Half Year 2025 Jeronimo Martins SGPS SA Earnings Call Transcript
Key Points
- Jeronimo Martins SGPS SA (JRONY) achieved a 6.7% sales growth in the first half of 2025, driven by strong performance across all banners.
- EBITDA increased by 10.3%, supported by sales growth and effective cost management, resulting in a 21 basis point improvement in EBITDA margin to 6.6%.
- The company maintained a strong financial position with a cash balance of EUR213 million after paying EUR371 million in dividends.
- Significant progress was made in the CapEx program, with 196 new stores opened and 71 locations remodeled, supporting long-term growth.
- Biedronka maintained its price leadership in Poland, contributing to a 7.1% sales growth and market share increase.
- The operating environment remains challenging with muted food consumption, low basket inflation, and rising wages impacting consumer spending.
- Cash flow for the period was an outflow of EUR157 million, reflecting the seasonality of the business and supplier payments post-Christmas.
- Hebe faced substantial deflation in the basket, pressuring EBITDA margins despite recent strategic adjustments.
- The company anticipates continued margin pressure from low basket inflation and rising personnel costs, particularly in the competitive Polish market.
- The outlook for the second half remains uncertain, with potential challenges in maintaining the same level of sales growth and margin improvement.
Good day, and thank you for standing by. Welcome to the Jeronimo Martins first-half 2025 results webcast and conference call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ana Luisa Virginia. Please go ahead.
Thank you, Nadia. Good morning, ladies and gentlemen, and thank you for joining this call dedicated to our first half results. As usual, in our corporate website, you can find the results release, a slide presentation and a fact sheet for the period.
As anticipated, in the first six months of 2025, we faced a challenging operating context that combines muted food consumption, low basket inflation and rising wages. Despite the increase in salaries across the countries where we operate, families have, in general, kept cautious spending habits and a clear preference for value opportunities, particularly in what food is concerned.
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