The company, which has its head office in the West Midlands, also cashed in on its expanded clothing and homewares ranges.
The parent Pepco Group said like-for-like sales rose 2.4 per cent across Poundland stores in the UK and the Dealz chain abroad over the three months to the end of December.
The key quarter accounts for around a third of annual sales for the chain. Poundland and Dealz achieved revenue of £564 million.
But the wider group saw like-for-like sales fall 2.1 per cent, dragged lower by a six per cent drop at its international chain Pepco, which is not deemed an essential retailer and was hit by enforced closures due to coronavirus lockdowns across Europe.
The group, which has its headquarters close to the M6 in Willenhall, said its 917 Poundland stores in the UK put in a resilient performance, despite many being based in high streets which have been decimated by Covid-19 restrictions.
Andy Bond, chief executive of Pepco Group, said: "Our revenue performance clearly signals the strength of each of our retail brands and customer offers and our resilience to short-term Covid disruption.
"We anticipate that the consumer backdrop will remain challenging in the short-term.
"However, with our established growth strategy, centred on significant future store expansion within a structurally advantaged discount retail segment, and strong financial base, we believe that our future growth opportunity is greater than a year ago."
Pepco added 87 new stores in both Central and Eastern Europe and Western Europe and enlarged or relocated a further 18 stores, including opening further new stores in Italy and opening the first stores outside the EU in Serbia.
Its 318 existing stores were updated through store conversion programmes in both Pepco and Poundland, including 38 refits in Poundland which serve to introduce both a chilled and frozen proposition alongside the roll out of new price points to all categories.
The acquisition and integration, in the quarter, of Fultons Foods added significantly to group capability in the key expansion category of frozen food.
As an essential retailer, Poundland was able to trade throughout the quarter, albeit experiencing significantly reduced footfall as customers sought to both consolidate their shopping activity and avoid shopping centre or high street locations, where the majority of its stores are located.
Poundland’s revenue benefited from the continued strong performance of the Pep&Co clothing brand, which is now present in 342 stores, and the continued extension of product ranges to price points above and below the £1 anchor price point.