- Jerónimo Martins reported a net income of €156 million for Q2 2024, which is a 28% year-over-year decrease and fell short of the €166.9 million estimate.
- Gross profit for the quarter was €1.67 billion, a 7.1% year-over-year increase, meeting the expected value.
- EBITDA came in at €532 million, a 4.8% year-over-year drop, missing the €553.2 million estimate.
- Net sales & services reached €8.23 billion, a 6.8% year-over-year rise, but missed the €8.42 billion estimate.
- The company warned that pressure on the EBITDA margin might be higher in the second half of the year.
- Jerónimo Martins’ EBITDA margin for the first half of 2024 was 6.4%, compared to 6.9% in the first half of 2023.
- The company is experiencing significant pressure on its margins due to a rapid decrease in food prices and a significant increase in costs.
- Despite these challenges, Jerónimo Martins plans to stay focused on sales performance and reinforce cost discipline.
- The Polish food retail sector is losing volumes even with a substantial increase in the minimum wage.
- Biedronka, one of the company’s main banners, aims to maintain its price leadership and prioritize sales growth in volume.
- The strategy to counter basket deflation may continue to pressure the EBITDA margin, especially in the second half of the year.
- Jerónimo Martins reaffirms its 2024 capital expenditure program, which will be in line with that of 2023, totaling approximately €1.2 billion.
- The company currently has 18 buy ratings, 7 hold ratings, and 1 sell rating from analysts.
A look at Jeronimo Martins Sgps Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on the Smartkarma Smart Scores, Jeronimo Martins Sgps Sa is positioned for a positive long-term outlook. With a strong score in Growth and Momentum, the company shows promise for future expansion and market performance. Additionally, its respectable scores in Dividend and Resilience indicate a level of stability and potential for steady returns for investors. However, there is some room for improvement in the Value score, which suggests the company may be slightly overvalued at present.
Jeronimo Martins, SGPS, S.A., a holding company known for its food distribution operations in Portugal, Poland, and Colombia, continues to demonstrate resilience and growth potential. With a foothold in supermarket and retail sectors across multiple countries, the company maintains a diverse business portfolio. By focusing on enhancing its value proposition, Jeronimo Martins Sgps Sa can further solidify its position in the market and attract more investors seeking long-term growth opportunities.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
