• FY net sales up by 10.5%, to EUR10.9bn (US$14.5bn)
  • Biedronka leads charge in Poland
  • Tough consumer climate continues

Portugal and Poland-focused retailer Jeronimo Martins has seen strong growth at its Biedronka chain lift the group to a double-digit sales rise for 2012.

For the 12 months to the end of December, Jeronimo Martins reported net sales up by 10.5% on 2011, to EUR10.9bn (US$14.5bn). Sales at its Biedronka stores rose by 16% to EUR6.7bn, driven by 263 new store openings and also like-for-like growth of 6.4%.

Refurbishing existing stores as part of the firm's 'fresh focus' initiative helped Bierdronka to outperform the Polish food retail market, which slowed over the year "as a result of a more cautious consumer behaviour and a reduction in disposable income", the group said.

Elsewhere in the Jeronimo Martins business, Pingo Doce saw sales rise by 2.4% in a tough Portugal market that witnessed "sharp falls in consumption", the group said.

There was a more mixed performance from Recheio, which reported like-for-like sales down in the fourth quarter, reflecting the difficult economic climate.

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Press Release
With like-for-like sales outperforming their respective markets
Group sales increase 10.5% in 2012
Main highlights
↑ Consolidated sales increase 10.5% compared to 2011 and reach 10.9 billion euros
↑ Biedronka sells 6.7 billion euros and grows 16.3%
↑ Pingo Doce increases market share, with sales up 2.4%
↑ Recheio increases number of customers, offsetting market shrinkage
Lisbon, 10 January 2013 - In an increasingly demanding socio-economic environment, the Group managed to increase its consolidated sales by double digits, with a 10.5% rise to 10,876 million euros (11.5% at a constant exchange rate).
All the Group Companies, in both Portugal and in Poland, began 2012 with the clear objective of increasing their market shares. Even considering the slowdown in the growth of the Polish economy, Biedronka continues to strengthen its leadership of the food retail sector in Poland, presenting a sales performance clearly above the market average.
In Portugal, despite the sharp fall in consumption, Pingo Doce, Recheio and Unilever Jerónimo Martins increased sales above their respective sectors, strengthening their market shares.
The sales growth recorded over the whole year reflects the sustained ability to capture the preference of Portuguese and Polish consumers and reinforces the existing confidence in the suitability of the strategies adopted by the Group Companies.
Press Release
10 January 2013
↑ Sales rise 18% in local currency
↑ Like-for-like (LFL) sales increase 6.4%
↑ 263 new stores in the year
↑ More than 1,700 stores refurbished to new layout (Fresh focus)
↑Store chain represents around 62% of Group sales
In Poland, growth in the food retail sector slowed 1 over the year as a result of a more cautious consumer behaviour and a reduction in disposable income.
The performance of Biedronka was significantly better than the market and it achieved a sales volume of EUR 6.7 billion, which represents growth of 18% in zloty (16.3% in euros). The ambitious expansion plan, reflected in the opening of 263 new stores and a 16.3% increase in sales area, and strong LFL growth (6.4%), were the main drivers of this remarkable growth in business.
In the fourth quarter, with the layout conversion completed, LFL sales further increased, despite the slowdown in growth of the food retail sector and a lower inflation of the Company’s basket. Biedronka strengthened its price proposition, which enabled it to record its strongest relative performance.
In 2012, Biedronka was clearly the leading chain in Polish food retail, having captured a significant part of the increase in market share recorded by organised retail. The average basket and number of visits contributed positively to the Company’s good business year.
1 Source: Central Statistical Office of Poland (GUS)
Press Release
10 January 2013
↑Sales rose 2.4% ensuring greater market share
↑ Pingo Doce represents 28% of Group sales
In Portugal, the economic environment deteriorated faster than initially expected and worsened over the year. Alongside a clear tendency to transfer consumption to cheaper products within different categories (trading down), there was an increase in consumer price sensitivity.
