunch products and Barefruit drinks. A wide range of hot snacks, such as a hot dog or fries, and coffees are also available at all stores, operating under the Froo Bistro banner. An offer prepared for customers who want to quickly satisfy their hunger and thirst on the go.

In all stores, customers can return product packaging covered by the deposit system - with a capacity of 0.1 to 3 litres. Reverse Vending Machines (RVMs) are available at selected outlets for the collection of plastic, aluminium and glass packaging. Packaging can also be left at retailers. The deposit activities undertaken by Froo are a result of Żabka Group's Responsibility Strategy, which includes activities promoting a closed-loop economy. It is also a fulfilment of the regulations in force in Romania.

[1] Source: Kantar CAWI survey, 2022.

Żabka Group was ranked 2^nd in the Top 100 Global Most Loved Workplaces® 2024 list. The ranking was published by the US weekly magazine Newsweek and brings together the 100 most loved workplaces in the world. The ranking was prepared in collaboration with the Best Practice Institute (BPI), a leadership development and benchmarking research firm.

“I am proud that Żabka Group has been placed on the podium of the prestigious Top 100 Global Most Loved Workplaces 2024 ranking. Our organisation is made up of people who want to change the surrounding reality, and their commitment is reflected today by the high market position of Żabka Group. Together, every day, we build a working environment based on respect, cooperation and sharing experiences, and thanks to this we can create innovations on an international scale.  The award is the crowning achievement of our 6-year cooperation with the Gallup Institute, thanks to which our organisation has become one of the best places to work in the world," says Tomasz Suchański, CEO of Żabka Group.

The ranking is based on the results of satisfaction surveys of more than 2 million people from companies with between 30 and more than 10,000 employees. The list recognises companies that put respect, care and appreciation for their employees at the heart of their business model, and in doing so have earned the loyalty and respect of those who work for them.

“As workplaces continue to shift, it’s clearer than ever that fostering collaboration, embracing a positive outlook, and aligning values are essential. The companies celebrated on the 2024 Global Most Loved Workplaces® list truly embody these principles. They show us that by championing respect and team oriented outcomes, they’re not just building great workplaces, they’re shaping a brighter future for all.” – says Nancy Cooper, Global Editor in Chief of Newsweek.

"I started Most Loved Workplaces out of inspiration from my community of people who consciously place love for their employees at the center of their business model," said Louis Carter, the founder, and CEO of BPI and a social/organizational psychologist, thought leader, entrepreneur, and author.

For the full Newsweek list of 2024’s Top 100 Most Loved Workplaces®, please visit: https://www.newsweek.com/rankings/global-most-loved-workplaces-2024 Żabka Group's Responsibility (ESG) Report is available at: https://zabkagroup.com/esg/

The activities of Żabka Group have a significant impact on the development of the Polish economy. The recently published Responsibility Report, "Conveniently and Responsibly", shows that the total amount of added value generated by the Group and its collaborating franchisees reached PLN 9.1 billion in 2023, 30% more than in 2022. The report is published for the sixth time and summarises the implementation of Żabka Group’s Responsibility Strategy (ESG) during 2023.

– Thanks to the dynamic growth and innovation of Żabka Group, we can have a positive impact on the Polish economy. This translates, among other things, into creating favourable conditions for the development of entrepreneurship, increasing the number of jobs we provide, which currently stand at more than 63,000, and making a difference in the shopping experience of the over 3 million customers who visit our more than 10,000 stores across Poland every day. The actions we took in 2023 have been recognised for the second consecutive year in the prestigious EcoVadis rating, and today we are ranked among the 1% of companies worldwide that best integrate ESG factors into their strategies and operations –says Tomasz Blicharski, EVP of the Management Board, Chief Strategy & Development Officer of Żabka Group.

The 2023 Responsibility Report

The "Conveniently and Responsibly" Report is the sixth Responsibility Report prepared by Żabka Group. The publication was prepared in line with the latest non-financial reporting standards of the Global Reporting Initiative (GRI Standards) and the Sustainability Accounting Standards Board (SASB).

–In line with our strategic approach to social and environmental responsibility, we integrate ESG aspects into all relevant Group plans and activities. Achieving the objectives set in this area requires proper management, commitment, time and resources and, above all, teamwork –says Rafal Rudzki, ESG Director at Żabka Group.

The cover of the report features a poster designed by Katarzyna Panek. The Żabka Group recognised this as the most accurate visual interpretation of the guiding slogan of its Responsibility Strategy, “Conveniently and Responsibly”, in the the 24th edition of the AMS Poster Gallery’s annual competition. Żabka Group was the main partner of the competition in 2023.

