Portuguese retailer Jéronimo Martins has reported a 7.9% rise in net profit, surpassing for the first time the €1 billion EBITDA mark, boosted by businesses in Poland.
Net profit totalled €433 million, Jéronimo Martins, the largest food retailer in Poland and second-largest in Portugal, said in a statement.
Poland Performance
Sales in local currency at its Biedronka supermarket chain in Poland jumped 8.8% in 2019, despite the new regulation that prohibits opening supermarkets on some Sundays.
In the same statement, it said the retail sector in Poland is adapting to the gradual implementation of the Sunday trade ban, which resulted in 13 fewer trading days last year on top of the 21 already lost in 2018.
Also in Poland, sales at the group's health and beauty chain Hebe increased 25.9% last year.
One of Jéronimo's biggest achievements last year was reaching the €1 billion EBITDA mark, 8.9% above 2018.
The company explained the growth "reflects the resilience of Biedronka's EBITDA margin", as well as improvements at its domestic Pingo Doce supermarket chain and other businesses.
Biedronka recorded an EBITDA of €918 million last year, an increase of 7.9% compared to 2018.
Challenges Ahead
However, the company has some challenges ahead, especially in Poland.
"In 2020 the food retail sector (in Poland) will be impacted by the final stage of the Sunday ban, with the incremental loss of seven days of trading," it said.
In addition the introduction of a retail tax remains on hold but could be implemented in July this year if not postponed again.
Under the scheme, retailers with monthly revenue of more than 170 million zlotys will be taxed more heavily than smaller rivals.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
