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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.

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First Half 2020 Results

Sales grow 4.6% in the first half, driven by the performance in Poland

In the midst of a pandemic, Biedronka outperforms itself and achieves a solid growth in sales and EBITDA. The Companies in Portugal and Colombia were severely affected by the restrictive measures implemented in the respective markets. As such, consolidated sales amounted to 9.3 billion euros, up 4.6% compared to the previous year.
Penalised also by the increase in operating costs related to reinforcing the safety conditions for employees and customers, EBITDA stood at 635 million euros, a year-on-year decrease of 4.9%. During the first six months of the year, the Group invested 142 million euros in the three countries, with net result dropping 36.2% year-on-year to 104 million euros.

Sales
9.3 B€
Profit
104 M€
EBITDA
635 M€
Investment
142 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

The first six months of the year were marked by the disruption caused by the Covid-19 pandemic during the second quarter. Maintaining business continuity and supply chain stability in the midst of a crisis with no end at sight demanded from our teams extraordinary resilience, determination and commitment across the whole organization and in our stores and distribution centres in particular. A personal note of appreciation on our people’s response.

We set common priorities for all Group’s Companies while, at the same time, reinforcing local autonomy. This autonomy is important to respond effectively to the different containment policies and consumer behaviour in the countries where we operate. While focusing on the safety of teams and consumers, on protecting our supply chain and delivering quality products at low prices, each banner designed and implemented specific action plans.

In Poland, Biedronka responded to the challenges posed by the pandemic with remarkable decisiveness, combining agility, flexibility and resourcefulness. These qualities, together with well-targeted promotional campaigns, protected the company’s profitability and increased its market share.

In Portugal, the economy suffered under the large weight of the stagnant tourism sector and the restrictions imposed on the retail sector. These factors had an immediate impact on the profitability of our business models.

In Colombia, the impact of confinement measures and restrictions on economic activity is still being felt, making it difficult to forecast the ongoing effect of the pandemic on the economy. This pandemic has developed differently from region to region in the country leading the government to respond with a decentralized approach that increased the complexity to our operation.

I am aware that the coming months will continue to be tough. The solid performance of our main business, the robustness of the Group’s Balance Sheet and our teams’ capacity to adjust reinforce my confidence that we will be able to navigate these troubled waters successfully. We continue to be guided by the strategic priorities that we defined and to which we are committed

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First Quarter 2020 Results: Sales grow 11%

The positive performance seen in the first three months of the year reflects the strong growth of all banners.

Sales
4.7 B€
Profit
35 M€
EBITDA
309 M€
Investment
90 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

We ended the first quarter of the year with remarkable sales growth that reflects the competitive strength of the different businesses, as well as the flexibility and resilience of our operations, even when tested by an unprecedented threat – the COVID-19 pandemic.

The initial impact of the global health crisis on our companies was felt in the first half of March. The intensity of this impact depended on the evolution of the pandemic in the countries where we operate (Portugal, Poland and Colombia) and our teams responded swiftly, with extraordinary diligence and sense of commitment.

In all geographies, our teams showed flexibility and readiness to adopt, in a rapidly-changing environment, the measures necessary to guarantee that our stores could distribute a steady flow of essential goods and respond to social emergencies.

At the moment, it is hard to predict the scale and depth of the ultimate effects of the pandemic.

In this context of high uncertainty, we will keep supporting our working community and I am sure that our teams will continue, as until now, to show their sense of mission and service towards consumers, the communities where we operate, and our supply chain partners.

This crisis finds our Group in a strong financial position, after a year of very good results. However, given the ongoing global recession, prudence advises us to reinforce our conservative capital structure management and keep the flexibility to capture potential opportunities. Therefore, the Board of Directors decided to revise the dividend amount initially proposed, reducing exceptionally the payout to 30% of consolidated profits.

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Results Presentation 2019

2019 was a year of remarkable performance at all levels, confirmed by strong growth in sales and results of all banners, which made it possible to surpass, for the first time, the 1 billion euros EBITDA mark. Also noteworthy was the reduction in Ara’s EBITDA losses and the achievement of EBITDA breakeven by Hebe.

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First Nine Months 2019 Results

In the first nine months of the year, consolidated sales totalled 13.7 billion euros, which corresponds to a 6.7% year-on-year increase. The Group’s EBITDA saw the same growth and totalled 757 million euros. Net income totalled 302 million euros, up 3.5% year-on-year.

