Poundland owner Pepco Group has reported solid growth in the six months to March, driven by strong demand as customers seek lower prices on the back of high inflation.
Revenue grew by 22.8% on a constant currency basis to €2.8bn (£2.5bn) during the half year, Pepco said in a statement, with Poundland penning like-for-like growth of 4.9%.
166 new stores were opened in the first half of the year, Pepco added, including its first in Greece and a growing number in Poland.
“We have seen signs of changing consumer behaviour, particularly in response to high inflation in Central Europe,” the company noted.
“This highlights the importance, more than ever, of offering the best possible value for money to our customers, leading to our continued market outperformance.”
Pepco reiterated full-year pre-tax earnings growth should be in the “mid-teens” and that it did not anticipate any changes to previous guidance.
“Pepco has recorded an encouraging second-quarter trading performance against the backdrop of a continuing inflationary environment for both customers and the business,” Pepco boss Trevor Masters said.
“Demand for our products remains strong, and double-digit like-for-like revenue growth demonstrates solid progress for the Group.”