Jerónimo Martins (JMT) H2 2024 earnings summary

Executive summary

• Sales grew 9.3% to €33.5 billion, with 4.9% growth at constant FX, driven by volume and store expansion despite basket deflation and rising labor costs; net profit was €599 million, representing 1.8% of sales.

• EBITDA increased 2.9% to €2.2 billion, margin declined to 6.7% from 7.1% year-over-year.

• Biedronka accounted for over 70% of group sales, expanded into Slovakia, and contributed to market share gains despite intense competition.

• Major investments of €1 billion, creation of 5,528 jobs, and €1,058 million paid in taxes.

• Sustainability progress included SBTI-approved carbon targets, CDP climate leadership, FTSE Diversity & Inclusion Index inclusion, and €40 million endowment to the Jerónimo Martins Foundation.

Financial highlights

• Net sales reached €33.5 billion (+9.3% year-over-year); EBITDA: €2.2 billion (+2.9%); EBIT: €1.19 billion (-6.1%).

• Net profit attributable to shareholders: €599 million (-20.8% year-over-year); EPS: €0.95.

• Net cash position (ex-IFRS 16): €726 million; net debt (incl. IFRS 16): €3.1 billion.

• Pre-tax ROIC at 20%, down from prior years.

• Capex of €1 billion, with 40% allocated to expansion; 385 new stores opened and 350 remodeled.

Outlook and guidance

• 2025 expected to remain challenging and volatile due to cautious consumers, intense competition, and geopolitical/economic uncertainty.

• Planned €1.1 billion CapEx for 2025, focusing on expansion and efficiency across banners.

• Biedronka to open 130–150 new stores and remodel 250–275 in Poland; Slovakia expansion to at least 50 stores by 2026.

• Ara to open 150+ new stores and integrate 70 Colsubsidio locations in Colombia.

• Dividend policy maintained; flexibility for further expansion and non-organic growth.