Zabka grocer upholds LFL sales target despite poor weather in July

"We are confident that LFL will be in line with our outlook for the whole year, even taking into account the weather in July," Zabka's CFO Marta Wrochna-Lastowska told the press conference, declining to comment further on the group's sales in the third quarter.

Both in the second quarter and in the entire first half of 2025, Zabka LFL sales increased by 6.1 percent despite the high base from the second quarter of 2024 and unusually cool weather in May.

According to the group, this growth was largely due to innovations in the commercial area and the development of a new product range, especially in the ready-made meals segment (QMS).

For the whole of 2025, the group expects LFL sales growth in the mid to high single-digit percentage range.

Sales revenue in the Zabka group in the first half of 2025 increased by 14.7 percent to PLN 12.8 billion (EUR 3 bln). In the second quarter alone, revenue increased by 16.2 percent to PLN 7.1 billion (EUR 1.66 bln).

Adjusted EBITDA in the second quarter increased by 20.1 percent year on year to PLN 1.057 billion (EUR 247.13 mln). In the entire first half of 2025, it increased by 18.2 percent to PLN 1.654 billion (EUR 386.7 mln).

The adjusted EBITDA margin increased to 13 percent in the second quarter (against 12.4 percent in the prior year period) and 11.2 percent in the entire half-year (versus 10.9 percent a year earlier).

The group also maintained its outlook for 2025, assuming that the adjusted EBITDA margin will remain at the upper end of the 12-13 percent range and that the adjusted net profit margin will further improve to around 3 percent in the short term.

Zabka Group plans to accelerate its expansion and launch over 1,300 new stores in Poland and Romania in 2025, compared to earlier plans for 1,100 openings.

"We made this decision based on a solid foundation of new locations and the excellent results achieved by our newly opened outlets," said CEO Tomasz Suchanski.

As reported, together with the openings in the first half of 2025, the company has secured 1,250 locations in Poland for the entire year and an additional 483 for the following years. The number of new franchise partners acquired in the last 12 months increased by 17 percent year on year to 2,551.

At the end of June 2025, the Zabka Group's network comprised 11,793 stores in Poland and Romania, representing a year-on-year increase of 10.8 percent. In the second quarter alone, 368 new stores were opened.

When asked about a potential retail tax that could apply to franchise chains, Zabka's CEO replied: "We will respond and participate in the discussion through industry organisations if such a project is proposed. It should be remembered that the structure of this tax was previously discussed and consulted on very intensively, and it was not intended to apply to small shops."

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