Żabka Group S.A.
Company Overview
Żabka Group is the leading organized convenience retail operator in Poland. The Group operates a franchise-based ecosystem centered around the Żabka store network, supported by logistics, supply-chain management, private-label products, food-service offerings, digital solutions, and a growing international presence through the Froo convenience store chain in Romania. The company focuses on proximity shopping, convenience, ready-to-eat meals, and digital customer engagement, serving millions of customers through one of Europe's largest convenience-store networks.
Business Segments
- Ultimate Convenience (Żabka franchise store network in Poland)
- New Growth Engines including Froo Romania, Digital Customer Offering and emerging retail services
- Corporate Functions and strategic technology, logistics and ecosystem development
Key Drivers
- Expansion of the store network across Poland
- Like-for-like sales growth and increasing customer traffic
- Growth of ready-to-eat food, coffee and food-service categories
- Expansion of Froo convenience stores in Romania
- Digital Customer Offering and ecosystem monetization
- Purchasing scale and supply-chain efficiencies
- Private-label product penetration
- Urbanization and increasing consumer demand for convenience
Key Risks
- Competition from discount retailers, supermarkets and quick-commerce operators
- Consumer spending weakness reducing store traffic and basket sizes
- Execution risk associated with rapid store expansion
- Inflationary pressure on labor, logistics, rent and utilities
- Dependence on franchisee recruitment and retention
- Margin pressure from promotional activity and pricing competition
- Expansion risk related to Romania and new business initiatives
- Supply-chain disruptions and distribution-center execution risk
- Regulatory changes affecting retail, franchise operations or tobacco sales
- Lease obligations associated with a large store network
What to Watch
- Net store openings and total store count growth
- Like-for-like sales growth versus inflation
- Sales to End Customers growth and market-share gains
- Adjusted EBITDA margin development
- Profitability of New Growth Engines and Romania expansion
- Free cash flow generation and working-capital trends
- Net debt to Adjusted EBITDA post-rent
- CAPEX intensity and returns on new stores
- Digital ecosystem adoption and monetization
- Franchisee margin development
Foundational Analysis
Business Model
Żabka operates a franchise-led convenience retail model. The company generates revenue primarily by purchasing goods centrally and distributing them to franchise-operated stores. Franchisees operate individual stores and earn a franchisee margin from end-customer sales, while Żabka captures value through wholesale margins, logistics services, private-label products, food-service offerings, digital products, advertising, data capabilities, and ecosystem services. The model combines recurring consumer demand with high shopping frequency, strong purchasing scale, and operational leverage from logistics and technology platforms.
Competitive Positioning
Żabka has built a dominant position in the Polish convenience retail market through its dense store network, franchise model, advanced logistics infrastructure, proprietary technology platforms, and strong brand recognition. Its scale creates purchasing advantages and enables attractive franchise economics. The company is increasingly differentiating itself through ready-to-eat food, digital services, mobile applications, parcel services, and ecosystem offerings that are difficult for smaller competitors to replicate. The ongoing expansion of Froo in Romania provides an additional growth platform outside Poland.
Economics & Capital Allocation
In Q1 2026, Sales to End Customers increased 12.0% year-over-year to PLN 7.4bn, while reported revenue increased 15.9% to PLN 6.6bn. Gross profit grew 17.8% to PLN 959m and EBITDA increased 19.0% to PLN 648m. Adjusted EBITDA reached PLN 674m, representing a 9.1% margin on Sales to End Customers. Growth was driven primarily by store expansion, which contributed approximately 64% of incremental sales growth, supported by 3.2% like-for-like growth and continued development of New Growth Engines. The company operated 12,750 stores at the end of Q1 2026, up from 11,460 a year earlier.
Capital allocation is focused on opening new stores, logistics infrastructure, technology development, automation, digital platforms, and international expansion. Q1 2026 CAPEX totaled PLN 299m, of which PLN 228m was invested in the Ultimate Convenience segment, PLN 48m in New Growth Engines, and PLN 22m in corporate and strategic initiatives. Significant investments are also being directed toward distribution-center capacity, Romania expansion, digital commerce capabilities, and retail automation. Management maintains moderate leverage, with net debt excluding lease liabilities equal to 1.1x Adjusted EBITDA post-rent.
