Jerónimo Martins reports 5.6% consolidated sales growth in its 1st Quarter 2014 Results

In a highly competitive environment in Poland and in Portugal 

CONSOLIDATED SALES GROWTH 5.6% (AT CONSTANT EXCHANGE RATES)

First quarter highlights for the Group

  • Consolidated Sales growth 5.6% (at constant exchange rates) and reached 2,912 million euros
  • Operational Cash Flow (EBITDA) of 158 million euros
  • Investment of 109 million euros, with 87% channelled to Biedronka
  • Profit is 62 million euros, with the main contribution coming from Biedronka
  • Market shares in Poland and in Portugal strengthened
  • The new businesses (Hebe and Ara) recorded sales of 29 million euros in the quarter in which Ara celebrated its first year of operations in Colombia

Lisbon, 2014-5-1 — /EPR Retail News/ — In the first three months of the year, the consolidated sales of the Jerónimo Martins Group rose 5.6% (at constant exchange rates) to 2,912 million euros, with Biedronka strengthening its leading position and Pingo Doce maintaining a strong competitive momentum that enabled it to increase sales by 2.3%.

The Group’s two Food Retail chains generated 92.5% of consolidated sales, with the Polish company representing 67% of the total, in line with the first quarter of the previous year.

Consolidated sales growth was mostly supported by the opening of 264 stores over the 12 months ending 31st March.

The consolidated EBITDA was 158 million euros. The EBITDA margin was 5.4%, 60 basis points lower than in the same period of the previous year (6%), as a result of the negative effect of the Easter calendar (not in the same quarter this year), additional costs of 2.4 million euros incurred with
the Group’s new businesses (Hebe and Ara), together with ongoing investment in promotional initiatives at Biedronka and Pingo Doce.

The net profit attributed to the Group was 62 million euros, 13 million less than in 2013, in a quarter in which capex (capital investment) reached 109 million euros, of which 87% allocated to Biedronka.

Pedro Soares dos Santos, the Group Chairman and CEO, considers that “Jerónimo Martins’ results reflect Biedronka’s slow start to the year. We will continue to address the challenges of a very competitive market and we remain fully committed to further strengthening our leadership position and
relevance for the Polish consumers.

In Portugal, Pingo Doce delivered strong sales growth, also in like-for-like terms. After one year since the start-up in Colombia and approaching 40 stores, Ara is performing according to plan.

All in all, the solid cash generation from our main businesses allows us to keep investing in their development, whilst at the same time building our new businesses and preserving a strong balance sheet.”

Download the full Press Release

Media Relations
Rita Fragoso
rita.fragoso@jeronimo-martins.pt
+351-21 752 61 14