Sales
13.7 B€
Profit
302 M€
EBITDA
757 M€
Investment
405 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

These results highlight our banners’ remarkable ability to grow consistently faster than the markets in which they operate. Our consumer centric approach and the primacy given to sales, while preserving the efficiency of the business models, are the common drivers of our Companies’ performance. In Colombia, a more assertive strategy in terms of assortment and price produced stronger sales growth and provided further validation of the commercial potential of our store network. Our banners are well prepared for the last and most important quarter of the year. We feel confident that we will deliver another good year both in terms of growth and profitability.

Note: Performance analysis in this release is presented excluding IFRS16 impact

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First Half 2019 Results: Sales grow 5.7%

In the first six months of the year, all businesses recorded positive performance, reflected in sales and EBITDA growth.

Sales
8.9 B€
Profit
181 M€
EBITDA
471 M€
Investment
238 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

In line with our strategy, consumer focus and sales growth remain the Group’s top priorities, without compromising cost discipline and the emphasis on efficiency to ensure the competitiveness and profitability of our business models. These strategic options allowed us to deliver strong growth in the first half of the year in both sales and EBITDA.

I am pleased with the LFL sales performance of our brands in general and Ara in particular. 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 in order to earn, more and more, the consumer’s recognition and preference.

Note: Performance analysis in this release is presented excluding IFRS16 impact.

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Q1 2019: Positive Sales and Profitability Performance

In the first three months of the year, consolidated sales increased 1.1% to 4.2 billion euros  despite the absence of Easter in the period and the gradual Sunday trading ban in Poland, corresponding to seven less days of sales in the quarter. The Group’s sales increased 3.2% with neutral Like-for-Like (LfL), at constant exchange rates.

Sales
4.2 B€
Profit
72 M€
EBITDA
214 M€
Investment
95 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

“We had a strong start to the year and this first quarter results reflect that momentum.

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.

I am confident in our ability to overcome the challenges in sight and to continue to grow above the market for the remainder 2019.”


Compared with the same period of 2018, the first quarter reflected, as expected, a robust performance of all our banners and the vitality of their leadership positions.

In this context, the guidance provided in our February 27th release is kept unchanged.

Note: Performance analysis in this release is presented excluding IFRS16 impact.

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Results Presentation 2018

2018 was a great year for the Jerónimo Martins Group. We increased our sales, reinforced the investment in our banners and maintained our commitment to the sustainable growth of our businesses.

These are the main highlights of the year:

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First Nine Months 2018 Results

The sales performance achieved in the three countries helped grow key indicators, strengthening the market shares of all the Group’s banners and boosting the competitiveness of the business models.

Sales
12.8 B€
Profit
292 M€
EBITDA
709 M€
Investment
476 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

Our steady focus on sales growth and consumer preference across all banners produced a very good performance in the first nine months of the year.

In a not-yet-stabilized context of adapting to the Sunday ban, Biedronka continued to gain market share (+1.7p.p. ytd August) and to secure its operational profitability. This performance was achieved with 16 fewer trading days and lower food inflation.

In Portugal, Pingo Doce and Recheio delivered a remarkable performance driven by effective commercial actions.

In Colombia, Ara expanded both its store network and logistic infrastructure. The Company was able to contain its losses at the EBITDA level, and is making progress on key profitability drivers of pivotal relevance for the future.

Based on our performance so far, I am confident that all our models will deliver a solid Q4 in terms of both sales’ growth and profitability.

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First Half 2018 Results

In the first six months of the year, the Group’s key performance indicators recorded solid growth, with all banners increasing their market share.

Sales
8.4 B€
Profit
180 M€
EBITDA
446 M€
Investment
295 M€

Message from the Chairman and Chief Executive Officer

Pedro Soares dos Santos

Our teams delivered strong performances in competitive environments and we posted solid results in the first half of the year. This performance follows the consistent implementation of our strategy and the clear focus on our priorities.

Our banners remained focused on sales growth and committed to reinforcing their positions in the respective markets.

Biedronka added 2pp to its market share in the first half, demonstrating its agility and resilience in dealing with the initial impact of the Sunday trading ban as well as in setting the stage for continued growth. In Colombia, Ara keeps expanding and gaining market relevance.

Aware of the challenges ahead, we will continue to work to deliver sustainable profitable growth.