From 19–23 January 2026, the 56th Annual Meeting of the World Economic Forum (WEF) will once again bring together global leaders from business, politics, academia and culture in Switzerland. This year, the Polish business and expert community is strengthening the country’s presence in Davos through the creation of Leaders Forum powered by Poland. The five-day programme is organised by the Centre for International Relations Foundation (CIR) and THINKTANK, with Autopay, Adamed and Żabka Group as its principal partners.

Leaders Forum powered by Poland will take place from 19–23 January as an official satellite event to the World Economic Forum, which in 2026 will convene under the theme “A Spirit of Dialogue”. Discussions in Davos will focus on critical global challenges: fostering cooperation in an era of heightened competition, identifying new drivers of growth, investing in human capital, advancing innovation responsibly, and contributing to a more stable international environment.

The purpose of Leaders Forum powered by Poland is to amplify Poland’s voice in global debate and to position the country as Europe’s emerging leader of development and a dynamic innovation hub for Central and Eastern Europe. The Forum will bring together leaders from business, government, academia and culture, creating a platform for meaningful international dialogue.

“As the world’s 20th largest economy and the fifth largest in the European Union, Poland is entering a new chapter in its history. The invitation from the President of the United States to join the G20 during the American presidency signals how far our global standing has advanced. We have achieved an extraordinary transformation in just three decades. Yet our presence remains insufficient in many of the places where the world’s future is discussed and shaped. One of these is Davos during the World Economic Forum. ‘Leaders Forum powered by Poland’ represents a collective effort by our think tanks, businesses, government and academic community to showcase the Poland of today – creative, modern, energetic and ready to co-create solutions for Europe and the world. Our voice must be heard” – says Dr Małgorzata Bonikowska, President of the Centre for International Relations and THINKTANK.

Perspectives from Polish Business

The principal partners of Leaders Forum powered by Poland are: 

• Autopay – a European brand of Polish origin, building a comprehensive fintech ecosystem, 
• Adamed – an innovative Polish pharmaceutical and biotechnology company with global reach,
• Żabka Group – one of Europe’s leading modern convenience ecosystems. 

“Our mission is to connect businesses and consumers within a partnership-driven fintech ecosystem that saves time and accelerates shared growth. With mature technological competences, extensive experience in handling high transaction volumes and a future-ready architecture, we are consistently building our position as a global player. We are executing an ambitious international expansion strategy across Europe, South America, Southeast Asia and the Arabian Peninsula. Being present in Davos—one of the world’s most important venues for discussions on the economy and innovation—is a natural step for a company with global ambitions” – says Wojciech Murawski, Co-CEO of Autopay.

“Over 40 years, Adamed has evolved from a small family enterprise into an international company. Our medicines now support patients in dozens of countries, and we operate manufacturing sites in Poland and Asia as well as eight international offices. We have succeeded by investing in scientific excellence and innovation. We will be in Davos to demonstrate the strength of the Polish brand and of the Polish economy, which has ascended into the ranks of the world’s 20 largest economies in such a short time” – says Katarzyna Dubno, Director of External Relations, ESG and Health Economics at Adamed Pharma.

 “Żabka has grown from a small store into an international company and a European leader in modern convenience retail. Much of this success is due to the transformation that Poland has undergone over the past decades. Today, Poland is one of the fastest-developing economies globally, which justifies the country’s consistent presence at events such as the Forum in Davos. Together with THINKTANK and our partners, we believe it is time to showcase Poland in a way that challenges outdated stereotypes. The innovative technologies employed by Żabka and our responsible business practices demonstrate that a Polish company can set global trends. I am confident that, as a nation, we lead in many areas—and that this is a strong foundation on which to build Poland’s international brand” – says Tomasz Suchański, CEO of Żabka Group.

The principal partners of Leaders Forum powered by Poland are Autopay, Adamed and Żabka Group.

Additional partners include: PKO BP, Orlen, and the Centralny Port Komunikacyjny (Central Transport Hub).

