PG Group, the business group behind the PAMA and PAVI supermarkets and the Zara franchise, saw its operating profit decline by 5 per cent after absorbing the majority of rising costs rather than pass them on to consumers through higher prices.

This decline came despite a strong increase in sales, with turnover rising 9.3 per cent from €202 million to €220.8 million during the financial year ended 30th April 2026.

In its annual financial report, PG Group reported an operating profit of €17.1 million, down from the €18 million it posted in 2025, and a 1.1 per cent decline in its overall gross profit margin.

The business group said this was the result of a strategic decision to absorb cost increases where feasible to sustain competitive pricing.

“Amid inflationary pressures, particularly in payroll expenses, our strategic emphasis on affordability and value for consumers remained paramount,  with the group absorbing cost increases where feasible to sustain competitive pricing,” it said.

“Operating costs increased by 10.7 per cent, yet price increases were minimised as the Group absorbed the majority of these rising expenses to maintain highly competitive pricing,” it said.

Meanwhile, PG Group reported profit before taxation of €15.9 million, down from €17.1 in 2025.

Despite the decline in pre-tax profit, profit after tax increased by 4.6 per cent to €13 million, partly reflecting a lower effective tax rate of 18.7 per cent compared with 27.7 per cent the previous year.

Group equity increased by 7.9 per cent to €79.7 million as a result of retained profits.