Poundland posts earnings rise as turnaround strategy takes hold

Poundland generated EBITDA of £17.3m in its first quarter to December 28, an £8.4m uplift on the comparable period the previous year and in line with guidance it gave suppliers last autumn following court approval of a restructuring including some store closures. It also achieved cost savings £10m above what had been anticipated.

Overall, adjusted like-for-likes fell 2.9%, reflecting the impact of categories removed from the Poundland range as part of the new plans and the end of transactional online sales.

However, like-for-like unit volume sales advanced 9% across revamped FMCG ranges and there was 2% like-for-like unit growth in the wider business.

Since launching its turnaround programme, Poundland has applied the £1 price point, which was a foundation of its original success, to 60% of products, such as confectionery and soft drinks. 

Next week the retailer will launch a new marketing campaign to ram home its value credentials. It will also “begin the transition” to Pep&Co clothing designed and bought by its own team, 90% of the new ranges will be priced at less than £10. 

Poundland managing director Barry Williams said: “While there’s been significant progress as we refocus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.

“Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.

“That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store – in clothing, homewares, as well as our core grocery aisles.

“They’ve told us loud and clear they want a simpler, more focused Poundland that keeps its promise of amazing value. We have clear indications from the work we’ve already done that we’re on the right track.”

Poundland has also put in place a new partnership with industry charity The Retail Trust to support staff wellbeing.

Williams said: “Progress is very much down to the hard work of our colleagues in challenging circumstances. I want to thank them for helping us achieve so much in the last few months. We will continue to do all we can to support them.”