Portuguese retail group Jerónimo Martins reported profits of €85 million in the first quarter of 2018, up 5.8% year-on-year, mainly supported by sales in Poland.
The group's sales totaled €4.2 billion, 14.2% above the same period last year (7% like for like ), thanks to a strong performance of all banners and a particularly successful Easter.
The positive results were achieved despite continued pressure on personnel costs, especially at Biedronka and Pingo Doce.
Banner Sales
Polish supermarket chain Biedronka saw a 15.6% increase in sales to €2.9 billion, achieved in a market with a strong consumer demand and competitive environment. During the quarter, 11 new stores were opened (2 net additions), taking the total to 2,825.
In Portugal, supermarket chain Pingo Doce saw a 7.1% increase in sales to €882 million, with like-for-like sales of 6.4%, further strengthening its market position. Cash and carry banner Recheio contributed with revenues of €210 million, up 4.2% (LFL 3.6%). There were no new store openings in the quarter for both banners.
However, the highest growth was achieved in Colombia (+54.4%), where the Ara supermarket chain delivered sales of €134 million, driven by the opening of 25 new stores since January, taking the total network to 414.
Group capex amounted to €141 million, of which 56% was invested in Biedronka and 14% in Ara.
2018 Goals
The goals for 2018, according to Jerónimo Martins, are to 'continue to strengthen the Portuguese market positions' of Pingo Doce and Recheio, expand operations in Colombia, and increase the share in Poland.
In regards to the Sunday trading ban in Poland, the retailer is confident that plans to adapt to the new rules in the sector will prove to be effective.
Jerónimo Martins confirmed an investment program of €700-750 million, including funds earmarked for the net addition of 70 to 80 Biedronka stores, the opening of around 150 Ara stores and the major refurbishment of both Biedronka and Pingo Doce.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
