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.
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%.
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.
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.