Jerónimo Martins (JMT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales rose 3.8% year-over-year to €8.4bn, with EBITDA up 3.8% to €528mn and net profit attributable to shareholders up 31.4% to €127mn, despite margin pressure from higher labor costs and low basket inflation.

• Group EBITDA margin held steady at 6.3%, with net cash position (excluding capitalized leases) at €332mn at quarter-end.

• 71 new stores opened, including Biedronka's entry into Slovakia and Ara's expansion, with a strategic focus on price competitiveness and market share growth.

• Cash flow was negative at €398mn, reflecting business seasonality and Easter timing.

• Consumers remained cautious and highly promotion-driven, with management expecting continued volatility and cost pressure.

Financial highlights

• Group sales rose 3.8% year-over-year, or 1.9% at constant exchange rates, reaching €8.4bn; gross profit margin improved to 20.8%.

• EBITDA increased 3.8% to €528mn; EBIT rose 3.0% to €249mn; net profit attributable to shareholders up 31.4% to €127mn.

• Like-for-like sales were -2.2%, impacted by calendar effects and tough comparables, especially at Biedronka.

• Capex reached €267mn, mainly allocated to Biedronka and Ara.

• Dividend of €0.59/share (€370.8mn total) approved, to be paid 15 May; €40mn allocated to the company foundation.

Outlook and guidance

• 2025 outlook reiterated: focus on price competitiveness, sustainable growth, and expansion amid high cost pressure and unpredictable consumer trends.

• Management expects continued volatility, with margin and sales performance dependent on consumer behavior and competitive dynamics.

• Capex program remains a top priority, with €1.1bn planned for 2025.

• Biedronka to open 130–150 net new stores and renovate 250–275; expansion in Slovakia underway.

• Ara plans over 150 new stores and integration of ~70 Colsubsidio stores; logistics investment ongoing.