Jeronimo Martins Q3 2024 Results

Jeronimo Martins, the international food retailer, reported a 10.3% increase in total sales for the first nine months of 2024, reaching EUR 24.8 billion despite a challenging economic environment. The company, which operates the Biedronka banner in Poland, experienced basket deflation but still achieved sales growth and market share expansion.

Key Financial Metrics

• EBITDA rose by 2.7% to EUR 1.6 billion, but the EBITDA margin decreased to 6.6%.
• CapEx guidance was revised down to just over EUR 1 billion for the year.

Key Takeaways

• Total sales increased 10.3% to EUR 24.8 billion.
• Like-for-like sales growth adjusted to 0.3% from a previously reported 3%.
• 104 new stores opened and 156 refurbished in Poland.
• Cautious outlook for the remainder of the year due to market uncertainties.

Company Outlook

• Management maintains a cautious outlook, noting a solid balance sheet with EUR 413 million net cash.
• Challenging Q4 anticipated due to a strong comparison base from the previous year's volume growth.

Operational Highlights

• Gross margins in Poland decreased by 20 basis points due to pricing investments and rising operational wages.
• Consumer demand in Poland is weak, focusing on savings which impact food spending.
• However, despite basket deflation, both sales and market share in Poland grew.

Summary

Jeronimo Martins adapted to shifting market conditions, achieving notable sales growth amid economic pressures, while strategically managing costs. Long-term profitability remains a priority.

Full transcript available upon request.