The institutional partner is Konfederacja Lewiatan, organiser of the European Forum for New Ideas, and the academic partner is the University of Warsaw.

The main media partner of the Leaders Forum is Ringier Axel Springer. The project is also supported by TVP World and TVP Info.

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Autopay is a European brand with Polish roots that is building a comprehensive fintech ecosystem for businesses and consumers. It helps save time and reduces dependence on single providers by automating payments in e-commerce, telecommunications, municipal services, and mobility. Autopay’s solutions are used by 15 million users, and 50,000 companies choose its payment, biometric, verification, and mobility technologies.
The brand operates based on the values of independence, freedom, responsibility, partnership, and trust — creating solutions that offer real choice, control, and a collaborative model of cooperation. Autopay is now one of the largest technology companies in Central and Eastern Europe and is rapidly expanding its operations in Europe, South America, Southeast Asia, and the Arabian Peninsula.

Adamed Pharma is a Polish family-owned pharmaceutical and biotechnology company producing nearly 900 stock-keeping units in Poland and abroad, serving patients in dozens of countries. The company employs almost 2,800 people. For 20 years, Adamed has conducted its own innovative R&D activities, investing nearly PLN 2.4 billion since 2001. It collaborates scientifically with leading universities, medical experts and research institutes worldwide. The company’s intellectual property is protected by 256 patents globally.

Żabka Group is Ultimate Convenience Ecosystem with a mission to create value by simplifying people’s everyday lives. The Group serves an expanding customer base seeking convenient solutions while promoting responsible practices towards customers, franchisees, suppliers and the wider environment, including sustainable product and packaging use. The ecosystem includes Poland’s leading modern convenience retail network under the Żabka brand, and the Froo network in Romania – together comprising more than 12,000 stores. The network is complemented by Żabka Nano, Europe’s largest chain of autonomous, unmanned stores offering 24/7 shopping. The Group also offers an advanced portfolio of digital services. Its brand Maczfit provides high-quality ready-to-eat meals delivered directly to customers, while Dietly is a leading platform for comparing dietary catering providers. Online grocery operations are run through the Jush! and Delio brands. Since October 2024, Żabka Group has been listed on the Warsaw Stock Exchange.

The Żabka Group maintains a strong pace of growth. As at the end of the third quarter of 2025, the number of stores in Poland and Romania reached 12,099, representing an increase of almost 11% year on year. As part of the accelerated rollout, the Group plans to open over 1,300 new outlets in Poland and Romania in 2025.

Despite unfavourable weather conditions, like-for-like sales rose 5.5% in the first nine months. Additionally, sales growth was driven by the ongoing expansion of the network in Poland and Romania, as well as the continued development of the DCO segment. Consequently, sales to end customers grew by 14.1%, to PLN 23.27 billion, with consolidated revenue rising to PLN 20.23 billion.

Adjusted EBITDA increased by 16.5% to PLN 2.93 billion as at the end of September 2025, reflecting network expansion, LfL performance, and disciplined cost control. Adjusted EBITDA margin widened by 0.3pp, to 12.6%. Adjusted net profit for the first nine months of 2025 came in at PLN 649 million, an increase of 54.6% year on year, resulting in an adjusted net profit margin of 2.8% (compared with 2.1% a year earlier).

Supported by stable cash generation and consistent debt reduction, the net financial debt to adjusted EBITDA post-rent ratio decreased by 0.4x year on year, reaching 1.0x at the end of the third quarter of 2025, a level that supports recommending a dividend in line with the Group’s updated strategy. 

Tomasz Suchański, CEO of Żabka Group, commented:

“Our results after the first three quarters of 2025 confirm that the strategy outlined at the IPO is delivering tangible outcomes and is helping us grow Żabka Group’s value with determination and consistency. We are maintaining steady growth across all key business areas, leveraging the synergies between network expansion, digitalisation, and product innovation. Our expansion is gaining further momentum – we are well on track to exceed our revised target of more than 1,300 new openings this year and to reach approximately 16,000 stores in Poland and Romania by the end of 2028. We continue to strengthen Żabka Group’s position as an efficient modern convenience ecosystem that addresses customers’ everyday needs, supports sustainable development, and creates long-term value for shareholders.”

