Pepco, the discount retailer, fell into the red as a poor performance from Poundland and increased competition weighed on the group.
The Warsaw-listed retailer reported a pre-tax loss of €554 million for the year to September 30, down from a profit of €159 million the previous year.
A weak outlook and slowing sales at Poundland put pressure on the group as the business booked a non-cash impairment charge of €775 million.
Stephan Borchert, the chief executive, said Poundland was “impacted by declines in clothing and general merchandise following the transition to Pepco-sourced product ranges at the start of the year”.
He added: “With the transition to the Pepco ranges I think the business lost a bit of its DNA, so we are working now as