Jerónimo Martins (JMT) Q3 2024 earnings summary

Executive summary

• Sales grew 10.3% year-over-year to €24.8 billion, driven by volume increases and network expansion across all banners despite basket deflation and cost inflation pressures.

• EBITDA increased 2.7% to €1,633 million, but margin declined by 49 bps to 6.6% due to cost inflation and price investments.

• Net profit attributable to shareholders fell 21.2% to €440–445 million, with EPS at €0.70; net earnings per share excluding non-recurrent items dropped 13.8%.

• Net cash position (excluding IFRS 16) stood at €413–430 million at September-end, despite negative cash flow of €387 million due to working capital outflows and calendar effects.

Financial highlights

• Net sales and services grew 10.3% year-over-year to €24,765 million for the first nine months of 2024.

• EBITDA rose 2.7% to €1,633 million, while EBIT declined 8.2% to €855 million.

• Net profit margin dropped to 1.8% from 2.5% year-over-year.

• Cash flow was negative at €-387 million, mainly due to working capital outflows and capex payments.

• All banners contributed to an additional €1 billion in sales, excluding currency effects.

Outlook and guidance

• CapEx for 2024 revised down to just over €1 billion from €1.2 billion, mainly due to timetable adjustments in remodeling projects.

• Store expansion programs will proceed as planned, with Biedronka targeting 130–150 net new stores and Ara aiming for 150 new stores in 2024.

• Working capital expected to show a positive inflow in Q4 due to seasonality.

• Profitability remains under pressure from basket deflation and cost inflation, especially in main banners.