In the fourth quarter, LFL sales fell -2.6%. For the year, LFL sales proved resilient, recording a fall of 0.6% in a market with an accumulated fall to November of 1.5%2.
Recognizing that its sales performance was less dynamic in the early months of the year, in May Pingo Doce implemented a commercial strategy based on creating additional opportunities for immediate savings on essentials products. Consumers reacted positively to this increase in price competitiveness, which meant that the year ended with sales growth of 2.4% and market share gains.
↑ Sales remain stable when compared to 2011
↑ Number of customers increases
↑ Recheio represents around 7% of Group sales
Despite the decline in the wholesale market, Recheio was able to maintain sales in line with the same period of the previous year, once again surpassing the performance of its sector.
2 Source: Index of turnover in retail trade, published by INE (Portuguese Statistic Institute)
Press Release
10 January 2013
In the fourth quarter, the Company’s LFL sales recorded a decline of 2.9%, reflecting a negative calendar effect and the deterioration of the market, particularly in the hotel and catering channel.
The Company’s strong competitive position enabled it to increase the number of customers, thus offsetting the decline in the average purchase amount, and to reach 793 million euros in sales for the year.
In Manufacturing, annual sales also remained in line with the previous year. Even considering the very adverse market conditions, increases in market share were recorded in key areas of the portfolio.
Marketing, Representation and Restaurant Services
In this business area, the very high pressure of the situation in Portugal resulted in a fall in sales of 1.9%.
Despite the difficult challenges faced by the different business areas throughout the year, 2012 was a year that proved the solidity of the Group and the capacity of its main Companies to present relatively strong and sustained performances.
Media Relations
Rita Fragoso
+351-21 752 61 14
Press Release
10 January 2013
Sales Performance
(Million Euros)
(w/o F/X)
Net Sales
JMR (Stores)
Manuf. & Others
(Million Euro)% total% totalPlnEuro% total% totalPlnEuroBiedronka6,73161.9%5,78758.8%18.0%16.3%1,86463.8%1,45957.9%18.8%27.8%Pingo Doce3,34530.8%3,24533.0%3.1%86929.8%86734.4%0.2%Recheio7937.3%7948.1%-0.2%1926.6%1987.9%-3.0%Manufacturing2292.1%2282.3%0.2%461.6%481.9%-2.3%Mkt. Repr. and Rest. Serv. 870.8%890.9%-1.9%260.9%251.0%2.3%Consolidation Adjustments-310-2.8%-304-3.1%1.7%-76-2.6%-78-3.1%-2.9%Total JM10,876100.0%9,838100.0%10.5%2,922100.0%2,518100.0%16.0%p.m. Pingo Doce3,0632,9902.4%797802-0.6% (store sales)D %Q4 12Q4 11D %20122011
Press Release
10 January 2013
Like For Like (LFL) sales: sales made by stores that operated under the same conditions in the two
periods. Excludes stores opened or closed in one of the two periods. Sales of stores that underwent
profound remodelling are excluded for the remodelling period (store closure).
Q1 12 Q2 12 H1 12 Q3 12 9M 12 Q4 12 2012 Q1 12 Q2 12 H1 12 Q3 12 9M 12 Q4 12 2012
Euro 13.1% 7.6% 10.1% 16.9% 12.5% 27.8% 16.3%
PLN 21.0% 15.6% 18.1% 16.8% 17.6% 18.8% 18.0% 9.5% * 4.7% * 7.0% * 5.5% * 6.5% * 6.4% 6.4% *
Pingo Doce 2.1% 6.1% 4.2% 2.5% 3.6% -0.6% 2.4% -1.6% ** 2.4% ** 0.5% ** -0.6% ** 0.1% ** -2.6% ** -0.6% **
Recheio 4.0% -1.0% 1.3% 0.0% 0.8% -3.0% -0.2% 2.6% -2.9% -0.4% -0.1% -0.3% -2.9% -0.9%
Manufacturing -1.5% 1.3% 0.1% 2.2% 0.8% -2.3% 0.2% -1.5% 1.3% 0.1% 2.2% 0.8% -2.3% 0.2%
Mkt. Repr. and Rest. Serv. -1.8% -1.0% -1.3% -7.4% -3.6% 2.3% -1.9% -1.7% 0.1% -0.7% -7.6% -3.3% -2.1% -2.9%
* Excluding days of closure for store layout conversion
** Ex-petrol LFL -0.8% 2.4% 0.8% -0.8% 0.3% -2.6% -0.5%
Total Sales Growth LFL Sales Growth
Q1 12 Q2 12 Q3 12 Q4 12 2012
Biedronka 1,873 37 39 66 121 11 2,125
Pingo Doce 369 0 2 1 0 0 372
Recheio 41 0 0 0 0 0 41
Closings *
Q1 12 Q2 12 Q3 12 Q4 12 2012
Biedronka 1,113,192 22,276 26,402 46,585 86,287 -6,264 1,301,006
Pingo Doce 451,207 0 2,248 1,500 0 2,367 452,588
Recheio 128,975 0 0 0 0 -320 129,295
* Including changes of sales area due to remodellings
Number of Stores
Sales Area (sqm)

Original source: http://www.jeronimomartins.pt/media/press-releases/pr_20130110_445_pt.aspx?lang=en