Half Year 2024 Jeronimo Martins SGPS SA Earnings Call Transcript
Key Points
- Total sales grew by 12.3%, with a 5.5% increase at constant exchange rates.
- Group like-for-like sales were up by 1.1%, driven by strong volume growth.
- All banners increased their client base and gained market share.
- Net cash position stood at EUR394 million after paying EUR411.6 million in dividends.
- Consolidated EBITDA grew by 3.5% in euros, reaching EUR1 billion.
- EBITDA margin fell to 6.4% from 6.9% in H1 2023 due to basket deflation and high cost inflation.
- Net earnings per share, excluding non-recurrent items, fell by 17.6%.
- Cash flow generated in the period was negative EUR383 million.
- Significant cost inflation, mainly driven by rising salaries and fierce competition, impacted profitability.
- Operational deleverage due to lower sales growth and higher costs, particularly in Poland.
Good morning, ladies and gentlemen, and thank you for joining this call to present our first half results. As a reminder, in our corporate website, you can find the results release a slide presentation and fact sheet for the period.
In line with our expectations, the operate operating circumstances in 2024 so far have been extremely challenging with a sharp drop of food inflation after the exceptionally high values registered in the last two years. Significant cost inflation, mainly driven by rising salaries and fierce competition.
Also in our main markets, Poland, consumer behavior has been unresponsive to the real wage increases, which is somewhat surprising considering the current macroeconomic environment. In these challenging conditions, our banners continued to strengthen their competitiveness, investing strongly in price to push for sales without neglecting the overall quality of their offer to consumers.
As a result and despite the headwind from
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