Long-term Risks
Long-term risks include increasing competition from discount chains and digital commerce models, saturation of the Polish convenience-store market, weaker consumer spending, inflationary cost pressure, execution challenges in Romania, slower-than-expected returns from New Growth Engines, regulatory changes affecting convenience retail, and potential deterioration in franchisee economics. Sustained increases in labor, rent, logistics, or financing costs could also pressure profitability.
What Would Break the Thesis
- Sustained slowdown in store-opening pace or deterioration in unit economics
- Persistent decline in like-for-like sales growth below inflation
- Material margin compression due to pricing competition or cost inflation
- Failure of Romania expansion or New Growth Engines to achieve scale
- Significant deterioration in franchisee profitability and network attractiveness
- Weak free cash flow generation despite continued EBITDA growth
- Meaningful increase in leverage without corresponding earnings growth
- Loss of competitive advantage in convenience, food-service or digital offerings
Contracts Intelligence
No contract data available for this company.
View News InsteadFinancial Performance
Quarterly Data
Click a metric row to chart it below. Click a second row to overlay it on a dual axis; click a selected row again to remove it.
| Metric | 2023Q4 | 2024Q1 | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | 2025Q3 | 2025Q4 | 2026Q1 | 2026Q2 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement Revenue (Quarterly) | 5.0B | 5.0B | 6.1B | 6.6B | 6.1B | 5.7B | 7.1B | 7.4B | 6.9B | 6.6B | 8.1B |
| Income Statement Gross Profit (Quarterly) | 1.0B | 718.5M | 1.1B | 1.3B | 1.2B | 814.0M | 1.3B | 1.3B | 1.4B | 1.4B | 1.1B |
| Income Statement EBITDA (Quarterly) | 804.2M | 513.2M | 865.7M | 1.1B | 890.8M | 545.0M | 1.0B | 122.7M | 1.1B | 648.7M | 1.2B |
| Income Statement EBIT (Quarterly) | 417.5M | 127.0M | 447.1M | 664.5M | 420.2M | 106.0M | 784.9M | 1.0B | 856.2M | 145.1M | 641.3M |
| Income Statement Net Income (Quarterly) | 208.6M | -99.0M | 157.2M | 318.6M | 215.9M | -125.0M | 191.8M | 462.8M | 527.5M | -73.0M | 322.2M |
| Costs Selling & Distribution Costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 191.2M |
| Costs Administrative Expenses | 0 | -80.0M | -95.3M | -126.5M | -159.4M | 120.6M | 145.1M | 134.0M | 182.0M | 139.1M | 174.2M |
| Costs Administrative Expenses (LTM) | - | - | - | -301.8M | -461.2M | -260.7M | -20.2M | 240.3M | 581.7M | 600.3M | 629.4M |
| Cash Flow Operating Cash Flow | 0 | 795.0M | 1.5B | 1.1B | 349.4M | 572.0M | 1.7B | 1.1B | 698.9M | 570.7M | 1.9B |
| Cash Flow Capital Expenditure | 0 | -182.0M | -398.8M | -415.2M | -511.3M | -517.0M | -333.2M | -387.0M | -386.6M | -383.1M | -384.4M |
| Cash Flow Free Cash Flow | - | 613.0M | 1.1B | 727.4M | -161.9M | 55.0M | 1.4B | 761.0M | 312.4M | 187.7M | 1.5B |
| Cash Flow Depreciation & Amortization | 0 | 386.0M | 419.0M | 429.0M | 470.0M | 439.0M | 468.5M | 483.2M | 498.9M | 503.3M | 521.9M |
| LTM Metrics Revenue (LTM) | - | - | - | 22.8B | 23.8B | 24.4B | 25.4B | 26.3B | 27.2B | 28.1B | 29.0B |
