LPP S.A.

2025 headline performance (what went well / surprising scale): - LPP delivered a record year with >1,000 new store openings, taking store count from ~2,700 to ~3,700 (opening required >1,500 location approvals). - 6 new markets added (combined ~60m consumers). - Robotic/logistics fleet scaled 6x and new logistic facilities added. - E-commerce grew ~+20% and was cited as financially meaningful (company referenced large incremental revenue growth in e-commerce).

Profitability, cost discipline, and financial structure (investor “quality”): - Management emphasized controlled cost growth (spending “carefully” / efficiency drive) despite large expansion. - EBITDA/EBIT/net profit growth ~+35–36% (company stated profit growth in the mid-30% range) while maintaining financial stability. - Net debt / EBITDA ~1.1x (stated as “substantial financial stability”). - Financing strength: after work on financing consortium, they secured funding with bank oversubscription (mentioned a consortium interested in ~PLN 20bn, company planned ~PLN 13.5bn; limitation on uptake). - Good margin story with store performance: in the Sinsay segment, ~30% net average EBITDA on stores and ~98% of stores positive EBITDA contribution (non-trivial/“not standard” for the industry, per management).

Q4 & annual dynamics / what was mixed (negative points): - Seasonality + weather hit demand patterns: - Q4 started weaker (early November difficult; customers waited for Black Friday). - Winter was extremely cold (below -11°C / -15°C for 2–3 weeks), which pushed more pressure toward discounting earlier, and boosted online behavior, but also enabled selling winter inventory with less discounting later. - Like-for-like (LFL) stabilization/normalization: - Management said normalization in Reserved was positive; Sinsay LFL lagged vs earlier periods (they described a decline sequence and then low LFL later). - Still, company argued that 2-year average LFL remained positive (Sinsay +~4.1%, other brands +~3.3%, ex-VAT). - Input costs / FX risk acknowledged: guidance explicitly incorporated currency (stronger USD) and war-related market “havoc.”