Żabka Group had PLN 1.279 billion of adjusted EBITDA in Q3 compared to PLN 1.245 billion of the consensus

Zabka Group recorded PLN 1.279 billion in adjusted EBITDA in the third quarter of 2025, compared to PLN 1.119 billion a year earlier, the company said in a press release. Analysts expected adjusted EBITDA of PLN 1.245 billion. The results for the three quarters confirm the company's belief in the possibility of moderate improvement in the annual EBITDA margin in the upper range of 12-13%.

Reported EBITDA increased by 12.2%. y/y to PLN 1.226 billion.

EBIT amounted to PLN 743 million compared to PLN 664 million a year earlier. The consensus was PLN 733 million.

Net profit in the third quarter amounted to PLN 463 million compared to PLN 319 million profit a year earlier. Analysts expected net profit of PLN 399.1 million.

Adjusted net profit amounted to PLN 505 million compared to PLN 341 million profit a year earlier.

The revenues of the Żabka Group in the third quarter amounted to PLN 7.44 billion compared to PLN 6.578 billion a year ago (an increase of 13.3% y/y). The consensus forecast was PLN 7.396 billion in revenues.

Sales to end customers in the third quarter increased by 13.6%. y/y, to PLN 8.517 billion.

LFL sales increased by 4.5%. compared to 6 percent growth in the third quarter a year earlier.

Cumulatively, after three quarters of 2025, the Żabka Group has PLN 20.23 billion in revenues and PLN 2.932 billion in adjusted EBITDA. Net profit amounted to PLN 530 million.

Free cash flow (FCF) reached PLN 1,804 million in Q1-Q3 compared to PLN 1,907 million a year ago.

Capital expenditure after three quarters amounted to PLN 1,085 million. The debt to adjusted EBITDA ratio decreased to 1.0x at the end of September from 1.4x in Q3 2024.

“We are satisfied with our results for the first nine months of this year, which were achieved thanks to the continued good results achieved in our core business. Our operational efficiency and rigorous cost management allowed us to improve the adjusted EBITDA margin, despite unfavorable weather conditions,” said Marta Wrochna-Łastowska, the company's financial director, quoted in the release.

“This confirms our belief in the possibility of achieving a moderate improvement in the adjusted annual EBITDA margin in the upper range of 12-13 percent. We have also significantly strengthened our capital structure and reduced financing costs. After a successful bond issue in May this year, in September we improved financing conditions by extending maturities and reducing loan margins. Combined with tax benefits, this allowed us to achieve a net profit margin after the first 9 months of this year at 2.8 percent. This development direction positions us well to meet our expectations, with the adjusted net profit margin approaching our target of 3 percent already in 2025,” she added.

In turn, the company's president, Tomasz Suchański, pointed out that the company maintains growth in all key areas of activity, thanks to the synergy between network development, digitalization and product innovations.

“We are dynamically accelerating our expansion – we are on track to exceed the updated target of over 1,300 new openings this year and to achieve the target of approximately 16,000 stores in Poland and Romania by the end of 2028,” said the president.

At the end of September 2025, the Żabka Group's store network had a total of 12,099 locations, compared to 10,906 at the end of Q3 2024. Within 9 months, the group opened 1,127 new stores and closed 97 stores.

In the opinion of Tomasz Blicharski, director of strategy and development, the effective business model allows the company to consistently strengthen its position and increase its market share, which, according to Nielsen, amounted to 10.7%. at the end of September 2025.

“We maintain a high pace of expansion, taking advantage of the high availability of attractive locations, using the potential of converting traditional trade into a modern convenience format. Our business model is attractive on the market, which effectively translates into the interest of candidate franchisees,” said Blicharski.

“In Romania, the Froo chain is dynamically increasing the scale of its operations, becoming one of the fastest growing convenience formats on the market. The increase in comparable sales (LfL) is supported by, among others, even better adaptation of the format of our stores to customer preferences and the SellerPRO initiative, under which, among others, sellers promote selected products at the checkouts. Additionally, we are accelerating the development of DCO through our own courier services, launching a fintech service, and expanding the availability of our e-grocery services to a new city – Wrocław,” he added.

mcb/ pel/ osz/