Żabka Group 2025 performance – net profit exceeds PLN 1 billion as expansion accelerates and key metrics reach strategic growth targets

Żabka Group 2025 performance – net profit exceeds PLN 1 billion as expansion accelerates and key metrics reach strategic growth targets

In 2025, the Żabka Group outpaced the market, consistently increasing its retail market share. Consolidated Sales to End Customers rose 14.1% YoY to PLN 31.1 billion. Like-for-like (LfL) growth in Poland was 5.3%, in line with the Group’s mid-single-digit target. This was achieved despite unfavourable weather conditions, confirming the appeal of the retail offering and its fit with customer expectations.

Adjusted EBITDA reached PLN 4.07 billion, up 16% YoY, driven by accelerated network rollout, higher sales, cost discipline, and the improved profitability of the Digital Customer Offering (DCO). Adjusted Net Profit rose 40.6% to a record PLN 1.0 billion, with the Adjusted Net Profit margin reaching 3.2%, ahead of the 3% guidance.

In 2025, the Żabka Group launched 1,394 stores, thus exceeding the revised target of 1,300 new store openings set for the year. At year-end the Group’s retail chain comprised 12,339 outlets, including 173 in Romania, reinforcing its position as Europe’s largest modern convenience ecosystem.

Tomasz Suchański, Group CEO, commented:

The 2025 figures confirm that the Żabka Group’s strategy is delivering. We have achieved all the financial metrics communicated to investors, while also accelerating the execution of selected strategic initiatives, including the expansion of our store network. At mid-year we revised upwards our new openings guidance to over 1,300 stores in Poland and Romania, and ultimately outperformed it. Among the key drivers of this very strong result were the secured pipeline of attractive locations, sustained franchisee interest, and consistent cost discipline with a focus on unit economics. This approach enables us to scale the business in a predictable manner with a high degree of execution precision. We allocate capital selectively – where it strengthens our strategic pillars: further network expansion in Poland, disciplined build-out in Romania, and investment in digital and operational excellence.

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

Network rollout and LfL growth across Poland and Romania are consistently bringing us closer to the long-term target of more than doubling Sales to End Customers between 2023 and 2028. This growth momentum is reinforced by expanding digital businesses and stable cash flows. Our competitive advantage lies in data-driven management and high operational agility, which enable us to respond swiftly to market changes and scale at pace. We continue to refine the alignment of our offering to local customer preferences, while investing in hyper-personalisation at the store level to further enhance the resonance of each point of sale with its community. Central to this is our integrated operating platform – spanning the supply chain, category management, and advanced data and technology capabilities – which allows us to manage product availability effectively and adjust the offering dynamically. Sustainability remains an integral part of this model: ESG excellence is embedded both in our strategy and day-to-day operations. This strategy is also delivering results in Romania, where the Froo network is consistently scaling up and strengthening its market position.

Marta Wrochna-Łastowska, Group CFO, added:

Disciplined capital allocation and a focus on operational efficiency enabled us to reduce leverage effectively and – relying on the scalability of our business model – to upgrade the store-openings target. Despite a more challenging market environment, we improved margins and financial flexibility.  Adjusted EBITDA grew 16% YoY in 2025, with a margin of 13.1%, which is above our previously communicated guidance of 12–13%. This improvement was driven by continued focus on product-margin enhancement, cost discipline, operating leverage, and the profitability of the Digital Customer Offering. Adjusted Net Profit improved even more markedly, rising 40.6%. The Adjusted Net Profit margin expanded to 3.2%, ahead of the previously communicated 3% target. Last year, we also worked intensively on improving our financing structure. In May, we carried out our first bond issue worth PLN 1 billion, and in the autumn we successfully refinanced our credit agreement, resulting in a reduced margin and an extended maturity. All these steps increased our financial flexibility and contributed to lowering the cost of debt. In line with our latest guidance, we reiterate our expectation of mid to high-single-digit LfL growth for the full year 2026, with variability between quarters, and the same range over the medium term. We expect our adjusted EBITDA margin to remain stable at the top end of the 12–13% range, alongside a gradual improvement in the net income margin toward approximately 4.5% over the medium term.

Key performance highlights for FY 2025:

