Portuguese retailer Jerónimo Martins has said that its Polish retail operation, Biedronka, has posted a 2% increase in first quarter sales (in local currency), despite the impact of the Sunday shopping ban on its operations.
The Sunday trading ban came into effect last March.
Biedronka accounts for 68.2% of the Portuguese group's sales.
During the quarter, Biedronka held a number of themed campaigns around Mediterranean products and Ukranian products, as well as running an increased level of promotional activity, as it sought to offset a 'highly competitive' retail environment, the retailer said in a statement.
Domestic Operations
In Portugal, the group's Pingo Doce retail operation posted a 2.6% increase in sales growth in the quarter, to €905 million, with the period seeing the launch of a new campaign to raise awareness of increased salt intake, as well as a widespread private label launch.
Its Recheio cash and carry business saw 1.9% sales growth (+3.7% in like-for-like terms), to €214 million, while its Hebe drugstore chain posted a 23.3% increase in sales to €56 million.
Elsewhere, in Colombia, the group's Art business posted a 28% increase in sales, with the opening of nine new stores in the quarter.
Overall, the three-month period saw Jerónimo Martins post a 1.1% increase in sales to €4.2 billion, despite the later falling of Easter.
Consolidated EBIDTA stood at €214 million and net profit amounted to €72 million.
Between January and March, the group invested €95 million, 46% of which was invested in Poland, and 26% in Portugal.
Strong Start
“We had a strong start to the year and this first quarter results reflect that momentum," commented chairman and CEO Pedro Soares dos Santos
"All our businesses recorded a very good performance both in sales and profitability. This performance gains increased relevance given the negative calendar effect and the additional days of Sunday trading ban in Poland," he added.
"I am confident in our ability to overcome the challenges in sight and to continue to grow above the market for the remainder 2019.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
