Modivo (MDV) Q3 2025 earnings summary

Executive summary

• Revenue increased by 7.8% year-over-year to PLN 8.2 billion, driven by omnichannel growth, aggressive store expansion, and a strong back-to-school period, despite weather-related volatility and a high comparative base.

• Net profit declined to PLN 291.9 million from PLN 463.4 million year-over-year, mainly due to higher costs and lower gross margin.

• Strategic investments included a PLN 1.55 billion share issue, full ownership acquisition of MODIVO.COM S.A., and the acquisition of Szopex Sp. z o.o., supporting future growth in licensed brands and apparel.

• The Group accelerated expansion, adding 213 stores and increasing retail space by 251,400 m², with a focus on Half Price and Worldbox formats.

Financial highlights

• Group sales grew by 7% year-over-year in constant currencies, with Q3 revenue at PLN 3 billion and 9M revenue at PLN 8.2 billion; LFL sales up 21%.

• Group EBITDA for 9M 2025 was PLN 898 million, up from PLN 828 million in 9M 2024, with Q3 EBITDA margin at 14%, below expectations due to high costs and weather impacts.

• Gross profit rose 4.1% year-over-year to PLN 4,024.0 million, but gross margin fell to 49% from 51%.

• Net cash from operating activities grew 28.6% to PLN 1,277.7 million, driven by inventory reduction and better supplier financing terms.

• Total assets increased 22.8% to PLN 11,117.7 million, and equity rose 29% to PLN 2,497.0 million, supported by the share issue.

Outlook and guidance

• Q4 is expected to be strong, with most expansion costs already incurred and Half Price well positioned for a high season; EBITDA is projected at PLN 500–600 million, up from below PLN 500 million in Q4 last year.

• 2025 revenue is now expected at PLN 11.3–11.5 billion, with EBITDA of PLN 1.7–1.8 billion, both below initial targets.

• Long-term strategy aims for PLN 25 billion in revenue and 20–24% EBITDA margin by 2030, with continued expansion and brand development.

• The Group expects continued growth in off-price and omnichannel segments, focusing on expanding retail space and digital sales.