Żabka Group Delivers Robust Growth and Expands Market Leadership in 2025
Żabka Group S.A., the leading convenience retail ecosystem in Poland and a major player in Central and Eastern Europe, has reported strong financial and operational results for the year 2025, marking its first full year as a publicly listed company on the Warsaw Stock Exchange. The Group continued its disciplined growth strategy, expanding its store network to 12,339 locations across Poland and Romania, including the rapidly growing Froo brand in Romania.
Key highlights for 2025 include:
- Sales to End Customers: PLN 31.1 billion, up 14.1% year-on-year.
- Adjusted EBITDA: PLN 4.07 billion, with a margin of 13.1% (up from 12.8% in 2024).
- Net Profit: PLN 1.06 billion, a 78% increase over the previous year.
- Store Expansion: 1,394 new stores opened, exceeding guidance, with a net increase of 1,270 stores.
- Romanian Growth: Froo network reached 170+ stores, with daily customer traffic approaching Polish levels.
- Digital Innovation: Retail media network launched, now with nearly 6,000 screens in over 4,000 stores, reaching 27 million consumers.
- ESG Leadership: Achieved AAA MSCI ESG rating and EQUAL-SALARY certification for the second time, confirming commitment to sustainability and equal pay.
- Capital Allocation: New policy announced, targeting 50% of 2025 net profit as dividend, with 50–70% payout in subsequent years and readiness for share buybacks.
Żabka’s business model, based on an asset-light, franchise-driven approach, enabled the company to maintain a low net leverage ratio of 1.0x Adjusted EBITDA post-rent, while generating PLN 1.74 billion in free cash flow. The Group’s digital and e-commerce businesses, including Maczfit, Dietly, Jush!, and delio, delivered double-digit growth, further diversifying revenue streams and supporting long-term ambitions to double end-customer sales by 2028.
On the sustainability front, Żabka integrated ESG principles across its operations, achieving significant reductions in food waste and greenhouse gas emissions, and implementing a voluntary deposit-return system in nearly all Polish stores. The company also issued PLN 1 billion in sustainability-linked bonds, the largest such issue on the Warsaw Stock Exchange in 2025.
Looking ahead, Żabka aims to open over 1,300 new stores annually in Poland and Romania through 2028, targeting a network of 16,000 locations and continued leadership in digital convenience and responsible retailing.
Relevance: This article is highly relevant to Żabka S.A. as it demonstrates the company’s strong financial performance, strategic expansion, and commitment to innovation and sustainability, reinforcing its position as a market leader in the convenience retail sector.