Slides
Page 1
EUROCASH GROUP 2Q'25 & 1H'25 Results Presentation 28 August 2025
Page 2
Eurocash Group 2Q'25 Highlights 2 ▪ Market Conditions: In 2Q'25, market conditions remained challenging, with significantly weaker dynamics in the beer, alcohol, and tobacco categories due to changes in consumer behaviour and excise tax increases. ▪ The Eurocash Wholesale Relevant Market decreased by 3.5% y/y, while Group revenues declined by only 1.2% y/y (pressured by Cash & Carry and Delikatesy Centrum stores but supported by ECS), demonstrating resilience. ▪ Strong cost discipline translated into EBIT growth of 24% y/y to PLN 82m. Franchise store loyalty continued to strengthen, with nearly +1.5 p.p. improvement in 1H'25. ▪ Profitability: The adj. EBITDA margin expanded to 3.0% (from 2.7% in 2Q'24), supported by PLN 52m cost savings in 1H'25, despite continued labour cost inflation. ▪ Working Cap: Significant improvement in inventories, confirming progress on our WC optimisation roadmap. ▪ Growth platforms (Frisco and Duży Ben) continue to narrow losses step by step and reached break-even for the first time ever in the segment. Frisco remains on track to reach break-even next year. ▪ Soft Franchise: Positive LFL growth of +1.1% across the entire franchise network in 2Q’25, with a stable share in Total Market (app. 8%) and an increasing share in the WRM (31.6% in 2Q’25 vs. 28.8% in 2Q’24). In 1H'25, the number of soft-franchise stores increased by 428 vs. year-end 2024. ▪ November 2025 Strategy publication – we believe that, given Frisco’s progress towards break-even, the performance of ECS, and the strong cash generation within our franchisee model, the current market capitalization does not fully reflect the underlying sum-of-the-parts value of the Group.
Page 3
Market Overview 1H’24 1H’25 4% 8% -2% 6% 10% -3% Total market dynamics Discounters WRM dynamics Market Dynamics by Channels Source: Eurocash based on CRM Panel 3 ▪ Total Market Dynamics: the total market grew by 6% y/y in 1H’25 (+6% y/y in 2Q'25), driven primarily by discounters +10% y/y in 1H’25 (+11% y/y in 2Q25) ▪ The Eurocash Wholesale Relevant Market (WRM) declined 3% y/y in 1H’25 (-3.5% y/y in 2Q25), impacted by lower transaction volumes due to changes in consumer behavior and excise tax increases on alcohol and tobacco (1H25: beer -3% y/y in TM and -13% y/y in WRM; alcohol (excl. beer) +1% y/y in TM and -5% y/y in WRM, tobacco – despite excise driven price growth of ca. +17%, the TM grew only by 8% y/y and WRM +3% y/y) ▪ Eurocash Franchise Chains: the market share remained stable in Total Market, but the WRM's share in the Total Market is gradually declining Alcohol Beer Tobacco 1% -5% -3% -13% 8% 3% Category sales dynamics in 1H’25 WRM vs Total Market Share of Soft-Franchise Chains and WRM in Total Market 3% 0% 2% 1% 2% 29% 1H’23 3% 0% 2% 1% 2% 27% 1H’24 3% 0% 2% 1% 2% 25% 1H’25 8% 8% 8% ABC EUROSKLEP GROSZEK PSD LEWIATAN G9 Share of WRM in Total Market Presentation of 1H2025 Results
Page 4
