Eurocash trader targets PLN 600 mln normalised EBIT in 2027 in new strategy

"The management board estimates that in the years 2026-2027, the cumulative increase in cost efficiency will amount to PLN 400 million at the EBIT level and will result from the optimization of the Eurocash Group's processes and structure, supply chain (logistics) and the restructuring of its own stores" the release reads.

The management board anticipates that in connection with its savings initiatives, the Eurocash Group will reduce its employment by approximately 3,000 employees, including nearly 1,000 administrative and office employees (white-collar positions), it added.

"Given the decision of the management board of the company to focus on franchise activities, non-strategic activities (which include the Delikatesy Centrum own stores segment) will be significantly reduced, resulting in the cessation of operations of about 150 stores operated by Delikatesy Centrum sp. z o.o." the company also reported.

In connection with the implementation of the strategy, the management board estimates making one-off write-offs and creating a restructuring provision in the range of PLN 200-300 million, consisting primarily of write-offs related to: (i) the cessation of operations of about 150 Delikatesy Centrum own stores, (ii) supply chain optimization (including the reduction of logistics centers and cash & carry warehouses) and (iii) the reduction of employment in the Eurocash Group.

"In connection with the abovementioned intention to create the one-off restructuring provision, EBITDA (after IFRS16) for 2025 will be reduced by the amount in the range of PLN 200-300 million in the financial statements for financial year 2025," the release added.

Eurocash also said it aimed at maintaining and strengthening its position as the third largest player on the domestic FMCG market.

pel/ ana/ tom/