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

“Our effective business model enables us to consistently reinforce our market position and increase market share, which, according to Nielsen, reached 10.7% at the end of September 2025. We are maintaining a rapid expansion pace, taking advantage of the wide availability of high-quality locations and tapping the potential to convert traditional retail into a modern convenience format.  Our business model resonates in the market, driving strong interest from prospective franchisees. In Romania, the Froo network is expanding rapidly, becoming one of the fastest-growing convenience formats in the market. Like-for-like sales growth is supported by even better tailoring of our store format to customer preferences and Point of Sales assisted product promotion. Additionally, we are accelerating development of our DCO segment, by introducing own parcel delivery service and entering into fintech space, as well as rolling out our eGrocery services in a new city, Wrocław.”

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

„We are pleased with our results in the first nine months of the year, driven by sustained strong performance of our core business. Our operational efficiency and rigorous cost management allowed us to improve our adjusted EBITDA margin, despite unfavourable weather conditions, underpinning our confidence in ability to deliver a modest improvement of our full-year adjusted EBITDA margin towards the upper end of the 12–13% range. We also significantly strengthened our capital structure and reduced financing costs. Following the successful bond issuance in May, we improved our terms of financing in September by extending maturities and lowering margins of our debt facility, which combined with tax efficiencies, allowed us to reach adjusted net profit margin of 2.8% after the first nine months of the year. This trajectory positions us well to deliver on our full-year guidance, with our adjusted net profit margin approaching our target of 3% already in 2025.”

Key information regarding Żabka Group’s performance in 9M 2025:

• Revenue for the first three quarters of 2025 increased by 14.1% to PLN 20.23 billion.  In the third quarter alone, revenue amounted to PLN 7.44 billion, representing an increase of 13.1% year on year. Growth was fuelled by organic expansion, driven by solid LfL performance and the continued rollout of the Żabka store network in Poland, as well as by strong results from the New Growth Engines (NGE) – the Group’s operations in Romania and its digital channels (DCO).
• Sales to end customers for the first nine months of 2025 reached approximately PLN 23.27 billion, up 14.1% year on year. In the third quarter, sales increased by 13.6% to nearly PLN 8.52 billion.
• Despite adverse weather in 2025, like-for-like sales rose 5.5%, including 4.5% growth in the third quarter. The momentum was supported by an enhanced product offering, especially in the QMS segment.
• Driven by continued strong sales growth and the implementation of cost-efficiency programmes, adjusted EBITDA for the third quarter increased by 14.3% year on year to PLN 1.28 billion. Over the nine-month period, adjusted EBITDA rose by 16.5% to PLN 2.93 billion. Adjusted EBITDA margin improved to 15.0% in the third quarter (compared with 14.9% a year earlier) and to 12.6% for the first nine months (versus 12.3% in the prior year).
• The Żabka Group increased its market share, further strengthening its position as the largest convenience network in Europe. During the first nine months of 2025, the Group opened 1,127 new stores, 130 more than in the same period of 2024. As a result, at the end of September the total number of outlets in Poland and Romania reached 12,099, representing a 11% increase year on year. According to its updated expansion plans, the Żabka Group estimates the combined market potential of Poland and Romania at approximately 27,000 stores. 
• The New Growth Engines segment (NGE), including digital businesses and operations in Romania, generated sales to end customers of approximately PLN 1.12 billion in the nine months of 2025, marking an increase of 42.5% year on year. Since its launch in May 2024, the Froo network has expanded to 122 outlets, of which 67 stores were opened in the first three quarters of 2025. The DCO business achieved a positive EBITDA, mainly due to improved performance in eGrocery and D2C meals business.
• Adjusted net profit for the first three quarters of 2025 amounted to PLN 649 million, an increase of 54.6% year on year. In the third quarter, it reached PLN 505 million, compared with PLN 341 million a year earlier (+48%).
• Free cash flows remained stable at PLN 1.8 billion, slightly down (5.4%) year on year. In the third quarter, free cash flow totalled PLN 639 million, compared with PLN 647 million in the prior year (-1.2%).
• Capital expenditure (CAPEX) for the first nine months of 2025 totalled PLN 1.08 billion, an increase of 3.1% year on year. Investments focused on network expansion and the development of the DCO, including Maczfit, Dietly.pl, Nano, Żabka Jush, and delio.
• Over the past year, the Żabka Group reduced its net debt to adjusted EBITDA post-rent ratio by 0.4x year on year, reaching 1.0x at the end of September 2025, supported by solid cash generation and growth in adjusted EBITDA.

