Jerónimo Martins Sees 9.4% Growth in Sales In Q1
Portuguese retailer Jerónimo Martins reported a 9.4% growth in total net sales to €3.2 billion in the first quarter of 2015.
In Poland, where its local unit Biedronka is the market leader, sales were up 11.2% and comparable sales grew by 2.9%, despite the further drop in food prices. In Portugal, where it is the second biggest retailer, the Pingo Doce chain recorded a 4.2% increase in comparable sales (excluding fuel).
Group EBITDA increased by 4.7% to €165.7 million and net income attributable to JM increased 3.9% to €64.8 million, including the start-up costs for Ara (Colombia) and Hebe (drugstore chain in Poland).
Consolidated sales reached €3.18 billion, an increase of 9.4% over the first quarter of the previous year (+9.6% excluding the negative exchange rate effect). Both in Poland and Portugal, promotions and price competitiveness continued to dominate the food retail sector.
In Poland, food deflation increased, reaching -3.7% in the first quarter, compared with -2.6% in the last quarter of 2014. Total sales of Biedronka grew 11.2% to €2.17 billion. EBITDA grew 8.6% to €137 million, while EBITDA fell to 6.3% from 6.5% a year ago. In the first three months of the year, 58 new stores were opened, taking the total to 2,639.
In Portugal, food inflation returned to positive ground, reaching an average of +0.1%, compared to -0.5% in the fourth quarter of last year. JM’s Portuguese units (Pingo Doce and Recheio) registered an EBITDA of €47 million, in line with the previous year, while EBITDA margin was 30 base points down y/y.
Backed by ongoing promotional activities, Pingo Doce maintained a strong growth in volumes that more than offset the internal food deflation. Total sales grew 3.9% (+4.7% excluding fuel) to €772 million and comparable sales (excluding fuel) increased 4.2%. Two new Pingo Doce stores were opened in the quarter, taking the total to 382.
Cash and Carry outlet Recheio registered a comparable growth of 4.7% in the quarter, with no changes to its sales network of 41 stores.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic