EL7.AI
StocksMedium•3 November 2026•
3 min read

Eurocash shares rise after earnings beat expectations despite third-quarter revenue decline

Key Facts

1Estimated EBITDA was 216 million zlotys, down 7% from 232 million a year earlier.
2The company estimated net profit attributable to shareholders at 16 million zlotys, compared with 7 million a year earlier, an increase of 126%.
3Estimated operating profit was 89 million zlotys, up 3% from 86 million in the year-earlier period.
4Gross profit on sales was 881 million zlotys, down 15% from 1,031 million, and the margin fell to 12.1% from 13.0%.
5Selling, general and administrative expenses were 822 million zlotys, down 139 million, or 14%, year on year.

Eurocash shares rose in trading on November 3 after market coverage showed that the company’s revenue and EBITDA exceeded average forecasts, while net profit beat expectations for a loss. At the same time, the company provided preliminary estimates showing year-on-year declines in revenue and EBITDA, putting the earnings surprise in the context of operating performance that remains under pressure. Eurocash estimated third-quarter EBITDA at 216 million zlotys, compared with 232 million zlotys a year earlier, down 7%. Operating profit, by contrast, was estimated at 89 million zlotys, up 3% from 86 million zlotys in the year-earlier period. The figures show a divergence between a decline in one of the key profitability measures and an improvement in operating profit, while the market beat lifted the shares, according to coverage published the same day.

The company estimated net profit attributable to shareholders of the parent company at 16 million zlotys, compared with 7 million zlotys in the third quarter of 2025, an annual increase of 126%. But the improvement in net profit was not matched by an increase in gross profit on sales, which came to 881 million zlotys, down 15% from 1,031 million zlotys a year earlier. The gross margin on sales fell to 12.1% from 13.0%, pointing to margin contraction during the period. The company said the revenue decline was mainly linked to the restructuring of its company-owned Delikatesy Centrum stores, alongside lower sales at Eurocash Dystrybucja and Cash & Carry. It added that sales growth at Eurocash Serwis and Frisco offset part of the decline, but did not prevent an overall drop in revenue.

Pressure on sales and margins coincided with a cut in selling, general and administrative expenses to 822 million zlotys, down 139 million, or 14%, year on year. Eurocash attributed the decline to its cost improvement program and network restructuring, which partly explain the improvement in operating profit despite weakness in some activities. The company said one-off items related to the group’s transformation reduced EBITDA by 21 million zlotys and operating profit by 22 million. For the first nine months of 2026, estimated revenue was 21,139 million zlotys, down 7% year on year, while EBITDA was 539 million zlotys, down 8%. These figures remain preliminary indicators of a broader decline in revenue and EBITDA, despite higher net profit attributable to shareholders in the quarter.

Eurocash said its estimates were based on information available to management through November 2, 2026, were unaudited and could differ from the final results. The consolidated third-quarter report is scheduled for publication on November 19, with the company’s results conference to follow on November 20. Those dates will provide an opportunity to present and discuss the final results after the preliminary estimates. Until then, the quarter’s performance hinges on balancing three indicators: lower EBITDA, improved operating profit and net profit attributable to shareholders, and a decline in the gross margin. The share move in the November 3 session followed reports that revenue and EBITDA had beaten analysts’ forecasts and that net profit exceeded expectations for a loss.