Q3 2025 and 9M 2025 highlights

Selected KPIs and performance metrics

(all margins calculated in relation to Sales to End Customers)

* 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.
*** Represents sales to end customers from Żabka stores, as well as of New Growth Engines, And does not represent the Company’s revenue.

Strategy update

In line with the strategy update published on 30 September 2025, the Żabka Group plans a significant acceleration of its store network expansion. The target for new openings in 2025–2028 has been raised to over 1,300 outlets per year, compared with 1,300 in 2025 and 1,000 per year for 2026–2028 under the previous plan. This puts the network on track to reach around 16,000 stores by the end of 2028, about 1,500 more than projected at the time of Żabka’s first-time listing on the Warsaw Stock Exchange.While organic expansion remains as the core of its growth strategy, The Żabka Group does not rule out mergers and acquisitions that could enhance its position or extend its footprint into new markets. The Board of Directors is going to recommend distributing 50% of 2025 net profit as dividends, and 50–70% of net profit in subsequent years, subject to market conditions and planned investments. In the longer term, the Group may also launch share buyback programmes.

Żabka Group has once again been awarded the prestigious EQUAL-SALARY certification, reaffirming the company’s long-term commitment to ensuring pay equity across its organisation. Granted by the Swiss EQUAL-SALARY Foundation, the certification is based on international equality standards aligned with the United Nations Sustainable Development Goals and recognised by the European Commission. It confirms that Żabka consistently strives to provide equal development opportunities for all employees, regardless of gender.

Verified Pay Equity

The certification was granted following an independent audit conducted by PwC, in which 2,800 employees from the Group’s headquarters, logistics centres and subsidiaries participated. The process included a detailed analysis of payroll data, anonymous surveys, and interviews with employees, senior management and the HR team. The audit confirmed that Żabka’s gender pay gap remains below 5% – significantly lower than the EU average of 12.7% and the Polish average of 7.8%.

Żabka first achieved EQUAL-SALARY certification in 2022, becoming the first Polish retail company to do so. The certification is valid for three years, after which companies must undergo re-evaluation to confirm ongoing compliance. Żabka’s successful re-certification demonstrates its continuous monitoring and improvement of pay processes.

Empowering Growth for All

–  Diversity and equality are key to building our competitive advantage – they drive us forward and enable our growth. Being re-awarded the EQUAL-SALARY certification confirms that at Żabka, pay truly has no gender. It’s an important signal that we are creating an environment where everyone has equal opportunities for development and influence. This is what responsible leadership means to us – Jolanta Bańczerowska, Management Board Member, Chief People Officer, Żabka Group.

The certification not only validates Żabka’s high internal standards, but also represents a strong voice in the broader dialogue on pay equality in business.

– This year is particularly important for pay equality and workplace diversity, as new Polish and EU regulations are coming into effect. It is encouraging to see companies like Żabka that have long embedded equality into their culture and continue to uphold these values in practice. Such examples set a positive benchmark for other employers who are just beginning their journey – Katarzyna Komorowska, Partner, PwC Polska.

