Zabka will be the largest listing in Poland in recent years
CVC Capital has announced the listing of the grocery chain Zabka. According to analysts, the listing in Poland will be the largest for the country since 2021.
For CVC, the retailer’s listing is an opportunity to exit some of its investments. Zabka, in turn, will be able to strengthen its position in the capital market. According to experts, the network has every chance of concluding a number of advantageous deals.
The listing process began with the approval of the IPO prospectus. Meetings with potential investors followed. This stage is mandatory to determine the price range. Bloomberg reports that the retailer could be worth around $US8 billion. The IPO should raise about US$1.5 billion.
Growth strategy
CVC has been managing Zabka’s assets since 2017 after buying the chain from Mid Europa Partners. At the time, the deal was the largest in the Polish retail market. Zabka positions itself as a convenience store chain. Today, the chain has more than 10,000 stores. The majority of them are under the management of franchisees. More recently, Zabka entered the Romanian market with the purchase of DRIM Daniel. This company operates in the consumer distribution sector.
Zabka’s main competitors in Poland are the Dino and Biedronka chains. The latter is the property of the Portuguese company Jeronimo Martins. It is worth noting that in 2024, the retail business took a turn for the better. People’s purchasing power is improving, which is suitable for sales. However, despite the slowdown, inflation is still putting pressure on the market. Competition is also increasing.
Retailer performance
In preparation for the listing, Zabka presented its financial statements for 2023. The Bankier quotes the following figures:
– net profit totalled almost PLN 358 million;
– operating revenue was PLN 1.38bn;
– EBITDA was PLN 2.7 billion;
– cash: almost PLN 643 million;
– the network’s EBIT yield was around 7%.
At the same time, financial expenses amounted to PLN 305 million. It is important to note that the results of this period decreased in several respects in comparison with the previous period. For example, the net profit in 2022 was almost PLN 383 million.
As for plans, Zabka intends to expand its network. Within five years, the company plans to open about 900 stores a year. In 2023, there will be 1,100 new stores. The retailer will also enter new markets in Central and Eastern Europe. The first of these is Romania.
