LPP S.A.

In 2Q26, revenue grew 18%, EBITDA was PLN 1.7 billion, operating profit was PLN 1.1 billion, and net profit was nearly PLN 800 million. Gross profit margin improved by 3.7 percentage points year over year in the quarter, and group like-for-likes were +1.8% in the first half of 2026, while Sinsay like-for-likes were -3.8% in the first half. For the first half, EBITDA exceeded PLN 3 billion, EBIT was above PLN 1.8 billion, and net profit was PLN 1.2 billion. CapEx in the first half was above PLN 1 billion, and full-year 2026 CapEx guidance is PLN 2.5 billion. Management raised 2026 gross margin guidance to 56.5%-57% from 56%, while saying net debt/EBITDA should improve slightly versus prior estimates.

Marcin Bójko emphasized execution, operational efficiency, and the company’s ability to use a favorable macro backdrop without relying on it. He highlighted the store rollout, logistics upgrades in Romania, and the launch of Sinsay marketplace as part of a broader plan to increase sales potential. His tone was confident and data-driven, stressing that profitability improved for a fifth consecutive quarter and that the business enters the second half in a comfortable financial position.

The CFO focused on the hard numbers and the drivers behind margin and cash generation. He cited 2Q EBITDA of PLN 1.7 billion, EBIT of PLN 1.1 billion, and net profit of nearly PLN 800 million, plus first-half EBITDA above PLN 3 billion and CapEx above PLN 1 billion. He said inventory was PLN 1,633 per sq. m at quarter-end versus a target band of PLN 1,500-1,600, and noted inventory days improved to 157 from 176 a year ago. He also said net debt/EBITDA improved year over year and that cash flow should keep improving through year-end, with a more permanent cash build expected in 2027.

Analysts focused on FX, gross margin sustainability, the impact of the fire-related insurance process, Sinsay’s weak like-for-likes, and the new marketplace. Management said the gross margin benefit was mostly from a stronger złoty, with about 0.5 percentage point from company efficiency and about 0.2 point from logistics, while the rest came from FX. On insurance, they said more than PLN 250 million had been recovered and that additional Q2 operational costs tied to the fire were minimal, with below PLN 350 million already posted to P&L. On Sinsay, they acknowledged first-half like-for-likes of -3.8% but said trends improved through August and early September, and the marketplace is still too small to materially report on, though management sees early synergy and is targeting PLN 40 million-PLN 50 million EBITDA next year.