Responsible Business in Action

Żabka Group’s business strategy is deeply intertwined with its cultural foundations, forming the pillar of a “Responsible Organisation.” Objective pay criteria – such as skills, performance, and impact on the organisation – strengthen a culture of accountability and trust, attract top talent, and foster engaged teams. The company upholds the principles of equal treatment, respect for individuality and diversity, recognising these as strategic assets that fuel innovation and strengthen competitive advantage.

Robust growth, supported by strong margins and the attractiveness of its business model is driving exceptional cash generation, enabling accelerated debt reduction and the launch of profit distribution 

The Group has updated its strategy to reflect accelerated network development and a clear commitment to profit distribution. Zabka now expects to open more than 1,300 new stores annually between 2025 and 2028, compared with its earlier guidance of 1,300 in 2025 and 1,000 in subsequent years. By the end of 2028, Żabka aims to operate roughly 16,000 outlets, about 1,500 more than forecast at the time of its IPO last year. This momentum is fueled by the strong performance of newly opened stores and a secured pipeline of high-quality sites in Poland and Romania. The Group also reiterate its IPO guidance, including the ambition to more than double end-customer sales between 2023 and 2028, reinforcing its leadership in the modern convenience segment. 

Supported by exceptional cash generation and a swift reduction in leverage, the Group expects to reduce its net debt to adjusted EBITDA post-rent ratio to fall to around to 1.0 times in the near term, in line with previous guidance. Other key IPO financial targets, including mid- to high-single-digit like-for-like (LfL) growth, an EBITDA margin at the upper end of the targeted 12–13% range, and an improvement in adjusted net profit margin to 4.5% in the midterm, were maintained. 

Under the Capital Allocation Policy approved today, the Board of Directors intends to recommend distributing 50% of 2025 net profit in the form of dividends, and 50–70% of net profit in subsequent years, subject to market conditions and planned investments. In the longer term, the Group may also launch share buyback programmes. 

 Tomasz Suchański, CEO of Żabka Group, commented: 

Żabka Group, as set out at its 2024 Warsaw Stock Exchange debut, is pursuing a rapid expansion strategy underpinned by solid finances and improving margins. We now expect to operate around 16,000 stores across Poland and Romania by end‑2028—approximately 1,500 more than indicated at listing. At the same time, we have revised our growth potential (the so-called whitespace), which currently amounts to around 27,000 locations across Poland and Romania. The newly approved Capital Allocation Policy is designed to strike a balance between reinvesting in growth and delivering regular profit-sharing through dividends. Payout levels will be adjusted in line with market conditions and the Group’s investment priorities. Over the longer term, Żabka may also consider share buybacks, always with a focus on creating long-term value and ensuring stable returns for investors. 

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

Żabka Group is entering a new phase of its growth trajectory, pairing rapid expansion in Poland and Romania with a focus on shareholder returns through dividend payout. The strategy rests on sustained organic growth, driven by network enlargement, resilient like-for-like performance and the scaling of its digital ecosystem. By reinforcing its competitive edge, innovating across its product portfolio and maintaining disciplined capital allocation, the group aims to more than double end-customer sales between 2023 and 2028. The ambition underscores Żabka’s determination to cement its leadership in the modern convenience segment. 

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

Żabka Group continues to deliver robust growth and strong cash generation. As a result, since our stock market debut, we have been able to significantly reduce our leverage, reaching our target net debt to EBITDA post-rent ratio of c. 1.0x faster than initially anticipated. At the same time, we have successfully optimized our sources of financing, decreasing our effective cost of capital. Consequently, we are pleased to announce the introduction of a new capital allocation policy, which includes dividend payout. With this step, Żabka Group joins the ranks of an elite group of blue chip companies that combine dynamic growth with a commitment to sharing profits with shareholders. 

