Jerónimo Martins Posts 11% Sales Increase, But Profits Decline
Portuguese retailer Jerónimo Martins has ended the first nine months of 2017 with a net profit of €285 million, down 43% year-on-year. However, if the sale of subsidiary Monterroio is excluded, the retailer's net profit was up by 7.1%.
Consolidated sales increased 11% to €11.9 billion, boosted by activities in Poland, where the company operates the supermarket chain Biedronka.
Like-for-like (LFL) sales were up 6.6% in the nine month period, which the company attributes to the 'strong performance' of Biedronka and Recheio, and the 'resilience of Pingo Doce'.
In Poland, Biedronka registered a 13.1% increase in sales to €8.1 billion, while LFL growth was 9%. The banner opened 46 new stores and refurbished 150.
In Portugal, sales at supermarket chain Pingo Doce grew 2.4% to €2.69 billion, with LFL growth of 0.3%. Seven new locations were added to the network, and 19 outlets were refurbished.
Meanwhile, growth at Portuguese cash & carry unit Recheio was 7.6%, with sales reaching €713 million, and LFL growth of 6%.
Turnover at Colombian supermarket chain Ara grew 36% to €289 million. In the first three quarters the banner opened 92 stores, taking the total to 312.
At group level, Jerónimo Martins invested a total of €422 million into its operations, 40% of which was directed to Briedronka and 27% to Ara.
Last month, the retail group unveiled a new corporate identity.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine