In This Article:
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Net Cash Position: EUR430 million by the end of September, excluding IFRS 16.
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Sales Growth: Total sales grew by 10.3%, 4.7% at constant exchange rates, reaching EUR24.8 billion.
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Group Like-for-Like Sales: 3.0% with volume growth offsetting basket deflation.
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Biedronka Sales: Grew by 10.4%, plus 3.9% in local currency, reaching EUR17.5 billion.
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HeBe Sales: Grew by 20.6% in local currency, with a like-for-like of 11%.
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Pingo Doce Sales: Increased by 4.7% to EUR3.7 billion, with a 4.4% like-for-like without fuel.
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Recheio Sales: Grew by 1.8% to reach EUR1 billion.
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Ara Sales: Increased by 10.9% in local currency, 21.5% growth in euros, reaching EUR2.1 billion.
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EBITDA Growth: Increased by 2.7% in euros, a reduction of 2.9% at constant exchange rates, reaching EUR1.6 billion.
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Group EBITDA Margin: Fell to 6.6% from 7.1% in the 9 months of 2023.
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Net Earnings Per Share: Fell by 13.8%, excluding nonrecurrent other profit and losses.
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Cash Flow: Negative EUR387 million, impacted by the transition from high food inflation to deflation.
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Store Openings: Biedronka opened 104 stores, Ara opened 87 stores, and Pingo Doce opened 6 stores.
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CapEx Guidance: Expected to be just over EUR1 billion for 2024, down from EUR1.2 billion.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Jeronimo Martins SGPS SA (JRONY) achieved a 10.3% sales growth, 4.7% at constant exchange rates, reaching EUR24.8 billion.
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The company maintained a solid balance sheet with a net cash position of EUR430 million by the end of September.
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Biedronka and Pingo Doce continued to grow volumes and gain market share despite operating with basket deflation.
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Ara improved its EBITDA margin by 127 basis points in the first 9 months, showing effective cost management.
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HeBe's sales grew by 20.6% in local currency, driven by strong e-commerce performance and a like-for-like growth of 11%.
Negative Points
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EBITDA margin was pressured by operational deleverage from basket deflation and significant cost inflation.
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Net earnings per share, excluding non-recurrent items, fell by 13.8%.
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Cash flow was negative EUR387 million, impacted by the transition from high food inflation to deflation.
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The company faced significant wage increases, particularly in Poland, impacting operational costs.
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The HoReCa channel in Portugal showed a slowdown trend, affecting Recheio's sales performance.
Q & A Highlights
Q: Could you please quantify the basket deflation in Q3 in Poland? And how has it evolved through the quarter? Also, can we assume that gross margin in Poland was flat? A: Basket deflation in Poland slowed down, with Biedronka operating at a slightly softer rate of just over 4% in Q3 compared to slightly below 6% in the first half. The gross margin in Poland was not flat; it was down due to increased price investments, with around 20 basis points invested in the gross margin.