Key highlights of the Żabka Group’s new Capital Allocation Policy 

• The Group plans to accelerate expansion, targeting more than 1,300 new store openings each year from 2025 to 2028, compared with the previous goal of over 1,300 openings in 2025 and over 1,000 annually in 2026–2028. By the end of 2028, the network is expected to reach around 16,000 locations in Poland and Romania, roughly 1,500 more than projected at the time of the IPO. The faster rollout reflects solid sales performance at new stores, rising demand for modern convenience formats, and availability of attractive locations in both markets. 
• At the end of June 2025, the Żabka Group network – Europe’s largest convenience chain – comprised 11,793 outlets in Poland and Romania, an increase of 10.8% from 10,640 a year earlier. Updated expansion plans put the potential of the combined Polish and Romanian markets at nearly 27,000 stores, meaning the Group could ultimately double the size of its network in the long term. 
• While mergers and acquisitions may be considered to support core business development, the Group’s focus remains on organic growth. 
• In the near term, the Group aims to reduce its net debt to consolidated adjusted EBITDA post-rent ratio to 1.0x. At the end of the first half of 2025, the ratio stood at 1.2x (down from 2.1x at the end of 2023). Medium- and long-term plans include maintaining moderate leverage and an adequate liquidity buffer to preserve operational flexibility. 
• Provided leverage remains around 1.0x and liquidity stays at a safe level, the Board of Directors intends to recommend distributing dividend equal to 50% of consolidated net profit for the prior year starting with results for 2025. In subsequent years, the dividend may range from 50% to 70%, depending on market conditions and investment plans. 
• The Board of Directors may recommend a higher payout if the Group reports one-off earnings, or a lower or no dividend if significant investments, including mergers and acquisitions, are planned for a financial year. 
• Under Luxembourg law, the dividend amount recommended by the Board of Directors may not exceed the Company’s net profit for the previous financial year plus distributable reserves and retained earnings, after deducting past losses and mandatory reserve allocations. 

The Żabka Group has announced the execution of a new agreement for credit facilities worth the equivalent of PLN 3.5 billion, maturing in 2031. The agreement provides for lower credit margins compared with the previous facilities. 

The funds will be used mainly to refinance all liabilities under the existing senior credit facility, to finance or refinance working capital, and for general corporate purposes of Żabka Group companies. 

Given its strong cash position, the Company has also decided to make a voluntary full repayment of a PLN 74.7 million credit facility contracted by subsidiary Zabka Automatic Logistics, and to reduce the Group’s senior debt by a total of EUR 82.5 million. By bringing down its exposure under EUR-denominated credit lines, the Company has at the same time limited its foreign exchange risk.

Combined with the lower credit margin, these steps will translate into reduced interest payments on debt in the periods ahead.

In addition, under the new senior credit facility agreement, the bond issuance cap for Group companies has been raised to PLN 2 billion, within existing debt limits. 

Tomasz Suchański, CEO of Żabka Group, commented:

“At the time of our IPO, we committed to reducing our financing costs – and we are consistently delivering on that commitment. A major milestone in optimising our financing structure was the bond issue we completed a few months ago, which attracted very strong investor interest. The bonds were listed on the Catalyst debt market. Today’s syndicated credit facility agreements are another important step in strengthening our capital structure.” 

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

“We continue to focus on optimising our financing structure to diversify funding sources and reduce costs. After the IPO, we negotiated lower margins on our existing syndicated credit facilities and then partially repaid the borrowings through the issue of sustainability-linked bonds with an attractive margin of 150 basis points. In recent months, our priority has been refinancing the syndicated credit facility. The senior credit facility agreement signed today marks another key step towards bringing down our debt servicing costs and further strengthening our cash position. We are also very pleased with the strong interest in financing the Żabka Group, which demonstrates both the excellent cooperation with our lenders and the trust they have placed in us. We would like to take this opportunity to sincerely thank all our lenders for their trust, support and contribution to the continued growth of our business.” 

