Jerónimo Martins, a Portuguese retailer with significant operations in Poland, today (28 July) posted a 2.5% increase in half-year profits on “strong” growth in sales.
The company booked net profit of EUR101.7m (US$132.2m) for the six months to the end of June, up 2.5% on the first half of 2009. EBITDA grew 20.1% to reach EUR263.8m.
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Turnover was up 19.6% at EUR4.04bn and the retailer attributed its revenue growth to “strong” like-for-like sales growth of 8.2%, the contribution of new stores as well as the 11.8% appreciation of the Polish zloty against the euro.
Jerónimo Martins’ Polish Biedronka unit posted an 18.1% increase in sales for the first half of the year as a result of like-for-like sales growth of 10.5%, when measured in local currencies. The unit posted EUR2.22bn sales for the half, accounting for more than half of the retailer’s group sales.
The company’s Pingo Doce banner in Portugal posted 8.8% like-for-like sales growth, reflecting an approximately 11% volume increase, which the company attributed to its strong business model.
Rechieo saw like-for-like sales increase 3.1%, impacted by pressure from the macroeconomic environment as the chain operates across both traditional retail and HoReCa. It posted EUR336.1m sales for the half year.
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By GlobalDataCEO Pedro Soares dos Santos said: “The positive signs received from the first-half results allow us to anticipate a continued solid performance, boosted by a greater sales density, that should enable us to reach the objectives set by the group for the full year.”
Jerónimo Martins said it plans to open some 100 new Biedronka outlets in Poland as well as refurbishing another 70, which should take up the lion’s share of the group’s investment for the year, which is estimated to reach around EUR400m.
