Nine Months 2024 Jeronimo Martins SGPS SA Earnings Call Transcript
Key Points
- Jeronimo Martins SGPS SA (JRONY) achieved a 10.3% sales growth, 4.7% at constant exchange rates, reaching EUR24.8 billion.
- The company maintained a solid balance sheet with a net cash position of EUR430 million by the end of September.
- Biedronka and Pingo Doce continued to grow volumes and gain market share despite operating with basket deflation.
- Ara improved its EBITDA margin by 127 basis points in the first 9 months, showing effective cost management.
- HeBe's sales grew by 20.6% in local currency, driven by strong e-commerce performance and a like-for-like growth of 11%.
- EBITDA margin was pressured by operational deleverage from basket deflation and significant cost inflation.
- Net earnings per share, excluding non-recurrent items, fell by 13.8%.
- Cash flow was negative EUR387 million, impacted by the transition from high food inflation to deflation.
- The company faced significant wage increases, particularly in Poland, impacting operational costs.
- The HoReCa channel in Portugal showed a slowdown trend, affecting Recheio's sales performance.
Good morning, ladies and gentlemen, and thank you for joining this call to present our 9 months results. In our corporate website, you can find the results release, a slide presentation and fact sheet for the period.
2024 has been so far, extremely challenging. As expected, the combination of a rapid decrease in food inflation and significant cost increases, together with weak consumer demands are driving more intense competition and pressuring margins. Despite this demand in context, we have delivered on our key strategic targets to grow sales and strengthen market positions.
Our banners maintain their price competitiveness and continue to improve value propositions, ensuring consumer preference, consistently growing volumes and gaining market share. Notwithstanding the strong volume performance, EBITDA margin for the first 9 months was impacted by the operational deleverage generated from basket deflation and significant cost inflation. Still, the balance sheet
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