Portuguese retailer Jerónimo Martins has posted a 52% jump in first-quarter net income as its key market Poland led a rise in sales, but warned of uncertainty ahead due to the conflict in Ukraine, inflation and other factors.
The company booked a net profit of €88 million ($92.35 million) between January and March, up from €58 million a year earlier, when it was marked by the COVID-19 pandemic and also included the Easter holiday season.
"Significant uncertainty prevails, linked to the developments of the war in Ukraine and the evolution of the COVID-19 pandemic", chief executive Pedro Soares dos Santos said in a statement.
Consolidated sales in the first three months of the year rose 15.2% to €5.5 billion, driven by its market-leading Polish retail chain Biedronka, whose sales increased 13.4% to €3.8 billion.
In Portugal, sales at the Pingo Doce supermarket chain rose 6% to €985 million.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 15.5% to €372 million in the quarter.
Soares dos Santos added, "Despite the uncertainty blurring the horizon, we have no doubts about our first strategic priority – to do our part in a collective effort to help control inflation. We will achieve this goal by defending low prices and investing in strong promotional campaigns to create valuable opportunities for families, strengthen our banners' competitive positions, and protect volumes growth."
In March of this year, the company reported a 49% jump in fourth-quarter net income as its key Polish market led a rise in consolidated sales, but warned on the impact of rising inflation and the conflict in Ukraine.
News by Reuters, additional reporting by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.