Portuguese retail group Jerónimo Martins has posted consolidated year-on-year sales growth of 5.7% to €8.9 billion in the first half of its financial year.
Like-for-like sales in the group, which operates Biedronka in Poland and Pingo Doce in Portugal, was up 3.9% during this period, the company said.
The retail group’s EBITDA increased by 5.6% to €471 million.
Net profit increased 0.7% to €181 million, despite having eight fewer days of sales in Poland compared to the same period last year.
Other Highlights
The company invested €238 million in the first half of the year, maintaining its total CAPEX estimate of €700 - €750 million for the year.
The company opened 73 new stores during this period, and the total number of employees in the group exceeded 110,000.
It provided more than €21 million in aid to the more vulnerable populations in the countries in which the group operates.
It also donated more than 6,500 tonnes of food.
Divisional Performance
The retail group’s polish arm, Biedronka, saw a 7% sales growth to more than €6 billion, while like-for-like sales grew 3.7%.
The supermarket chain attributed the growth to the implementation of promotional strategies comprising attractive and differentiating campaigns.
It also opened 27 new stores in the first six months which contributed to an increase in total sales.
In Portugal, Pingo Doce saw a year-on-year sales rise by 4.1% to €1.9 billion in the first six months.
The performance was driven by intense commercial and promotional activities lined up by retailer amid positive consumer morale.
The company’s Colombian operation, Ara, registered a 31.6% growth in sales, in terms of local currency, amounting to €356 million.
The retail chain bolstered its promotional dynamics to achieve this growth.
It opened 25 new stores during this period, taking the total store count to 557.
Outlook
Chairman and Chief executive ofJerónimo Martins, Pedro Soares dos Santos, said, “For the remainder of 2019 our goal is to continue to outperform the markets where we operate.
“To guarantee this outperformance, we will continue reinforcing our operations and working to have the best commercial proposals to earn, more and more, the consumer’s recognition and preference,” he added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