| LTM Metrics EBITDA (LTM) | - | - | - | 3.3B | 3.4B | 3.4B | 3.5B | 2.6B | 2.8B | 2.9B | 3.0B |
| LTM Metrics Net Income (LTM) | - | - | - | 585.4M | 592.8M | 566.8M | 601.4M | 745.5M | 1.1B | 1.1B | 1.2B |
| LTM Metrics Net Profit Attributable (LTM) | - | - | - | 585.4M | 592.8M | 566.8M | 601.4M | 745.5M | 1.1B | 1.1B | 1.3B |
| LTM Metrics Operating Cash Flow (LTM) | - | - | - | 3.4B | 3.8B | 3.5B | 3.8B | 3.8B | 4.1B | 4.1B | 4.3B |
| Profitability Gross Margin | 20.5% | 14.3% | 18.1% | 20.4% | 20.1% | 14.4% | 18.2% | 17.8% | 20.9% | 22.0% | 13.1% |
| Profitability EBITDA Margin | 16.0% | 10.2% | 14.1% | 16.6% | 14.7% | 9.6% | 14.1% | 1.6% | 15.9% | 9.9% | 14.4% |
| Profitability EBIT Margin | 8.3% | 2.5% | 7.3% | 10.1% | 6.9% | 1.9% | 11.0% | 13.5% | 12.4% | 2.2% | 7.9% |
| Profitability Net Margin | 4.1% | -2.0% | 2.6% | 4.8% | 3.6% | -2.2% | 2.7% | 6.2% | 7.6% | -1.1% | 4.0% |
| Profitability ROIC | - | - | 68.3% | 79.5% | 51.5% | 36.5% | 41.4% | 44.9% | 53.5% | 54.6% | 40.8% |
| Profitability Cash Conversion | 0.0% | -803.0% | 942.0% | 359.0% | 162.0% | -458.0% | 881.0% | 248.0% | 133.0% | -782.0% | 592.0% |
| Balance Sheet Current Assets | 0 | 0 | 4.6B | 4.8B | 4.4B | 5.1B | 5.1B | 5.4B | 5.0B | 5.0B | 5.9B |
| Balance Sheet Current Liabilities | 0 | 0 | 7.3B | 7.3B | 7.6B | 8.3B | 8.3B | 8.4B | 8.3B | 8.3B | 9.6B |
| Balance Sheet Inventories | 0 | 0 | 706.0M | 682.3M | 1.1B | 923.7M | 923.7M | 1.1B | 1.0B | 1.0B | 973.6M |
| Balance Sheet Trade Receivables | 0 | 0 | 2.3B | 2.1B | 2.3B | 2.4B | 2.4B | 2.8B | 2.8B | 2.8B | 3.0B |
| Balance Sheet Trade Payables | 0 | 0 | 5.7B | 5.5B | 5.9B | 5.4B | 6.4B | 6.4B | 6.6B | 6.4B | 7.8B |
| Balance Sheet Total Equity | 0 | 0 | 823.0M | 1.1B | 1.4B | 1.5B | 2.0B | 2.5B | 2.4B | 2.4B | 2.2B |
| Balance Sheet Total Debt | 0 | 0 | 5.0B | 5.1B | 4.5B | 4.9B | 4.9B | 4.1B | 4.1B | 4.1B | 9.6B |
| Balance Sheet Cash & Equivalents | 0 | 0 | 1.2B | 1.6B | 750.0M | 552.0M | 1.6B | 1.3B | 1.1B | 844.4M | 1.6B |
| Balance Sheet Invested Capital | 0 | 0 | 4.7B | 4.6B | 5.2B | 5.8B | 5.3B | 5.4B | 5.5B | 5.8B | 10.2B |
| Balance Sheet Net Working Capital | 0 | 0 | -2.7B | -2.8B | -2.5B | -2.1B | -3.0B | -2.4B | -2.8B | -2.5B | -3.9B |
| Ratios Current Ratio | - | - | 0.62 | 0.65 | 0.58 | 0.61 | 0.61 | 0.63 | 0.60 | 0.60 | 0.61 |
| Ratios Net Working Capital to Revenue | 0.00 | 0.00 | -0.44 | -0.42 | -0.41 | -0.37 | -0.42 | -0.32 | -0.40 | -0.38 | -0.48 |
| Ratios Administrative Expenses as % of Revenue | - | - | - | -1.3% | -1.9% | -1.1% | -0.1% | 0.9% | 2.1% | 2.1% | 2.2% |
| Ratios Days Inventory Outstanding (DIO) | 0.00 | 0.00 | 16 | 11 | 17 | 14 | 13 | 16 | 14 | 13 | 12 |
| Ratios Days Sales Outstanding (DSO) | 0.00 | 0.00 | 53 | 33 | 35 | 36 | 35 | 39 | 38 | 37 | 37 |
| Ratios Days Payables Outstanding (DPO) | 0.00 | 0.00 | 130 | 89 | 90 | 81 | 91 | 88 | 89 | 83 | 98 |
| Ratios Cash Conversion Cycle (days) | 0.00 | 0.00 | -61 | -45 | -38 | -31 | -43 | -34 | -38 | -33 | -49 |
Revenue (Quarterly) - Visual Analysis
Revenue (Quarterly) (PLN)
Growth Rates (QoQ% and YoY%)
Data Source: Financial data sourced from company filings and periodic reports. Values in PLN. Margins and ratios stored as decimals converted to percentages for display.
