Zabka Group after FY 2024: delivering on target preliminary sales and operating results

Zabka Group after FY 2024: delivering on target preliminary sales and operating results

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

	2024	2023	4Q 2024	4Q 2023
Unaudited Consolidated Sales to end Customers (m PLN) (1) out of which:	27,281	22,775	6,889	5,833
Żabka Polska (m PLN)	26,167	22,305	6,564	5,712
New Growth Engines (m PLN)	1,114	470	325	121
Like for Like Growth („LFL”)	8.3%	10.8%	7.1%	10.6%
New store openings	1.166	1.100	169	138
No. of Stores EOP, out of which:	11,069	10,014
Romania	60	-