Poundland has reported a rise in like-for-like sales of 9% for the third quarter as a result of a “strengthening FMCG performance”.

Pepco Group sales saw a 12.5% increase to £1.17bn year-on-year on a constant currency basis, as Poundland revenue saw a lift to 8.6%.

The group is maintaining its previous guidance on full year profit outlook, as Pepco CEO, Trevor Masters, said the discounter also “remains confident” in meeting its current target of opening at least 550 new stores this financial year. This follows on 325 net new store openings in nine months to date.

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However, he admitted “the macro-economic climate continues to be challenging, due to elevated levels of inflation”.

Masters said that Poundland’s “strong trading performance” was driven by consumers “prioritising spend on FMCG items”.

“We remain committed to supporting our customers in this challenging environment by maintaining our market-leading pricing.”

He added that the group will continue to “seek improvements in the cost of doing business and leveraging our in-house direct sourcing arm, PGS. Our focus remains on building a bigger, better, cheaper and simpler business and we are well positioned to deliver future success as inflationary pressures ease.”