- J. Martins reported a 1Q net income of EU97 million, falling short of estimates and declining 31% year-on-year (y/y).
- Gross profit for the quarter was EU1.65 billion up 17% y/y, beating the estimate of EU1.59 billion.
- Earnings before interest, taxes, depreciation, and amortization (Ebitda) was EU508 million, a 14% increase y/y, surpassing the EU486.5 million estimate.
- Ebitda margin was 6.3% compared to 6.6% y/y, slightly above the estimated 6.22%.
- Net sales and services were EU8.07 billion, a 19% increase y/y, and higher than the EU7.9 billion estimate.
- Biedronka sales took the lead at EU5.8 billion, up 20% y/y against the estimated EU5.67 billion.
- Hebe sales had a massive increase of 40% y/y, reaching EU130 million and beating the estimate of EU120.5 million.
- Pingo Doce sales rose to EU1.2 billion, up 11% y/y, and surpassing the EU1.12 billion estimate.
- Recheio sales were modest, at EU303 million, slightly below the EU304.6 million estimate.
- Ara sales observed the highest y/y increase of 44%, reaching EU711 million and outpacing the EU660.6 million estimate.
- In the Poland unit, Biedronka LFL sales increased by 4.6%, outperforming the estimated increase of 4.1%.
- Jeronimo Martins reiterated their outlook announced on March 6.
- They noted that consumers in Poland remained “cautious” regarding prices and were greatly oriented towards promotions.
- The company also acknowledged that the Ebitda margin was affected by its investment in prices and cost inflation.
- As of the end of March 2024, the company reported a net cash position of EU1 billion on its balance sheet.
- The company outlined two unchanged priorities: to grow sales by investing in price and to expand the store network.
A look at Jeronimo Martins Sgps Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysing the long-term outlook for Jeronimo Martins Sgps Sa based on Smartkarma Smart Scores reveals a mixed perspective. With a Growth score of 4, the company is poised for expansion and development in its industry. This positive outlook is complemented by a Respectable Dividend score of 3, offering potential returns to investors. However, lower scores in Value and Momentum may indicate challenges in terms of stock performance and market positioning. A moderate Resilience score of 3 suggests a company that can withstand economic uncertainties.
Jeronimo Martins Sgps Sa, a holding company renowned for its food distribution operations in Portugal, Poland, and Colombia, maintains a diversified business model. Operating supermarkets and retail stores in multiple countries, the company also engages in food manufacturing and restaurant services. Despite favorable Growth and Dividend scores, investors should consider the company’s Value, Resilience, and Momentum scores when evaluating its long-term investment potential.
Summary: Jeronimo Martins, SGPS, S.A. is a holding company distributing food in Portugal, Poland, and Colombia through supermarkets, retail stores, and food manufacturing, catering to the restaurant industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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