Jeronimo Martins posts EUR 156 mln attrib. net profit in Q2, down 28.1 pct y/y

Portugal's Jeronimo Martins Group, the owner of Poland's largest retail chain Biedronka, posted an attributable net profit of EUR 156 million in the second quarter of 2024, down by 28.1 percent year on year, the company said in its Q2 financial report on Wednesday.

Revenues rose by 6.8 percent to approximately EUR 8.23 billion in the period. The company's EBITDA amounted to EUR 532 million, down 4.8 percent year on year.

In the whole first half of 2024, the group's EBITDA rose by 3.5 percent year on year to EUR 1.040 billion with a revenue amounting to EUR 16.3 billion, down 12.3 percent year on year. The net profit attributable to JM amounted to EUR 253 million, down 29.1 percent year on year.

Revenues of the Biedronka chain increased by 4.5 percent year on year in PLN in the first half of 2024 to EUR 11.5 billion and increased by 0.1 percent in PLN in the second quarter amounting to EUR 5.8 billion.

LFL sales decreased by 0.2 percent in the first half of the year and decreased by 4.6 percent in the second quarter.

Biedronka's EBITDA amounted to EUR 878 million in the first half of 2024 versus EUR 872 million a year prior. The margin fell to 7.6 percent from 8.5 percent in the previous year period.

"In a period when our main banner anticipates continuing to operate with basket deflation, the execution of this strategy will continue to pressure the EBITDA margin. This pressure may be higher in H2 than in H1," Jeronimo Martins said.

Jeronimo Martins' CAPEX in the first half of the year amounted to EUR 396 million, compared to EUR 459 million a year ago, including Biedronka's CAPEX at EUR 121 million.

Biedronka opened 60 (51 net) shops and carried out 104 renovations in the first half of 2024. It had 3,620 shops at the end of June.

Biedronka plans to add 130 to 150 locations (net) to the network. The refurbishment programme will cover approximately 275 shops, the press release said.

pel/ mik/