Portugal's retailer Jeronimo Martins disappoints with Q3 figures
Jeronimo Martins saw its third-quarter net profit drop by a surprise 3.8% to €115m, a result it blam…Jeronimo Martins saw its third-quarter net profit drop by a surprise 3.8% to €115m, a result it blamed on a tough trading environment in the key market of Poland. The group however noted that EBITDA grew by 3% to €224m, and sales were up 10% to €3.06bn.
In Poland, the group noted: “Since the end of the second quarter the food retail market has become much more competitive with a high level of promotions throughout the quarter”. However, it added that its market share in the country continued to grow, and said sales were up 12.5% to €1.95bn (+15.5% in local currency terms), with a like-for-like rise of 4%.
In Portugal, its Pingo Doce supermarket banner recorded a 4.1% rise to €837m (+4% LFL), while its Recheio banner saw growth of 3.6% to 234m (+2.1% LFL). The group said conditions remained tough in the austerity-hit market, but added that it was seeing some signs of stabilisation.
Jeronimo Martins said that for the full year, it expects to “once more deliver sales growth ahead of the market and increase earnings”.