Jeronimo Martins offered an upbeat take on its nine-month results, even as the Portuguese retailer slightly lowered its full-year outlook.
The company said that consolidated sales rose 11.5% in the first nine months of the year, rising to EUR8.7bn (US$11.73bn). In each of the group’s main markets – Poland and Portugal – Jeronimo Martins booked like-for-like sales expansion of 4%.
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EBITDA increased 7.5% to EUR573.2m. EBITDA margin slipped to 6.6% from 6.8%. Difficult trading conditions have meant that Jeronimo Martins has had to step up its investment in pricing, particularly in the Polish market where it competes against the likes of the UK’s Tesco.
CEO Pedro Soares dos Santos emphasised the firm’s formats “reinforced their leadership position” in the face of a “tougher and more challenging trading environment”.
Net earnings increased 2.7% to EUR280.5m as Jeronimo Martins stepped up investment in new business, including expansion into Colombia, and store openings. Excluding these investments, the company said net profit was up 11.8%.
However, Jeronimo Martins revised its full year projections downwards on the back of the result. The company said that it now anticipates double-digit full-year sales, with EBITDA growth trailing. Previously, Jeronimo Martins had suggested that earnings would be in line with sales growth.
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By GlobalDataThe firm also lowered its projected capital expenditure to EUR600-650m versus EUR650-700m previously.
Click here to view the release from Jeronimo Martins.
