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LPP: LPP S.A. Group's Q3 2026 Earnings: Strong Growth and Ambitious Targets

LPP S.A. Group reported a robust Q3 2026, with total sales reaching PLN 6.1 billion, a 22% year-on-year increase. EBITDA stood at PLN 1.7 billion, EBIT at PLN 1.2 billion, and net profit at PLN 800 million, representing a 39% year-on-year growth. The company's earnings per share (EPS) was significantly higher than estimates, although the actual EPS figure wasn't directly comparable due to a large negative value in the previous year ('-8.42047' vs estimates at '284.99'). The gross profit margin improved, driven by a favorable exchange rate and efficient SG&A costs.

LPP.WA

PLN 21100

-0.38%

A-Score: 5.7/10

Publication date: December 11, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Total Sales Growth Achieved PLN 6.1 billion in Q3 2026, reflecting a 22% year-on-year increase.
  • Net Profit Surge Net profit reached PLN 800 million, a 39% year-on-year growth, driven by operational efficiency.
  • Dividend Payment Distributed PLN 330 per share (totaling PLN 1.2 billion) as part of its second dividend tranche.
  • E-commerce Expansion Online sales hit PLN 1.7 billion, growing 22% year-on-year, with the Sinsay app contributing 30% of sales.
  • Store Network Growth Opened 232 stores (200 Sinsay) in 2026, with plans to add 350–400 stores in Q4 2026, targeting 950 Sinsay stores by 2028.

Store Expansion and E-commerce Growth

The company continued its aggressive expansion, opening 232 stores, including 200 Sinsay brand stores, bringing the total number of Sinsay stores to a significant portion of its overall store count. E-commerce sales increased by 22% year-on-year to PLN 1.7 billion, driven by the Sinsay app, which accounted for 30% of the company's e-commerce business.

Outlook and Targets

LPP expects to open 350-400 new stores in Q4, mostly Sinsay brand stores, and has set ambitious targets for 2027, with sales expected to reach at least PLN 28 billion, representing over 20% growth. The company aims to achieve a minimum revenue of PLN 33 billion in 2028, with a growth factor of 1.7 versus 2025. The gross margin and OpEx are expected to improve, leading to an increase in EBITDA.

Valuation and Dividend Yield

With a P/E Ratio of 21.69 and a P/S Ratio of 1.88, the market seems to have priced in a significant portion of LPP's growth potential. However, the Dividend Yield of 3.13% and a target payout of 70% of net profit provide a relatively stable return for investors. The company's ROE of 35.9% and ROIC of 15.1% indicate a strong ability to generate returns on equity and invested capital.

Competitive Strategy and Risk Management

LPP is focusing on building scale in particular markets and improving profitability, rather than entering new markets. The company is also taking steps to manage risks, including a cautious approach to profitability in Ukraine and a focus on operational effectiveness, particularly in logistics. The refinancing and savings plans are expected to provide a comfort of 3 years of current limits, with a prospect of 5 years to come.

LPP's A-Score