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Polish retailer Zabka beats the market's expectations for its third-quarter profits

Zabka, a Polish convenience store chain, reported on Tuesday better-than expected third-quarter earnings. This was due to an expanded store network and increased sales.

Why it's important

Zabka, one of Poland's largest convenience store chains, has a market cap of approximately 21,75 billion zlotys (5.98 billion dollars).

The retailer has recently increased its forecast of new store openings by 200 stores to 1,300 in 2025. This is an increase from its previous target. It cited better access to prime retailing locations than anticipated and steady consumer demand.

CONTEXT

Zabka’s growth strategy relies on a franchise-based model, which allows for rapid expansion. In the first nine-month period of 2025, the company opened 1127 new stores.

Zabka has also expanded beyond its domestic market by introducing its "Froo' brand in Romania.

The company was listed on the Warsaw Stock Exchange for the first time in October 2024, and then joined the Polish blue chip index WIG20.

By the Numbers

The company's adjusted third quarter earnings before interest tax, depreciation, and amortization (EBITDA), of 1.28 billion Zlotys ($351.99 millions), exceeded a polled estimate of 1,25 billion Zlotys.

Zabka’s net profit grew 45.2% in the third quarter to 463 millions zlotys, while revenue increased 13.1% in the same time period to 7.44 billion. $1 = 3.6365 Zlotys (reporting and editing by Milla Nissi-Prussak, Matt Scuffham and Marta Maciag)

(source: Reuters)