Recent News & Developments
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Results Call Transcripts
Summaries of Żabka Group S.A.'s results conference calls are free. Full transcripts are available to subscribers.
Żabka Group S.A.
Key takeaways
- Zabka Group reported strong Q2 2026 results, with sales to end customers reaching 9.2 billion PLN, up 13.2% year-on-year, and adjusted EBITDA growing 16.2% to over 1.2 billion PLN.
- Couche-Tard announced a transformative acquisition of Zabka, offering 32 PLN per share in an all-cash deal, valuing Zabka at approximately $8.6 billion USD. Couche-Tard has secured irrevocable commitments for 57% of Zabka's shares.
- The transaction is expected to close by Q4 2026, subject to regulatory approvals.
Key financial figures
- Sales to end customers: 9.2 billion PLN in Q2 2026, up 13.2% year-on-year.
- Like-for-like growth: 4% in Q2, improving from Q1.
- Adjusted EBITDA: 1.2 billion PLN, up 16.2% year-on-year, with a margin of 13.3% (+34 basis points).
- Reported EBITDA: 1,163 million PLN, up 16.1% year-on-year.
- Net profit: Adjusted net profit of 366 million PLN, up 66% year-on-year.
- Free cash flow: Over 1.2 billion PLN in Q2, with a conversion rate above 130%.
- Net debt to adjusted EBITDA: 0.7x, down from 1.2x a year ago.
- Store network: Over 13,000 stores across Poland and Romania, with 1,368 gross openings in the last 12 months.
Guidance & outlook
- Zabka maintains its full-year guidance for like-for-like growth (mid to high single digits) and profitability.
- The company plans to sustain its pace of growth, targeting over 1,300 new store openings annually in the medium term.
- Couche-Tard aims to close the acquisition by Q4 2026 and is open to running Zabka as a public company or delisting it, depending on the tender outcome.
Strategic highlights
- Zabka continues to expand its footprint, with 303 new stores in Poland and 40 in Romania opened in Q2 2026.
- The company is focused on its Romanian market, with 250 stores currently operating and plans for further expansion.
- Couche-Tard views Zabka as a best-in-class convenience platform, particularly in food, digital engagement, and loyalty, aligning with its "core plus more" strategy.
- The acquisition will create a combined entity with approximately 30,300 stores globally, significantly increasing Couche-Tard's European presence and diversifying its revenue mix.
Q&A highlights
- On the acquisition price: Couche-Tard stated that the 32 PLN per share offer is final, leaving the decision to tender shares to the market.
- Synergies: Expected from Zabka's strengths in food, private brands, digital solutions, and supply chain, which Couche-Tard plans to scale across its network.
- Shareholder commitments: Couche-Tard has secured 57% of Zabka's shares and is open to either maintaining Zabka as a public company or delisting it.
- Franchisee margins: Year-to-date franchisee margins are slightly above last year, driven by the growing share of quick meal solutions (QMS) and franchisee engagement.
- Romania expansion: Zabka remains focused on growing its Romanian operations, with no immediate plans for further international expansion.
- Q2 gross margin drivers: Improved terms of trade, operational efficiencies, and lower inflation contributed to margin expansion.
- Full-year outlook: Zabka reiterated its guidance for mid to high single-digit like-for-like growth and profitability, with no changes planned at this stage.
2026 EPS Estimates
- Would involve slower store expansion, weaker consumer demand, margin pressure from competition and inflation, and losses from growth initiatives persisting longer than expected
- The provided materials contain historical operating and financial performance but do not provide management EPS guidance or sufficient information to build a forward valuation model
- Would require sustained double-digit store growth, continued margin expansion, successful Romanian expansion, and improved profitability of New Growth Engines
Note: EPS estimates are for informational purposes only and represent our analytical framework, not investment recommendations. These financial results estimates are based on stated assumptions and may change as new information becomes available.
Key Metrics
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Data Source: Key metrics are extracted from company disclosures, periodic reports, and management commentary.
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