Żabka Group successfully executes its strategy in the first quarter.

Żabka Group successfully executes its strategy in the first quarter.

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.

Annual Report 2024

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Annual Report 2024

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