Jerónimo Martins Sees Sales Rise 7.3% In First Nine Months Of 2018
Portuguese retailer Jerónimo Martins has posted a 7.3% increase in sales in the first nine months of the year, to €12.8 billion.
EBITDA for the period rose 6% to €709 million, while net profit was €242 million, up 2.4% compared to the same period last year.
“Our steady focus on sales growth and consumer preference across all banners produced a very good performance in the first nine months of the year,” commented Pedro Soares dos Santos, the group’s chief executive.
In Poland, which accounts for the majority of the group’s sales (67.4%), sales growth stood at 6.5%, at €8.6 billion, while its Biedronka business gained market share over the period.
The group added 54 new stores to its portfolio in Poland, as well as refurbishing 153 stores, over the period, leaving it with 2,850 stores across Poland.
Biedronka also performed well despite the recent introduction of a Sunday shopping ban, with Pedro Soares dos Santos saying, “in a not-yet-stabilised context of adapting to the Sunday ban, Biedronka continued to gain market share (+1.7p.p. ytd August) and to secure its operational profitability.
“This performance was achieved with 16 fewer trading days and lower food inflation.”
Also in Poland, its Hebe drugstore operation posted 24.4% growth in the period, to record €144 million in sales.
In its home market of Portugal, its Pingo Doce operation saw sales rise 5.1% year-on-year, to €2.8 billion, with investments in promotions, private label launches, and packaging innovation during the period.
Its Recheio wholesale business, meanwhile, saw total sales up 3.5% to €739 million.
“Pingo Doce and Recheio delivered a remarkable performance driven by effective commercial actions,” said Soares dos Santos.
Lastly, in Colombia, its Ara business saw a year-on-year increase of 52.2% (in euro terms) to post €439 million in sales.
“Based on our performance so far, I am confident that all our models will deliver a solid Q4 in terms of both sales’ growth and profitability,” Soares dos Santos added.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.