Key details of the senior credit facility agreements:

• The agreement was signed between Żabka Polska sp. z o.o. as borrower and guarantor, Zabka Group and Zabka International S.à r.l. as guarantors, and ING Bank N.V., London Branch, acting as agent and security agent, together with a syndicate of financial institutions as lenders. 
• The agreement provides for credit facilities totalling PLN 3,269 million and EUR 63 million, maturing in 2031.
• The loans will bear interest at floating rates, based on the WIBOR reference rate for PLN-denominated facilities and EURIBOR for EUR-denominated facilities, plus a fixed margin. The margin may be adjusted depending on changes in financial ratios and achievement of sustainability targets specified in the credit facility agreement. 
• Disbursement of the funds is subject to standard conditions precedent customary for transactions of this type.

Marked growth in scale, improved margins, and continued deleveraging

Żabka Group maintains its strong growth trajectory. As at 30 June 2025, our network comprised 11,793 stores, an increase of close to 11% YoY. We are now planning to step up expansion, with more than 1,300 new store openings targeted in Poland and Romania for full-year 2025, an upward revision from our original target of 1,100 openings.

Despite a high comparative base from Q2 2024 and unseasonably cold weather in May, like-for-like (LfL) sales rose by 6.1% during the first half of 2025. Continued expansion of our digital consumer offering (DCO), coupled with our stronger market position in Romania, further supported sales momentum. Consequently, consolidated sales to end customers reached PLN 14.8 billion, a year-on-year increase of 14.4%, while revenue totalled PLN 12.8 billion (up 14.7%).

Ongoing network expansion, solid LfL growth, and tight cost discipline led to an 18.2% increase in adjusted EBITDA, to PLN 1,654 million, for the six months ended 30 June 2025. As a result, the adjusted EBITDA margin widened by 0.4pp, to 11.2%. 

Seasonally strong cash generation in the second quarter further strengthened our financial position, reducing the net financial debt-to-adjusted EBITDA ratio to 1.2x, an improvement of 0.5x YoY.

Tomasz Suchański, CEO of Żabka Group, commented: 

“Our strong H1 2025 performance confirms that the growth strategy we presented to investors, which is built around an ultimate modern convenience ecosystem, is working. We are consistently scaling our business by adding new stores as well as expanding our digital consumer offering, both of which continue to contribute to LfL growth and total sales to end customers. We have accelerated our rollout programme, opening more than 800 outlets in the first six months of 2025 alone. This puts us firmly on track to meet our upgraded target of over 1,300 openings this year. The momentum in Romania is equally encouraging, with our Froo banner surpassing 100 stores barely a year after launch. In the near term, we will focus on achieving further efficiency gains while delivering on our strategic ambition to double sales to end customers between 2023 and 2028.”

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

“The first half of 2025, and the second quarter in particular, was another strong period for Żabka. Nielsen data show we grew more than twice as fast as the market, increasing our share to 10.6% from 9.9% a year ago. In June, we completed the roll-out of street food ovens across our entire store network, which enables us to expand our ‘Prosto z pieca’ hot-food offering nationwide. This upgrade spurred a double-digit percentage uplift in Quick Meal Solutions (QMS) sales and was a key driver of the 6.1% LfL growth achieved in H1 2025. We continue to invest in our product to anticipate and respond quickly to changing customer preferences. An expanded breakfast menu, now featuring hot items such as ham toasties and scrambled-egg paninis, achieved sales of one million units in its first month alone. In the digital world, we are making further enhancements to Żabka Ads, allowing customers to more easily discover and redeem promotions. Concurrently, we have significantly broadened our q-commerce offering: our new delio+ platform now lists more than 10,000 SKUs available for rapid delivery. For full-year 2025, we expect solid mid- to high-single-digit LfL growth, driven by ongoing innovation and continued DCO development, which will allow us to further strengthen our leadership in modern convenience.”

