Jerónimo Martins’ profit up to 79%. Company invested €200M in 2021 H1

  • ECO News
  • 29 July 2021

Jerónimo Martins recorded sales of almost €10 billion in the first semester. The retailer invested €200 million of the €700 million planned for this year.

Jerónimo Martins, registered a 78.9% increase in profits to €186 million in the first half of the year, despite the impact of the Covid-19 pandemic. The Portuguese company also announced that invested around €200 million during this period of time. 

In a statement sent to the market (CMVM), the retailer revealed sales reached €9.9 billion in the same period, representing a 6.3% year-on-year increase.

In Poland, the main market for Jerónimo Martins, the Biedronka branch saw a sharp 6.8% sales rise to €7 billion, with the retailer referring to an increase in the number of store visits due to a “backdrop of a more controlled pandemic situation and an easing of restrictive measures.”

The Polish market represents 70% of the national retailer’s turnover, and Jerónimo Martins continued to open stores: it opened 53 more in the last six months.

Regarding Pingo Doce, it recorded a sales growth of 4.6% to €1.9 billion. “The brand maintained strong commercial activity” despite the restrictions, says Jerónimo Martins. Also in Portugal, Recheio registered sales of €398 million, in line with the same period last year.

The Colombian retailer Ara saw its invoicing increase by almost 12% to €473 million, which is also a market where Jerónimo Martins is in full expansion: it opened 41 new stores in the first semester.

Investment hits €200 million

Jerónimo Martins also announced investments of around €200 million in the first half of the year, of which 60% (120 million) were allocated to Biedronka, in line with the plan announced last year.

The retailer expects to invest up to €700 million this year. However, according to the outlook for 2021, it will depend on the restrictive measures that may still be applied in the markets where it operates.

The investment includes adding 100 new locations to the Biedronka network and refurbishing between 250 and 300 existing stores. In Portugal, the plan is to open a dozen Pingo Doce stores and refurbish another 15, while Ara (Colombia) is preparing to add more than 100 locations to its store network.