2025-12-12 14:40
publication
2025-12-12 14:40
On Friday, LPP's quotations reached their highest level in history after the publication of strong results for the third quarter and the revision of assumptions for the following years. The price increases by over 14%. at high revs.
On Friday, the LPP price broke above the local peaks from autumn this year and reached record levels.
Okay. time. 14:30 LPP shares are up 14.2%. up to PLN 19,930, with a turnover of over PLN 400 million. During this time, the turnover on WIG20 amounts to over PLN 1.2 billion.
Since the beginning of the year, LPP prices have increased by over 30%.
Investors reacted positively to the third quarter results published by the company on Thursday after the session. After adjusting for write-offs related to the Russian business, they turned out to be above market expectations.
In the third quarter, the group's revenues amounted to PLN 6.141 billion, and the market expected sales of PLN 6.114 billion. EBITDA amounted to PLN 918 million compared to PLN 1.157 billion a year earlier. Adjusted EBITDA amounted to PLN 1.707 billion. Analysts polled by PAP Biznes expected EBITDA of PLN 1.44 billion.
The net loss of the parent company in the third quarter amounted to PLN 18 million compared to PLN 579 million of profit a year earlier. After adjusting for the write-off regarding the Russian company Re Trading, LPP's net profit in the third quarter amounted to PLN 800 million. The PAP Biznes consensus predicted a net result of PLN 653.9 million.
“I assess the results for the third quarter very positively. I also welcome the revised assumptions for the coming years. Although the company limits its investment plans and sales assumptions, it anticipates higher profitability. I believe that the new assumptions are realistic to achieve,” Sylwia Jaśkiewicz, an analyst at DM BOŚ, told PAP Biznes.
“The price is reacting with strong increases in response to these solid results,” she added.
In the financial year 2026, the LPP Group expects revenues of approximately PLN 28-29 billion compared to approximately PLN 23-23.5 billion in 2025, with a gross margin on sales in the range of 54-54.5%. compared to 54.5-55 percent margin assumed this year.
For 2027, the group expects approximately PLN 33-34 billion in revenues, with an EBITDA margin of 21.5-22.5%.
The group's CAPEX is expected to amount to PLN 2.6 billion in 2026, compared to PLN 2.9 billion this year. Investment expenditure in 2027 is expected to amount to PLN 2.35 billion.
“My forecasts, compared to the previous forecasts of LPP itself, were more optimistic at the level of profitability and I assumed that the company would revise its forecasts at the level of profitability, net debt/EBITDA and at the CAPEX level. The company decided on a lower opening dynamics, and rightly so, because it is not an art to open unprofitable stores, the art is to create a scaled but profitable business,” said Jaśkiewicz from DM BOŚ.
After three quarters of the 2025/26 financial year, the LPP group had PLN 783 million in net profit, PLN 3.05 billion in EBITDA and PLN 16.65 billion in revenues. For comparison, a year earlier, revenues amounted to PLN 14.52 billion, EBITDA was PLN 2.97 billion, and net profit was almost PLN 1.3 billion.
After adjusting for the impairment loss on receivables related to the sale of the Russian business (PLN 823 million in the 9-month period), EBITDA amounted to PLN 3.872 billion in the three-quarter period, and the adjusted net profit amounted to PLN 1.655 billion. (PAP Business)
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