Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 03 22T202453Z 1 LYNXMPEJ2L0VX RTROPTP 4 JERONIMO MARTINS RESULTS - Business Express

Inflation boosts Jeronimo Martins’ Q4 profit but dents margins

LISBON (Reuters) – Portugal’s second-largest retailer Jeronimo Martins on Wednesday posted a 23% jump in fourth-quarter net profit as soaring inflation boosted sales – especially in Poland, its key market – but also dented its margins.

The company, which netted 171 million euros ($185.65 million) from October to December, warned that food inflation remained high and only showed early signs of abating.

“Almost three months into 2023, inflation in the countries where we operate is more persistent than expected at the end of 2022, reducing consumer confidence and household purchasing power and continuing to put pressure on our margins and costs,” it said in a statement.

Consolidated sales in the last quarter of 2022 rose 23% to 7 billion euros, driven by the company’s market-leading Polish supermarket chain Biedronka, which posted a sales increase of 24% to 4.9 billion euros.

Although Polish consumers have grown more cautious and price-sensitive, spending on food has outpaced food inflation, which rose throughout 2022 to reach an average of 15.4%.

At home, supermarket chain Pingo Doce posted a 13.7% rise in sales to 1.2 billion euros, while in Colombia, its Ara stores booked 477 million euros in sales, up 38.5% from a year earlier.

Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 14.8% to 506 million euros in the quarter. The EBITDA margin fell to 7.2% from 7.8% a year earlier.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

“Although a disinflation scenario is expected for this year, it is still difficult to anticipate the level of disinflation for the second half of the year,” the company said.

For the full-year 2022, Jeronimo Martins’ profit rose 27.5% to 590 million euros, while EBITDA increased 17% to 1.85 billion euros. Sales grew 21.5% to 25.4 billion euros.

The company added its capex programme is expected to be in line with 2022, with 45% of it in Poland.

($1 = 0.9211 euros)


(Reporting by Patricia Vicente Rua; Editing by David Latona and Richard Chang)


Recent Post: