PG plc – Full-Year Results
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
Financial Performance
On 31 August 2026, PG plc published the Annual Report and Financial Statements for the financial year ended 30 April 2026.
Revenue increased by 9.3% to a record of €221 million (FY2024/25: €202 million). The Directors explained that the year was characterised by a persistently challenging market environment, marked by inflationary pressures, uncertain supply chains, and geopolitical tensions. Notwithstanding these conditions, competitive pricing continued to result in sustainable footfall growth which remained the driving factor behind the growth in sales, whilst the Zara and Zara Home operations maintained their strong performance over the course of the year.
Operating costs (net of other income) increased by 10.7% to €204 million, with the Group absorbing the majority of the rising expenses, to sustain competitive pricing. These cost increments, coupled with the pricing strategy adopted in the Group’s supermarkets and changes in the sales mix, trimmed the gross profit margin by 1.1 percentage points to 11.2% (FY2024/25: 12.3%).
Operating profit (EBIT) dropped by 5% to €17.1 million compared to €18.0 million in the previous financial year, whilst the EBIT margin weakened to 7.7% from 8.9%. Excluding depreciation and amortisation charges, EBITDA fell by 6.9% to €20.1 million whilst the EBITDA margin weakened to 9.1% compared to 10.7% in the previous comparable period.
After accounting for net finance costs of €0.92 million and a share of losses from associates of €0.22 million, the Group’s profit before tax amounted to €15.9 million compared to €17.1 million in the previous financial year. The tax charge dropped to €2.99 million from €4.74 million, representing an effective tax rate of 18.7% (FY2024/25: 27.7%) which the Directors explained reflects in part the final tax of 15% on rental income received. On this basis, PG reported a net profit of €13.0 million which is 4.6% higher than the €12.4 million registered in the previous financial year, translating into earnings per share of €0.12 (FY2024/25: €0.11). The return on average equity amounted to 16.9% (FY2024/25: 17.4%).
The Statement of Financial Position as at 30 April 2026, when compared to the corresponding figures as at 30 April 2025, shows that total assets increased by 18.9% (or €30.3 million) to €190 million, which include property, plant and equipment of €76.4 million, right-of-use assets of €29.4 million, investment property of €23.6 million, financial assets of €19.4 million, inventories of €14.3 million and cash balances of €7.6 million.
Total liabilities increased by 28.4% (or €24.5 million) to €111 million, which include bank overdrafts of €30.4 million and lease liabilities of €24.2 million. Total equity expanded by 7.9% (or €5.8 million) to €79.7 million.
Dividend
For the 2025/26 financial year, PG distributed total net dividends of €7.25 million or €0.0671 per share, unchanged from the previous year, and translating into a payout ratio of 56% compared to 58.5% in the previous year.
Annual General Meeting
PG plc will be holding the Annual General Meeting on Tuesday 27 October 2026 at the Westin Dragonara Resort, St Julian’s. Shareholders as at close of trading on Wednesday 23 September 2026 will receive notice of the AGM.
Commencement of operations at St George's Mall
In July 2026, St George’s Mall in St Julian’s, in which the Group holds a 60% equity interest, commenced operations. The development encompasses over 60 retail and commercial units and features a PAVI PAMA supermarket spanning more than 3,000 square metres. The mall also welcomed the opening of a new Euronics electronics franchise operated by PG, alongside a new Zara Home store. The Directors explained that the launch of St George’s Mall signifies a strategic expansion of the Group’s retail footprint, enhances its market positioning across key categories and reinforces its presence within the local market.
Outlook
In their commentary, the Directors stated that the Group ended the financial year in a strong position, with the core business maintaining steady performance. Whilst inflationary costs and geopolitical instability continue to impact operations, increased competition is also evident in the local market, and the Board therefore remains cautious about the future, aware of the various risks and opportunities that could affect performance ahead.
Looking ahead to the current financial year, the Directors explained that the Group remains focused on consolidating the benefits arising from the expansion of its retail footprint, while continuing to deliver value to customers without compromising on quality. The Group will also seek to build on the opportunities created by the opening of St George’s Mall and the continued development of its retail and franchise operations, whilst maintaining its focus on operational efficiency and competitiveness. The Directors noted that the Group’s business model is now supported by a broader and more diversified retail offering, comprising food retail, fashion, homeware and consumer electronics, together with its property-related activities, and that with an experienced management team, an expanded operational platform and adequate financial resources, the Board remains confident that the Group’s customer-centric strategy and continued investment in its retail proposition will support sustainable growth and create long-term value for shareholders.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.