2Q'25 Results Summary Presentation of 1H2025 Results ▪ Sales: In 2Q’25, Eurocash's sales declined by 1.2% y/y, driven by weaker performance in C&C and Delikatesy Centrum stores, primarily due to declines in key categories (beer, spirits) and changes in consumer behaviour ▪ EBITDA: The adj. EBITDA margin improved by 20 bps y/y, supported by cost savings, partly offset by non-recurring costs related to store closures ▪ Non-recurring items: There was a PLN 9.0m one-off impact from portfolio optimisation measures, mainly linked to the closure of underperforming Delikatesy Centrum stores (19 in 2Q'25, in addition to 16 in 1Q’25). Expected annualised savings of ~PLN 19m, including an additional PLN 8.6m benefit from closures executed in 2Q’25 ▪ Net Profit remains stable y/y, demonstrating resilient bottom-line performance despite external headwinds. Net profit was burdened by a PLN 4m negative impact from FX movements (related to IFRS16) 4 219 230 0 100 200 300 2.7% 2Q’24 9 3.0% 2Q’25 239 Non-recurring items Reported EBITDA Adj. EBITDA Margin 5 -10 -5 0 5 10 15 20 0.1% 2Q’24 0.0% 2Q’25 2 Net Profit (Loss) Net Margin Adjusted EBITDA Net result on continued operations 0 -4 TOTAL Net Loss (PLNm)(PLNm) 7 982 7 886 0 2 000 4 000 6 000 8 000 12.9% 2Q’24 12.8% 2Q’25 -1.2% Sales and Gross margin Sales Gross Margin Net Result
Page 5
2Q'25 Sales dynamics by Segements and Business Units Presentation of 1H2025 Results ▪ Wholesale: sales declined by 1.4% y/y in 2Q'25. EC Service grew by 5.7% y/y, supported by higher tobacco sales following the excise tax increase. However, C&C and ECD sales were negatively affected by market conditions and adverse consumption, particularly in the beer category ▪ Retail*: sales were down by 2.3% y/y. Own & JV stores reported flat sales, while LFL sales in Own stores up by 3.1%, outperforming JVs and franchised stores ▪ Growth Platforms: sales increased by +9.6% y/y, driven by Frisco (+25% y/y) and Duży Ben (+2.4% y/y). However, their overall contribution to the Group remains limited 5 2 712 2 868 1 947 1 845 1 215 1 076 86 2Q’24 90 2Q’25 Cash&Carry EC Service EC Distribution Other 5 960 5 879 -5.3% +5.7% -11.5% -1.4% 1 080 1 076 670 634 2Q’24 2Q’25 DC Franchise DC Own + JVs 1 750 1 710 -0.3% -5.4% -2.3% 123 154 114 117 16 2Q’24 7 2Q’25 Other Projects Duży Ben Frisco 253 277 25.0% 2.4% +9.6% Wholesale Segment Retail Segment* Growth Platforms *Inmedio after deconsolidation is not presented
Page 6
2Q'25 EBITDA by Segments Presentation of 1H2025 Results 6 Wholesale EBITDA in 2Q 2025 Retail EBITDA in 2Q 2025 186 198 0 50 100 150 200 3.1% 2Q’24 3.4% 2Q’25 EBITDA EBITDA margin % 74 57 9 0 30 60 90 4.2% 2Q’24 3.8% 2Q’25 66 Non recurring items EBITDA Adj.EBITDA margin % -5 2 -8 -6 -4 -2 0 2 -1.9% 2Q’24 0.6% 2Q’25 EBITDA EBITDA margin % Growth Platforms EBITDA in 2Q 2025 ▪ Wholesale: in 2Q'25, EBITDA margin increased by 30 bps y/y to 3.4%, despite lower sales performance. This improvement was supported by a strong focus on margin management and cost discipline ▪ Retail: EBITDA in retail segment was negatively impacted by store portfolio optimisation, resulting in a one-off impact of PLN 9.0m in 2Q'25 (and 16.1 m in 1H'25) ▪ The Growth Platforms segment experienced a positive turnaround for the first time, with EBITDA improving to PLN +2m in 2Q'25 from a negative of PLN -5m in 2Q'24
Page 7
