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Jeronimo Martins SGPS SABiedronka retailer wants to improve LFL sales dynamics in 2025
Poland's largest retail chain Biedronka, owned by Portuguese Jeronimo Martins. which reported a 0.3 percent drop in LFL sales in 2024, is hoping for improved dynamics this year, although the first quarter may still be difficult, company representatives told journalists.
"We will work hard to improve our LFL sales dynamics this year. The first quarter may be tough due, among other things, to the postponement of Easter in the calendar, but we are hoping for better results in the rest of the year," the CEO of Biedronka Luís Araújo told reporters.
As he pointed out, the market was stagnant in January in terms of volumes.
"We believe that the situation will improve during the year, probably at the end of the first half of the year and in the second half of the year," the CEO said.
He reiterated that the Polish customer is still very cautious when shopping, pays attention to prices and is still willing to save.
This year's sales, as CEO Araújo added, could be affected by the expected rise in inflation, albeit at different levels, depending on the product category.
He pointed out that the agricultural market could be affected by the weather, including the prospect of drought, which would affect grain prices.
Biedronka's CEO believes that the Polish market has great growth prospects, although one of the challenges is the country's demographic situation.
"I am convinced that Poland has a huge potential. It shows good macro indicators, but like every country it has its challenges. In recent years, such a challenge has been the decline in population, the lower fertility rate. There have also been additional challenges in the labour market," Araújo said.
He added that a potential risk in the medium term is the geopolitical situation.
Asked about the chain's approach to trading Sundays, he said that the company had not been satisfied with the current legislation, which allows some exceptions and allows some chains to operate on non-trading Sundays.
Biedronka's PLN sales in 2024 were up 4.1 percent, while comparable LFL sales were down 0.3 percent last year. In euro, Biedronka's shop sales amounted to EUR 23.6 billion, up 9.6 percent year on year.
Biedronka's EBITDA amounted to EUR 1.814 billion, down 1.3 percent year on year, and in PLN it was down 6.3 percent in annual terms. Biedronka's EBITDA margin was 7.7 percent, down from 8.5 percent in 2023. Jeronimo Martins said in a press release that the decline in EBITDA margin was influenced by price investments and the decision to significantly increase wages.
Capital expenditure at Biedronka chain amounted to EUR 418 million in 2024 and reached EUR 1 billion across the group.
186 new Biedronka shops were opened (161 net) and 280 outlets were modernised. At the end of 2024, the Biedronka chain had 3,730 shops in Poland. This year, Biedronka wants to open between 130 and 150 net new shops in Poland.
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