Jerónimo Martins profit rises 48% in the first nine months of 2021
The Portugal-based international Group registered a 48% rise in profits in the first nine months of the year, with sales increasing up to €15.2 billion.
Jerónimo Martins recorded a 47.7% rise in profits, to a total of €324 million, during the first nine months of 2021, according to a statement sent to the Portuguese Securities Market Commission (CMVM).
In the first nine months of the year, the Portuguese retailer’s sales totalled €15.2 billion, representing a 7.1% increase compared to the same period last year.
In the document published on Wednesday, chairman and CEO Pedro Soares dos Santos announced that the brands owned by the group ended the first nine months of the year “with stronger market positions as a result of consistent work to consolidate leadership in price and quality.”
“At two months from year-end, with the Christmas season approaching and despite the uncertainty on the pandemic evolution, the results attained so far reinforce our confidence in achieving the growth targets set for the year,” added the CEO.
If sales progressed 7.1%, “the growth registered in all brands contributed to improving operational leverage, driving EBITDA to increase ahead of sales by 11.1%.” according to Jerónimo Martins, this amount includes Covid-19 related costs of €13 million.
Net financial costs reached €119 million until September (compares to €140 million registered in the same period last year), “incorporating an exchange translation loss of €4 million, related to value adjustments in the lease liabilities in Poland denominated in euros that in 9M 20 were a loss of €20 million.”
Pingo Doce and Recheio increased sales and results, ” despite restrictions that still hamper the operating environment, particularly in the HoReCa segment”. In the first nine months, Pingo Doce increased sales by 3.9% and Recheio by 3.2%.
In Poland, Biedronka opened 75 shops (59 net additions) and refurbished 232 locations during this year, closing the first three quarters with a 10.3% growth in sales, in local currency. Hebe’s turnover had a similar performance (10.8%), with emphasis on online sales, which more than doubled.
Colombian Ara recorded a “very good sales” performance in Colombia (31.6% in local currency) during the period under review, benefiting from the improved “operating environment” in the third quarter, “as daily infections were controlled and social tensions, despite persisting, did not impact the country’s supply chain as in the second quarter.”
