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Jerónimo Martins Posts 11% Sales Increase, But Profits Decline

Published on Oct 26 2017 9:40 AM in Retail tagged: Trending Posts / Portugal / Pingo Doce / Jerónimo Martins / Biedronka

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'.

Growth Trends

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

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