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First Nine Months 2020 Results

Sales increase 3.9% in the first nine months

Performance in the first nine months of the year reflects the impact of more than six months of operations during a pandemic, with all the resulting consequences. Consolidated sales totalled 14.2 billion euros, up 3.9% compared to the previous year. EBITDA amounted to 1,029 million euros, 1.9% less than that recorded in the same period in 2019.

Between March and September, the additional costs incurred in light of the health crisis exceeded 32 million euros. This amount includes extraordinary bonus to the operational teams, expenses with individual and collective protective equipment and the finance of multiple initiatives of social support in the three countries. Direct community aid and contributions to scientific efforts to stop the pandemic and deal with its effects are also reflected in this amount.
In the period under review, the Group invested 258 million euros, nearly half of which was allocated to Biedronka. Net income amounted to 219 million euros (EPS of 0.35 euros per share).

Sales
14.2 B€
Profit
219 M€
EBITDA
1,029 M€
Investment
258 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

Six of the first nine months of 2020 were marked by the effects of the COVID-19 pandemic. During this period, the determination of our teams and the flexibility of our operations allowed us to be agile and creative. We adapted the value proposals of our banners to complex market conditions, reinforcing their assertiveness and relevance to the consumer.

The strength of our balance sheet has allowed us not to lose sight of the long-term perspective and to remain unwavering in our commitment to our strategic priorities. Despite the tough times we live in, I believe that today we are better prepared than six months ago to deal with the demands of the reality of each market and to continue to grow in a sustainable way.

I am aware that uncertainty remains very high. The Christmas season, traditionally so important for food retail, may be impacted by restrictions on mobility and lack of confidence of a more price-sensitive consumer, due to the unique moment that is experienced worldwide.

In the early days of the pandemic, in response to the uncertainty about the impact of the health crisis, the payout ratio of the 2019 results was exceptionally reduced to 30% from the 50% initially announced. At this stage, our Companies have proven their resilience and determination. As such, and taking into consideration the strength of the Group's performance in these adverse times, our current cash position and the level of financial flexibility necessary for the future, the Board of Directors will propose to the Company’s shareholders the payment of remaining amount to the 50% payout, in line with JM’s dividend policy.