Jerónimo Martins ended the first quarter with consolidated sales of 4,2 billion euros, representing an increase of 1,1% compared to the same period last year.
In a statement, the Portuguese group also highlights the reduction of seven days of sales in the quarter, due to "the absence of Easter and the gradual ban on opening on Sundays in Poland ". At constant exchange rates, sales grew 3,2% with a neutral Like-for-Like (LfL), while consolidated EBITDA was €214 million (down 0,6% compared to the same period last year), with net income reaching €72 million, 14,5% less than the €85 million reported in the same period last year.
During the period to which the results now presented refer, Jerónimo Martins invested 95 million euros, of which 46% was allocated to Biedronka and 26% was invested in Portugal. Net debt was 100 million euros, with gearing at 4,8%, while cash flow was negative six million euros, which contrasts with negative 83 million euros in the first quarter of last year.
“ We entered 2019 with strength and the results of the first quarter reflect this dynamic. All our businesses recorded very good sales and profitability performances, which gain even more relevance in a context of a negative calendar and an increase in the number of days of mandatory store closures on Sundays in Poland. I am confident in our ability to overcome the challenges ahead and continue to grow above the market throughout 2019 ,” says Pedro Soares dos Santos, president and CEO of Jerónimo Martins.
Jerónimo Martins Sales Performance – 1st Quarter of 2019
Biedronka accounts for almost 70% of sales.
By brand, Biedronka's sales rose 2% in local currency (down 0,8% in euros) to €2.922 million, with the brand under which the group operates in the Polish market accounting for 68,2% of the results obtained in the quarter. Biedronka also opened eight new stores and closed six (two net additions).
Meanwhile, Hebe's sales reached 56 million euros, increasing 23,3% in local currency (19,8% in euros), with an LFL of 5,4%, " even despite the fewer number of sales days resulting from the ban on opening stores on Sundays ."
In Portugal, where food inflation was 0,9% during the period, the company states in a press release sent to the CMVM (Portuguese Securities Market Commission), the consumer environment remained favorable and highly receptive to promotions, a context in which “ Pingo Doce continued to fuel its commercial momentum, growing its sales by 2,6% to €905 million. Including the negative impact of the calendar, LFL performance (excluding fuel) was 1,6%. In the first quarter, Pingo Doce opened two new stores .”
In turn, Recheio increased total sales by 1,9%, reaching €214 million, representing a 3,7% growth in sales with the same number of stores and locations, although the brand's export activity contributed " less than in the same period last year to the brand's total sales ".
In Colombia, Ara's sales reached €169 million, representing a 28% increase in local currency (equivalent to 26,6% in euros). In terms of stores, Ara opened nine stores during the period analyzed and is prepared to execute its expansion program, adding two distribution centers and approximately 150 stores this year.
