Retail

Jerónimo Martins Posts 21.5% Growth In Group Sales In FY 2022

By Dayeeta Das
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Portuguese retail group Jerónimo Martins has reported 21.5% year-on-year growth in group sales to €25.4 billion in its financial year 2022, according to preliminary figures.

Strong performance across all banners drove like-for-like sales to 19.6%, the company added.

In the fourth quarter, sales increased by 23.0% (up 26.0% at constant exchange rates) to €7.0 billion, with like-for-like sales of 21.4%.

The company believes its good performance in the fourth quarter is a result of consumers' recognition of its efforts in controlling prices, as well as creating savings opportunities in the three countries where it operates.

Chief executive Pedro Soares dos Santos commented, "2022 will stay in our collective memory as the year of the invasion of Ukraine by the Russian Federation and the consequent war that is ravaging the territory for almost one year. [...]

"As such, 2022 was another year of hard work for our banners that were able to overcome the difficulties of a highly volatile context made even more challenging by mounting inflation and hikes in interest rates."

He added, "Not ignoring inflation, it is with great satisfaction I note that the group surpassed the €25 billion sales milestone in the year when Jerónimo Martins celebrated 230 years in business.

"We know that this long and successful history is the result of many generations’ ability to balance short-term delivery with long-term growth vision."

Performance In Poland

In Poland, food consumption grew above the respective inflation rate of approximately 15.4%, despite a cautious approach by consumers due to the pressure of price increases due to the Ukraine war.

Biedronka saw sales growth of 24.1%, (like-for-like growth of 20.6%) during the financial year, to €17.6 billion.

In the fourth quarter, sales were up 24.1% year-on-year, amounting to €4.9 billion.

"In Poland, Biedronka reinforced its price leadership, leveraging on its strength to create relevant savings opportunities throughout the year," Soares dos Santos added.

The retailer opened outlets in 157 new locations, adding 145 stores to its network, exceeding the target initially set for the year. It refurbished a total of 367 stores over the period.

Health and beauty retail chain, Hebe, strengthened its value proposition and like-for-like sales growth of 24.8% to €358 million.

Its online channel reported a 'solid' performance, accounting for approximately 14% of total sales during the financial year.

The chain opened outlets in 30 new locations in the country to close the year with 315 stores in its network.

Following a trial period, Hebe opened its online store in Czechia and Slovakia at the end of 2022.

Portugal

In Portugal, the generalised rise in prices that led food inflation to reach 13.0% put pressure on families' disposable income and drove negative volumes in food consumption and the trend to trade down, Jerónimo Martins noted.

Pingo Doce generated sales worth €4.5 billion, up 11.2% year-on-year and like-for-like sales (excluding fuel) at 9.4%, driven by reinforced price positioning and focus on promotional campaigns to mitigate the impact of inflation on consumers.

In the fourth quarter, it launched the ‘Essentials at 2021 Prices’ campaign and sales reached €1.2 billion, up 13.7% compression with the same quarter in 2021.

Pingo Doce opened 10 new stores (seven net additions) and refurbished 37 locations during the financial year.

Cash-and-carry retail arm, Recheio’s sales reached €1.2 billion, up 27.7% on the previous year, as the HoReCa channel witnessed recovery.

Colombia

Food inflation in Colombia reached 25.0% in 2022, impacting consumption and resulting in declining volumes and trading down in the market.

The retailer's Ara chain saw like-for-like sales growth of 35.7% during the financial year, to €1.8 billion.

Soares dos Santos commented, "In Colombia, the focus on growth led Ara to reinforce its price positioning, the investment in quality and differentiation of the offer and to accelerate store openings.

"The banner inaugurated the symbolic 1,000 stores in the last quarter of the year."

© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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