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

“Robust sales growth, which generated clear economies of scale, had a positive impact on our gross margin performance. Combined with tight cost control, this translated into a 20% increase in adjusted EBITDA in the second quarter, with the adjusted EBITDA margin expanding by 0.6pp, to 13%. Free cash flow rose 15% on the back of disciplined capital allocation and ongoing cost efficiencies. Seasonally strong cash generation in the second quarter further strengthened our financial position, reducing the net financial debt-to-adjusted EBITDA ratio to 1.2x, down 0.5x YoY. These results provide a solid foundation to maintain our full-year adjusted EBITDA margin within the 12–13% range and to improve our adjusted net profit margin to around 3% in the near term.”

Żabka Group’s performance highlights as at 30 June 2025:

• Revenue for the first half of 2025 rose by 14.7%, to PLN 12.8 billion. In the second quarter alone, revenue increased by 16.2%, to PLN 7.1 billion. This result reflects solid organic growth, driven by strong LfL sales and the continued expansion of our store network and DCO.
• Sales to end customers reached PLN 14.8 billion, a year-on-year increase of 14.4%. In the second quarter, sales grew by 14%, to PLN 8.1 billion.
• Like-for-like sales rose by 6.1% in both H1 and Q2 2025, despite the strong comparative base from Q2 2024 and unseasonably cool weather in May. This increase was largely driven by commercial innovation and an expanded product range, particularly in the QMS segment.
• A stronger gross profit margin, combined with disciplined cost management, drove a 20.1% year-on-year growth in adjusted EBITDA in the second quarter, to PLN 1,057 million. For the full six months ended 30 June 2025, adjusted EBITDA grew by 18.2%, to PLN 1,654 million. The adjusted EBITDA margin improved to 13% for the second quarter alone (vs. 12.4% a year earlier) and to 11.2% for the first half of 2025 (vs. 10.9% in the prior year).
• As at 30 June 2025, the Żabka Group network – Europe’s largest convenience chain – comprised 11,793 outlets in Poland and Romania, an increase of 10.8% from 10,640 a year earlier. The second quarter alone saw 368 new store openings. According to the IPO guidance, total market capacity is estimated at nearly 19,500 stores in Poland and approximately 4,000 in Romania, which highlights substantial headroom for further expansion.
• DCO sales to end customers grew by 26% in the first half of 2025 (28% in Q2 alone), making a meaningful contribution to the Group’s overall performance and bringing us closer to the IPO target of a five-fold increase in DCO revenue by 2028. Key drivers included the refinement of Żabka Ads and the expansion of our q-commerce range, which now comprises more than 10,000 SKUs on our delio+ platform.
• Adjusted net profit for the first half of 2025 came in at PLN 144 million, an increase of 82.9% year on year. In the second quarter alone, the figure was PLN 221 million, up 25.5% from PLN 176 million a year earlier. 
• Free cash flow totalled PLN 1,165 million in the six months to 30 June 2025, vs. PLN 1.26 billion in the corresponding period last year. In the second quarter, free cash flow rose by over 14%, to PLN 1,074 million, driven by disciplined spending and sustained cost efficiencies.
• Capital expenditure amounted to PLN 740 million in the first half of 2025, a year-on-year increase of 14.7%. Investments included network expansion and store upgrades, notably the roll-out of food-service ovens, which enabled the launch of our new street-food offering.
• Żabka Group continued to deleverage: as at 30 June 2025, the net financial debt-to-adjusted-EBITDA ratio stood at 1.2x, an improvement of 0.5x over recent months. The Group intends to reduce leverage further. 

Key figures for H1 and Q2 2025

Selected KPIs and performance metrics
(all margins calculated in relation to Sales to End Customers)

Share buy-back

As per the current report dated 31 July 2025, the Zabka Group Board of Directors approved a share buy-back programme to meet the obligations arising under the 2025–2027 Long-Term Incentive Plan (LTIP), as communicated at the time of our IPO. The programme will commence in August and will cover up to 4.2 million shares. 

The buy-back will be executed on the regulated market in accordance with the MAR requirements. The Trigon brokerage house has been appointed to manage the programme.

The LTIP is designed to strengthen the long-term commitment of key personnel by aligning incentives with long-term value creation, including EBITDA growth, sales to end customers, and ESG indicators.

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.”