Business
Action Capital Markets Seminar & portfolio update
Action Capital Markets Seminar & portfolio update.
About this update from 3i Group Plc
[{"type":"text","content":"\n\n \n20 March 2025\n \n3i Group plc\nAction Capital Markets Seminar and portfolio update\n \n \n3i Group plc (\"3i\", or \"the Group\") will be holding a capital markets seminar this morning, involving presentations from the management team of Action, our largest portfolio company. A live webcast of the seminar will take place at 10:00 (UK time). To register for the webcast, please visit https://www.3i.com/investor-relations. An on-demand webcast of the seminar will also be available by the end of the day.\n \nIn its 2024 financial year Action generated net sales of €13,781 million and operating EBITDA of €2,076 million, 22% and 29% respectively higher than in 2023. Like-for-like sales growth was 10.3% and the business added 352 stores in the year. Operating leverage and good cost discipline were the main drivers behind the increased EBITDA margin of 15.1%.\n \nAction has made a good start to 2025. In the period to the end of week 11, Action's net sales were €2.95 billion, 17% ahead of the same period in 2024. Like-for-like sales growth in the first 11 weeks of the year was 6.1%, with growth in transactions being 6.5%. The YTD like-for-like sales have been affected by temporary availability issues in certain stores and DCs as a result of the changeover of Action's ERP system at the turn of the year. These issues have now been dealt with. The business has added 38 stores in the year to date. Cash and cash equivalents as at 16 March 2025 was €927 million. Action is planning to make another dividend payment to shareholders in the last week of March.\n \nThe following guidance for Action's year to December 2025 will be set out during the presentation.\n \n\n\n\n\nLike-for-like sales growth\n\n\nAbove YTD like-for-like sales and in the mid to high single digit range\n\n\n\n\nNet store opening target\n\n\nc.370\n\n\n\n\nEBITDA margin expansion\n\n\n+c.10-20 bps from 15.1% for the 12 months to 29 December 2024\n\n\n\n\n \nAction's estimate of white space potential in existing and identified in-scope countries in Europe will be updated to 4,850 stores in addition to the 2,918 existing stores at the end of 2024. This represents an increase of c.500 from the white space estimate given last year.\n \nIn March 2025, Action completed a successful, leverage neutral repricing of c.53% of its ...