Żabka Group's 2023 Responsibility Report is available electronically: https://zabkagroup.com/esg/#raport-ESG

For the second time in a row, Żabka Group has found itself among the exceptional workplaces in the world whose employees demonstrate the highest level of commitment. It won the Gallup Exceptional Workplace Award 2024, thus becoming the first and only Polish company to receive this prestigious distinction. The award is gratifying, all the more so because it was Żabka's employees who appreciated its organisational culture based on jointly developed values, built on mutual respect, trust, equality and transparency at every level of the organisation.

– Żabka Group's strength lies in building and nurturing relationships between employees. We listen very carefully to the needs of every one of them so that each person employed by our company has a sense of meaning in the tasks they perform and opportunities for professional and personal development. This builds trust in the organisation and translates directly into a high level of involvement of our employees in the execution of daily activities, as evidenced by the second Gallup Exceptional Workplace Award 2024 – says Jolanta Bańczerowska, Member of the Management Board, Chief People Officer.

Employees have once again recognised Żabka. It is one of the best places to work in the world

Żabka Group has been measuring the level of engagement of its employees for 6 years now. Thanks to the feedback it receives regularly, the company has prepared changes whose consistent implementation has enabled Żabka's transformation as an organisation. For the second time in a row, the company, as the only Polish organisation, was ranked among the world's top 60 companies (out of 276 surveyed) in which more than 70% of employees were involved in the company's activities last year (the world average was only 23%).

– The Gallup Exceptional Workplace Award 2024 for Żabka Group clearly shows that employee engagement makes a huge difference to the company's growth. Their work to continuously increase the commitment of their teams deserves the highest recognition. We congratulate everyone at Żabka on this exceptional achievement – points out Jon Clifton, CEO of the Gallup Organization.

Conducted by the Gallup Organization - the world's oldest polling institute - the meta-analysis included data on more than 2 million employees working in 276 organisations worldwide, from 54 industries and 96 countries. This makes it the most comprehensive analysis worldwide. In anonymous questionnaires, employees indicate, among other things, whether they feel their manager/supervisor cares about them; whether they have been appreciated during the past week; whether they are encouraged to develop at work; and whether they feel the importance of their duties. In all these aspects, Żabka was rated highly, confirming its position among the world leaders in terms of an engaging organisational culture.

Equality and inclusiveness as a basis for building lasting relationships

A Gallup Organization study confirms that Żabka has been actively supporting its employees at every stage of their development within the organisation. To this end, in 2022 the company implemented an equal pay policy, recognising that women and men should be treated and paid the same. Confirmation of the fact that at Żabka it is not gender but experience and competencies that influence pay is the awarding of the EQUAL-SALARY certificate to Żabka as the first Polish organisation.

The organisation also realises that the springboard for building engagement and stabilising teams is inclusivity. Satisfied employees who derive satisfaction from their work are less likely to think about changing jobs. This, in turn, provides the opportunity to focus on challenging and long-term projects.

Effective internal communication between teams results in greater productivity in key areas. As a result, new ideas, concepts and ideas from employees at every level of the organisation can be implemented efficiently. Thus, Żabka Group employees have a sense of influence on the direction of the organisation and know that their ideas are appreciated.

Importantly, the values on which Żabka's organisational culture is built, i.e. ambition, responsibility, openness and reliability, have not been imposed from above but developed jointly. As a result, they are a compass in everyday work and people employed by the organisation easily identify with them.

Building a credible organisation based on strong and committed teams is part of Żabka Group's Responsibility Strategy (ESG), one of the four pillars of which is "Responsible Organisation".

Żabka Group has received approval from the Romanian Competition Authority to acquire a majority stake in FMCG distribution leader DRIM Daniel Distributie in Romania. As a result of this decision, on February 29th, this year, Żabka Group met all regulatory requirements and finalised the transaction.

– We welcomed the news that the formal process of merging DRIM Daniel Distributie with the Żabka Group has been completed. This is another step towards the development of the convenience ecosystem in the European market and our further expansion. We hope that the strategic cooperation with DRIM will influence the further dynamic development of this company –says Tomasz Suchanski, CEO of Żabka Group.

DRIM Daniel Distributie is one of the largest distribution networks for FMCG products on the Romanian market, currently employing more than 800 people. Throughout its 30 years of activity, the company has created an extensive logistical structure, allowing it to supply around 12,000 traditional trade stores today.  The formal acquisition of a majority stake in DRIM Daniel Distributie enables the further accelerated growth of the company announced by Żabka Group, taking advantage of DRIM's market position, local reputation, know-how in the convenience area and capital commitment.