Growth Platforms Segment: first-ever break-even at EBITDA level Presentation of 1H2025 Results 7 Sales 2Q'25: +25% y/y Sales 2Q25: +2% y/y #395 Stores in 2Q25: -24 net stores YoY • 1Q’25 40 closures / 6 openings • 2Q’25 1 closure / 4 openings Active customers: +11% y/y Orders +12% y/y Average Basket in 2Q25: +8% y/y ▪ Frisco: Strengthening customer loyalty and acquisition, while optimizing operations at the new Warsaw warehouse LFL 2Q25: +6% EBITDA: Negative contribution improved vs. last year, turning positive in 2Q'25 ▪ Duży Ben: driving decent store-level sales and disciplined profitability improvements Sales development (PLNm) 217 278 384 434 533 123 154 2020 2021 2022 2023 2024 2Q’24 2Q’25 23% 25% 114 182 296 411 481 114 117 2020 2021 2022 2023 2024 2Q’24 2Q’25 17% 2% Sales development (PLNm)
Page 8
Frisco: Expansion into Łódź and stable growth across Poland Presentation of 1H2025 Results 8 • Expansion into the Łódź metropolitan area and surroundings: • Hundreds of thousands of new potential customers • All-day delivery, 6 days a week, with an assortment of nearly 15,000 SKUs • Stable growth of Frisco in 1H'25:
Page 9
Cash Conversion and Net Financial Expenses Presentation of 1H2025 Results 9 The Cash Conversion Cycleimproved y/y, in line with the company's working capital (WC) optimisation focus. Additional inventory was built ahead of the excise tax increase in 4Q’24 and 1Q’25, which was financed through extended payment terms The Net Financial Expenses are broadly in line with historical trends, reflecting seasonal working-capital fluctuations and remaining within expected levels 15 14 14 15 14 20 19 24 22 17 -22 -22 -28 -28 -25 -57 -55 -66 -65 -56 2Q24 3Q24 4Q24 1Q25 2Q25 Receivables Inventory Cash Conversion Liabilities Cash conversion cycle in 2024 -2025 -58 -56 -54 -58 -60 20 10 15 13 13 -38 -46 -39 -45 -46 2Q24 3Q24 4Q24 1Q25 2Q25 Financial expenses Financial income Net financial expenses Net financial expenses in 2Q'24 -2Q'25 (Pre -IFRS16)days PLN m
Page 10
Net debt ratio evolution Presentation of 1H2025 Results 10 ▪ Net Debt / EBITDA: 0.89x pre-IFRS16 and 2.56x post-IFRS16 in 2Q’25, showing a sequential improvement vs. 1Q’25 (1.12x / 2.71x). Both ratios remain at a comfortable level. ▪ Balance Sheet Strength: solid financial discipline maintained, with net debt reduced to PLN 368m pre-IFRS16 (PLN 2,376m post- IFRS16), supported by effective working capital management. Net debt/EBITDA ( pre-IFRS16) Net debt/EBITDA ( post-IFRS16) PLNm PLNm 523 423 362 260 448 368 549 0.95 1Q24 487 0.87 2Q24 425 0.85 3Q24 417 0.63 4Q2024 400 1.12 1Q 2025 415 0.89 2Q 2025 12M adjusted EBITDA (m PLN) Net debt (m PLN) Net debt/EBITDA 2 617 2 376 1 039 2 696 2.59 1Q24 996 2.63 2Q24 934 2 500 2.68 3Q24 934 2 365 2.53 4Q2024 921 2 495 2.71 1Q 2025 930 2.56 2Q 2025 12M adjusted EBITDA (m PLN) Net debt (m PLN) Net debt/EBITDA
Page 11
