Trading giant shows results, investors dump shares

Eurocash Group is the largest Polish wholesale distributor of FMCG products, organizer of franchise networks such as ABC, Delikatesy Centrum, Groszek, Gama, Duży Ben, Lewiatan and Euro Sklep. The Group is valued on the WSE at approximately PLN 1.4 billion.

Unfavorable market conditions and almost PLN 90 million of quarterly net loss

In the first quarter of 2025, the Eurocash Group generated PLN 6.9 billion in revenue, down almost 8 percent year-on-year. EBITDA (operating profit plus depreciation and amortization) amounted to PLN 121 million (with EBITDA profitability at 1.8 percent), while net loss was at a similar level as a year ago and amounted to PLN 87 million.

The negative sales dynamics were mainly due to an unfavourable calendar effect and a shift in sales resulting from an increase in excise tax on alcohol and tobacco products, the company reported.

- The first quarter was in line with our expectations. Revenues and results were affected by the postponement of Easter to the second quarter and the increase in excise duty on alcohol and cigarettes, which resulted in the postponement of purchases of these goods to the previous and next quarter, respectively. The increase in the minimum wage by 9% also had an impact on the costs side. Despite this, the result and our market share were maintained at a similar level to the first quarter of 2024 - said Piotr Nowjalis, member of the management board and CFO of Eurocash Group.

In the first quarter of 2025, Eurocash closed 19 Delikatesy Centrum stores and 40 Duży Ben stores.

Eurocash shares on sale after quarterly results publication

Investors could not remain indifferent to such poor results. Their reaction is telling, Eurocash is the biggest loser on Thursday (15 May) on the entire main market of the Warsaw Stock Exchange.

In the second part of the session, the rate falls by over 12 percent below the level of PLN 10, deepening the monthly minimum. The declines occur at very high turnover, reaching PLN 15 million.

However, year-to-date, Eurocash shares remain at a relatively high level, with an increase of almost 40%.