• Sales to End Customers reached PLN 31,135 million, up 14.1% YoY. In Q4 2025 alone, Sales to End Customers amounted to PLN 7,867 million (+14.3% YoY).
• Revenue totalled PLN 27,153 million (+14.1% YoY). In Q4 2025 alone, revenue rose 14.0% to PLN 6,922 million.
• Top-line growth was driven by a combination of LfL growth and the rapidly expanding store base.
• Thanks to the high availability of attractive locations in Poland and accelerated expansion in Romania, at year-end 2025 the Żabka Group’s retail chain – Europe’s largest convenience network – comprised 12,339 stores following 1,394 gross new openings (+19.6% YoY). In Romania, where the Group operates under the Froo brand, the number of stores at the end of the period grew 188% YoY to 173 locations, with customer traffic approaching levels observed in Poland. As per the updated strategy unveiled in 2025, the revised annual target for new store openings across Poland and Romania is over 1,300 stores. 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.
• In 2025, LfL growth was 5.3%, in line with expectations, driven by initiatives to increase footfall and basket size, despite unfavourable weather conditions. 
• Adjusted EBITDA rose 16% in 2025, to PLN 4,066 million, with the margin reaching 13.1% compared with 12.8% in 2024. The result exceeded the upper end of the 12–13% margin range set out in previously communicated guidance.  Growth was driven by increased operating scale, LfL sales, effective cost management and the profitability of the DCO, partly offset by higher franchisee costs. In Q4 2025 alone, Adjusted EBITDA came in at PLN 1,134 million (+14.9% YoY).
• By year-end 2025, the street food offering was available across all Żabka stores in Poland. A total of 622 new products were introduced (including under the GOOD MOOD brand), and the range of convenient services expanded by over 20 items. At year-end 2025, the Żabka Group had 10 million digital active shoppers. Żappka app users’ purchases averaged 20% higher compared with other customers.
• Online revenue (DCO) grew 25% in 2025, and the Group remains on track to achieve the IPO target of a fivefold increase in this revenue stream by 2028. Growth was supported by the development of existing digital services, including double-digit sales growth of the Maczfit offering, as well as the expansion of the delio, Jush! and Dietly brands. Online growth was also driven by new projects, such as Izidrop and Żabka Ads. Izidrop is an e-commerce logistics service offering competitive parcel delivery pricing in partnership with Allegro Delivery, among others. Żabka Ads, meanwhile, installed close to 6,000 screens across over 4,000 outlets, enabling the Group to reach 27 million consumers and strengthening its retail media position.
• For the first time, the Group’s net profit exceeded PLN 1 billion. In 2025, Adjusted Net Profit was PLN 1,003 million (+40.6% YoY) and Reported Net Profit was PLN 1,057 million (+78.3% YoY). In Q4 alone, the figures were PLN 354 million (+20.6% YoY) and PLN 527 million (+144.3% YoY), respectively. The record result was supported, among other things, by lower finance costs following successful refinancing efforts.
• The Adjusted Net Profit margin expanded to 3.2% in 2025, from 2.6% a year earlier, ahead of the 3% target. In Q4 alone, the margin rose to 4.5%, from 4.3% in Q4 2024.
• Free Cash Flow (FCF) totalled PLN 1,740 million in 2025, compared with PLN 1,531 million a year earlier. The increase was primarily attributable to the continued scaling of the business and higher profitability, resulting in strong Adjusted EBITDA growth and more favourable working-capital management.
• Strong cash generation funded capital expenditure (CAPEX) of PLN 1,624 million in 2025 (−3% YoY), of which PLN 539 million was incurred in Q4 (-13.5% YoY). Key investment projects included new store openings, upgrades of existing stores, and expansion of the Romanian network and digital channels as part of the New Growth Engines (NGE).
• With strong cash flow performance, the Group successfully executed its deleveraging strategy, reducing the net debt to Adjusted EBITDA ratio from 1.5× at end-2024 to the target level of 1.0× at end-2025.

Summary of Q4 2025 and full-year 2025 results

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

Sustainability highlights

In 2025, we successfully met the key ESG KPI targets across the Sustainable Lifestyle, Mindful Business Impact, Responsible Organisation and Green Planet pillars. Sales of own brand products promoting a sustainable lifestyle reached PLN 2.1 billion. The use of AI enabled closer alignment of deliveries with local consumer needs, reducing waste and potential environmental impact. Food-waste intensity in own operations fell by nearly 25% compared with 2020, with 87% of unsold products channelled for further beneficial use. Our close collaboration with suppliers resulted in a close to 92% acknowledgement rate for the Code of Conduct for Business Partners among this stakeholder group. The employee engagement score stood at 4.67 points, placing us among the top 25% of the most engaged organisations worldwide (89th percentile). The share of virgin plastic in own brand packaging was over 36%, own-operations GHG emissions fell by nearly 35% relative to the 2020 base year, and store-level Scope 3 emissions intensity decreased by 66.2% relative to the 2020 base year. From October 2025, the voluntary Deposit Return System (DRS) has been operational in virtually all Żabka stores in Poland, offering easy recycling of bottles and cans within the system’s scope. Customers receive a cash refund or a discount on their next purchase, while the proximity of stores encourages higher return rates.

The effectiveness of integrating the ESG agenda into operations and the Group’s management model has been confirmed by the highest possible AAA score in the MSCI ESG Rating. The Group was rated for the first time and immediately ranked among the top 10% of food retailers globally, which evidences that our operational and financial decisions are aligned with ESG-informed long-term value creation. The consolidated sustainability statement was prepared in accordance with the CSRD, the European Sustainability Reporting Standards (ESRS), and the EU Taxonomy for environmentally sustainable activities. It includes, among other things, a double materiality assessment and data on the Group’s environmental, social and governance (ESG) impacts. It provides a comprehensive overview of the Group’s efforts and progress in meeting the objectives defined in the ESG Framework Policy and the Responsibility Strategy.

This press release contains certain financial metrics which are not defined or specified under IFRS and therefore qualify as Alternative Performance Measures (“APMs”) in accordance with the ESMA Guidelines on Alternative Performance Measures (ESMA/2015/1415). These APMs are presented to enhance the understanding of the Group’s underlying operating performance and financial position. However, APMs should not be considered in isolation or as substitutes for measures prepared in accordance with IFRS. Alternative Performance Measures (“APMs”) constitute a significant component of an entity’s financial communication and serve as an important supplement to information presented in the financial statements. APMs are financial measures that are not defined within the applicable financial reporting framework. The APMs used in this press release include: Sales to End Customers, Adjusted EBITDA, Adjusted Net Profit, CAPEX, Free Cash Flow, and Net Debt to Adjusted EBITDA. Information on their definitions and relevance is presented on the final page of this press release.