Key Financials 2Q'25 PLN million 2Q 2025 2Q 2024 Change %* Sales revenues (traded goods. materials) 7 886,48 7 982,31 -1,20% Gross profit on sales 1 012,67 1 029,44 -1,63% Gross profitability margin (%) 12,84% 12,90% -0,06 p.p. EBITDA 229,54 218,62 5,00% EBITDA margin (%) 2,91% 2,74% 0,17 p.p. Adjusted EBITDA 238,54 218,62 9,11% Adjusted EBITDA margin (%) 3,02% 2,74% 0,29 p.p. EBIT 82,41 66,65 23,66% EBIT margin (%) 1,05% 0,83% 0,21 p.p. EBT (loss) 9,67 6,86 40,92% Profit (loss) for the period on continued operations 2,06 4,63 -55,60% Net margin (%) 0,03% 0,06% -0,03 p.p. Net profit (loss) on discontinued operations (6,42) (4,50) -42,46% Profit (loss) for the period (4,36) 0,13 - Presentation of 1H2025 Results 11*Differences in % change are due to rounding of financial data for presentation purposes
Page 12
1H'25 Results Summary Presentation of 1H2025 Results ▪ Sales: Eurocash’s sales decreased by 4.3% y/y in 1H’25, mainly due to changes in consumer behaviour and excise tax hikes on alcohol and tobacco, which drove volume declines in these categories ▪ EBITDA: Adj. EBITDA margin remained stable, supported by improved gross margin and operational resilience, partly offset by non-recurring costs related to store closures ▪ Non-recurring items: one-off impact of PLN 20.1m from the closure of 35 Delikatesy Centrum and 40 Duży Ben stores in 1H25. Inmedio results excluded post-deconsolidation ▪ Net Profit (Loss): Net loss in line with the prior year, reflecting stable bottom-line performance despite external headwinds 12 355 351 0 160 320 480 2.3% 1H24 20 2.5% 1H’25 371 Non-recurring items Reported EBITDA Adj.EBITDA Margin -74 -80 -200 -150 -100 -50 0 -0.5% 1H24 -0.5% 1H’25 Net Profit (Loss) Net Margin Adjusted EBITDA Net result on continued operations -87 -91 TOTAL Net Loss (PLNm)(PLNm) 15 419 14 760 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 13.0% 1H24 13.2% 1H’25 -4.3% Sales and Gross margin Sales Gross Margin Net Result
Page 13
Cost Analysis: 1H'25 Presentation of 1H2025 Results 13 ▪ Total Costs: decreased by 2.7% YoY (in 1H'25 PLN 52m lower costs y/y), driven mainly by: ▪ Salary expenses –9.7% y/y, reflecting efficiency initiatives and the conversion of own stores to agency model ▪ Third-party services +10.2% y/y, due to conversion of own stores to the agency model (Delikatesy Centrum) ▪ Other cost categories remained under strict discipline 1 964 1 663 1 912 1 615 Total Costs Costs w/o depreciation -2.7% -2.9% 872 564 151 44 32 788 622 136 42 27 Salaries & Social sec. Third-party services Materials and enegry Taxes and fees Other costs -9.7% +10.2% -9.8% -3.5% -15.3% 1H 2024 1H 2025 1H 2025 - Total Costs Dynamics 1H 2025 – Costs by Type Analysis PLN mPLN m
Page 14
Key Financials 1H'25 PLN million 1H 2025 1H 2024 Change %* Sales revenues (traded goods. materials) 14 760,26 15 418,80 -4,27% Gross profit on sales 1 952,44 2 000,07 -2,38% Gross profitability margin (%) 13,23% 12,97% 0,26 p.p. EBITDA 350,62 355,14 -1,27% EBITDA margin (%) 2,38% 2,30% 0,07 p.p. Adjusted EBITDA 370,68 355,14 4,38% Adjusted EBITDA margin (%) 2,51% 2,30% 0,21 p.p. EBIT 53,54 54,13 -1,10% EBIT margin (%) 0,36% 0,35% 0,01 p.p. EBT (loss) (81,24) (69,27) -17,28% Profit (loss) for the period on continued operations (80,05) (74,05) -8,09% Net margin (%) -0,54% -0,48% -0,06 p.p. Net profit (loss) on discontinued operations (11,45) (13,10) 12,63% Profit (loss) for the period (91,50) (87,16) -4,98% Presentation of 1H2025 Results *Differences in % change are due to rounding of financial data for presentation purposes 14
Page 16
Thank you!