Jeronimo Martins reported its first half (H1) 2014 results where net sales increased 7.2% year-on-year (y-o-y) to EUR 6,051 million. Second quarter (Q2) 2014 net sales increased 12.3% to EUR 2,076 million y-o-y. 

Highlights
Biedronka rolled-out card payments in 1,400 stores during the period

H1 2014 Results

  • Biedronka net sales increased 9.1% to EUR 4,029 million; in local currency the sales increased 6.6% y-o-y. LFL decreased 1.2%.
  • Pingo Dolce net sales increased 2.6% to EUR 1,556 million. LFL excluding petrol increased 2.4% while LFL including petrol increased 1/5%.
  • Recheio cash and carry net sales decreased 0.3% to EUR 374 million. LFL decreased 0.3%.
  • The Ara and Hebe businesses reported sales of EUR 63 million compared.


Q2 2014 Results

  • Biedronka net sales increased 12.3% to EUR 2,076 million; in local currency the sales increased 11.5% y-o-y. LFL increased 0.3%
  • Pingo Dolce net sales increased 2.9% to EUR 812 million. LFL excluding petrol increased 2.7% while LFL including petrol increased 1.9%.
  • Recheio cash and carry net sales decreased 0.4% to EUR 201 million. LFL decreased 0.4%.


Stores
At the end of the period the retailer operated 2,405 Biedronka stores, 377 Pingo Dolce stores and 41 Recheio stores.

Profit & Loss H1 2014
Consolidated Group EBITDA decreased 2.3% to EUR 341 million.

  • The EBITDA margin was 5.6% decreasing 60 basis points.
  • Biedronka EBITDA margin decreased 80 basis points at 7%.
  • Pingo Dolce EBITDA margin reported of 4.9%, in line with previous year.
  • Recheio EBITDA margin decreased 50 basis points to 4.9%.

Net profit decreased 12.4% to EUR 145 million.
Capital expenditure reported of EUR 172 million out of which 87% was invested in Biedronka.

Guidance
Jeronimo Martins guidance remains unchanged, expecting to reach sales growth achieved in 2013.
Total capital investment expected during 2014 between EUR 600 to EUR 700 million.

  • In Poland the retailer plans to open 300 new Biedronka stores and three new distribution centers; Hebe operations are expected to expand with around 50 new stores and improve performance.
  • In Portugal the retailer plans to open 10 new Pingo Doce stores, complete the construction of a new distribution center and reorganize its logistics operations.
  • In Colombia the retailer plans to open a minimum of 50 Ara stores.

The retailer expects EBITDA to be in line with the development in the first half of 2014.