Żabka Group Reports 12% Sales Growth and 435 New Store Openings in Q1 2026

In the first quarter of 2026, Sales to End Customers (StEC) for the Żabka Group increased by 12% year-on-year, reaching PLN 7.4 billion. Like-for-like (LfL) sales growth, which stood at 3.2%, was significantly impacted by exceptionally unfavorable weather conditions in January and February this year, when low temperatures and snowfall restricted customer traffic. As the weather improved, a clear increase in store traffic and an improvement in sales dynamics were observed in the subsequent weeks of the quarter.

Adjusted EBITDA reached PLN 674 million, up 13.1% year-on-year. Driven by further network expansion, LfL growth, and consistent cost optimization, the adjusted EBITDA margin rose to 9.1% from 9.0% a year earlier. The adjusted net loss narrowed to PLN 51 million, representing an improvement of PLN 25 million year-on-year, primarily due to further growth in operating results and reduced financial costs. It is worth emphasizing the seasonal nature of the Group’s operations – the first quarter generally has the smallest impact on the full-year result due to weather conditions limiting customer traffic and a less favorable product mix. In this context, the achieved results confirm the resilience of the Group’s business model and create a solid foundation for development in the following periods of the year.

The Group, which constitutes the largest modern convenience ecosystem in Europe, opened 435 new stores in Poland and Romania in the first quarter. The sustained high pace of expansion allows the Group to confidently move toward achieving its goal of over 1,300 new locations throughout 2026. Network development is supported by a steady influx of new franchisees, confirming the effectiveness of the adopted growth strategy and the high attractiveness of the franchise model and the partnership proposal with Żabka.

Tomasz Suchański, CEO of Żabka Group, comments:

“In the first quarter, we consistently implemented our strategic objectives. Above all, we are maintaining a high pace of network expansion, launching as many as 435 new locations in Poland and Romania, which corresponds to an average of nearly five openings per day. Strong interest from franchisees and intensive development in both markets confirm our ability to further scale the business and put us on track to achieve our target of over 1,300 new openings in 2026. In the first quarter of 2026, we maintained a balance between sales growth in existing locations and further network expansion, while maintaining stable profitability. This was possible thanks to consistent cost control and responsible expenditure management. Despite the coldest winter in over 10 years, we recorded double-digit revenue growth and like-for-like (LfL) sales dynamics of 3.2%. The growing scale of operations, consistent cost discipline, and investments in technology and infrastructure create a solid foundation for further development and sales growth in the subsequent, seasonally stronger quarters.”

Tomasz Blicharski, Group Chief Strategy & Development Officer, stated:

“The first quarter of 2026 clearly demonstrated what sets Żabka apart from the market: the ability to respond flexibly to environmental challenges and effectively adapt the offering to the expectations of modern convenience format customers. Our speed of adaptation stems from a combination of data analytics, the use of AI-based solutions, and high operational flexibility, which allows us to efficiently introduce innovative products and services to the market. An excellent example is the ‘Thursday Dinners’ campaign, which proved to be a great success – sales of ready meals increased by over 30% in value and over 40% in volume. Every Thursday, we already sell over half a million meals. Simultaneously, we are consistently developing our digital businesses. All these initiatives reflect our consistent approach to growth: we leverage our core convenience platform while selectively expanding into related areas that increase the accessibility of our offer.”

Marta Wrochna-Łastowska, CFO of Żabka Group, adds:

“The first quarter of 2026 confirmed that we effectively combine further growth in the scale of operations with cost discipline, which remains one of the cornerstones of our financial strategy. We continued to optimize operating costs, including improvements in logistics and measures to enhance energy efficiency, which translated into a year-on-year increase in the adjusted EBITDA margin. Despite the seasonally least significant quarter, negative working capital, and the opening of 435 new stores, we generated positive cash flows, which is further evidence of our business’s excellent cash generation capacity. At the same time, the leverage ratio decreased further year-on-year, reaching 1.1x. Looking at subsequent periods, we maintain our expectation of mid-to-high single-digit like-for-like (LfL) sales growth in 2026 and over the medium term. We also assume maintaining the adjusted EBITDA margin in the upper part of the 12–13% range, while gradually improving the net profit margin toward approximately 4.5% in the medium term.”

Key information on Żabka Group results after Q1 2026

• Sales to End Customers (StEC) amounted to PLN 7,411 million, up 12% year-on-year. StEC includes the Ultimate Convenience segment (Żabka stores) and New Growth Engines (NGE), including operations in Romania and Digital Businesses (DCO). Total StEC growth in Q1 2026 was driven by network expansion (64%), LfL growth (25%), and NGE (11%).

• Consolidated revenue increased by 15.9% year-on-year to PLN 6,565 million.

• Żabka Group opened 435 new stores in Poland and Romania in the first quarter, bringing the total to 12,750 locations at the end of March 2026 (+11.3% yoy). In Romania, under the Froo brand, the number of stores grew to 204.

• Despite unfavorable weather, LfL sales grew by 3.2%. In warmer periods of Q1, LfL dynamics reached mid-to-high single digits.

• Adjusted EBITDA rose 13.1% to PLN 674 million, with a margin of 9.1%.

• Adjusted net loss narrowed to PLN 51 million (an improvement of PLN 25 million yoy).

• Net debt to Adjusted EBITDA (after rents) fell to 1.1x from 1.6x a year earlier.

Summary of Q1 2026 Results

Selected KPIs and performance metrics

(All margins calculated based on Sales to End Customers)