Jeronimo Martins, Sgps S.a. · EURONEXT:JMT
Jeronimo Martins, Sgps — Jeronimo Martins Pe — Q3 2024 Earnings Presentation
39 slides from Jeronimo Martins, Sgps's earnings presentation, Oct 31, 2024
Slide 1: Market Release Factsheet, 31 October 2024
> MARKET RELEASE > FACTSHEET 31 October, 2024
Slide 2: Introductory Note
FIRST 9 MONTHS RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2
Slide 3: Content
CONTENT FIRST 9 MONTHS RESULTS 1. 9M 2024 SNAPSHOT 5. 9M 2024 EBITDA PERFORMANCE 5.1. EBITDA 2. 9M 2024 THE CONTEXT 5.2. EBITDA Margin 3. 9M 2024 KEY FIGURES 3.1. Income Statement 6. 9M 2024 FINAL REMARKS 3.2. Cash Flow 3.3. Balance Sheet 7. OUTLOOK 2024 4. 9M 2024 SALES PERFORMANCE 4.1. Group APPEN
Slide 4: 9M 2024 Snapshot
1. 9M 2024 SNAPSHOT FIRST 9 MONTHS RESULTS Persisting challenging contexts €1.6 bn 6.6% Price competitiveness and enhanced EBITDA EBITDA Mg value propositions drove our banners (+2.7%) (-49 bps) to win consumer preference, deliver consistent volume growth and improve market positions +0.3% +224 Resu
Slide 5: 9M 2024 The Context
2. 9M 2024 THE CONTEXT FIRST 9 MONTHS RESULTS Poland: Food inflation increased in April, due to the reintroduction of VAT on basic food products and has maintained an upward trajectory since then. Muted consumer demand and intense price competition in the food retail market Portugal: Promotions-orie
Slide 6: 9M Income Statement
3. 9M 2024 KEY FIGURES FIRST 9 MONTHS RESULTS 3.1. 9M INCOME STATEMENT VOLUME INCREASES AND (€ Million) 9M 24 9M 23 ∆ NETWORK EXPANSION Net Sales and Services 24,765 22,451 10.3% DRIVING GROWTH DESPITE Gross Profit 5,066 20.5% 4,600 20.5% 10.1% BASKET DEFLATION AT Operating Costs -3,433 -13.9% -3,01
Slide 7: Q3 Income Statement
3. 9M 2024 KEY FIGURES FIRST 9 MONTHS RESULTS 3.1. Q3 INCOME STATEMENT GROSS MARGIN (€ Million) Q3 24 Q3 23 ∆ SUPPORTED BY BETTER Net Sales and Services 8,467 7,938 6.7% MIX IN PORTUGAL AND IN Gross Profit 1,749 20.7% 1,630 20.5% 7.2% COLOMBIA Operating Costs -1,156 -13.6% -1,045 -13.2% 10.6% EBITDA
Slide 8: Cash Flow
3. 9M 2024 KEY FIGURES FIRST 9 MONTHS RESULTS 3.2. CASH FLOW CASH OUTFLOW (€ Million) 9M 24 9M 23 MAINLY IMPACTED BY EBITDA 1,633 1,591 THE EFFECTS OF Capitalised Operating Leases Payment -285 -250 TRANSITIONING Interest Payment -205 -138 FROM PEAKING FOOD INFLATION IN 2023 Other Financial Items 1 0
Slide 9: Balance Sheet
3. 9M 2024 KEY FIGURES FIRST 9 MONTHS RESULTS 3.3. BALANCE SHEET STRONG BALANCE SHEET (€ Million) 9M 24 2023 9M 23 MAINTAINED Net Goodwill 639 635 616 Net Fixed Assets 5,678 5,533 5,056 Net Rights of Use (RoU) 3,387 3,074 2,833 Total Working Capital -3,726 -4,314 -3,872 Others 331 235 240 Invested C
Slide 10: Sales Performance: Group
4. 9M 2024 SALES PERFORMANCE FIRST 9 MONTHS RESULTS 4.1. GROUP • Consistent volume growth in our main banners • Basket deflation at Biedronka reduced in Q3 but was still significant, impacting LFL • Group LFL in the 9M at 0.3% 10
Slide 11: Sales Performance: Biedronka
4. 9M 2024 SALES PERFORMANCE FIRST 9 MONTHS RESULTS 4.2. BIEDRONKA • Biedronka remained focused on the needs of Polish families, leading in price, continuing to outperform the market and gaining market share • Basket deflation was a feature of the performance across the nine months, although eased i
Slide 12: Sales Performance: Hebe
4. 9M 2024 SALES PERFORMANCE FIRST 9 MONTHS RESULTS 4.3. HEBE • Good sales delivery throughout the nine months • E-commerce proven to be a key growth channel for the banner, representing c.19% of sales 12
Slide 13: Sales Performance: Pingo Doce
4. 9M 2024 SALES PERFORMANCE FIRST 9 MONTHS RESULTS 4.4. PINGO DOCE • Strong sales delivery • LFL incorporated deflation in the basket throughout the period • Solid volume growth, supported by enhanced differentiation of the value proposition and strong commercial dynamic • 6 new stores (3 net addit
Slide 14: Sales Performance: Recheio
4. 9M 2024 SALES PERFORMANCE FIRST 9 MONTHS RESULTS 4.5. RECHEIO • Weakening trends in HoReCa channel required reinforced competitiveness to continue delivering • Recheio increased customers across all segments and continued to expand the Amanhecer partnerships that involve now 658 stores 14
Slide 15: Sales Performance: Ara
4. 9M 2024 SALES PERFORMANCE FIRST 9 MONTHS RESULTS 4.6. ARA • Commercial dynamic remains central to the strategy and allowed Ara to strengthen its pricing position and to provide strong price opportunities to the Colombian families • LFL reflects the negative consumer context • Softening basket inf
Slide 16: EBITDA
5. 9M 2024 EBITDA PERFORMANCE FIRST 9 MONTHS RESULTS 5.1. EBITDA • Consolidated EBITDA reflects the impact of food deflation coupled with high cost inflation. Price investment added to the pressure -2.9% +2.7% 16
Slide 17: EBITDA Margin
5. 9M 2024 EBITDA PERFORMANCE FIRST 9 MONTHS RESULTS 5.2. EBITDA MARGIN At Biedronka, the pressure from operating with basket deflation was heightened by soaring cost inflation and price investment Hebe’s margin benefited from good sales growth Margin in Portugal was pressured by dynamic commercial
Slide 18: 9M 2024 Final Remarks
6. 9M 2024 FINAL REMARKS FIRST 9 MONTHS RESULTS Challenging and competitive operating contexts across the different PERSISTENTLY geographies CHALLENGING OPERATING CONTEXTS The focus on maintaining price competitiveness and enhancing value UNCHANGED FOCUS ON propositions, drove our main banners to wi
Slide 19: Outlook 2024 (1/3)
7. OUTLOOK 2024 (1/3) FIRST 9 MONTHS RESULTS We will remain focused on growing volumes by guaranteeing consumer preference and market leading positions Our banners will keep working to increase efficiency on all fronts Our long-term vision remains unchanged. Our capex programme in 2024 is expected t
Slide 20: Outlook 2024 (2/3)
7. OUTLOOK 2024 (2/3) FIRST 9 MONTHS RESULTS In this final phase of the year, facing a more demanding comparative in terms of volumes, Biedronka will continue to invest in price, reinforcing its competitive position and creating additional saving and value opportunities for Polish consumers Since ou
Slide 21: Outlook 2024 (3/3)
7. OUTLOOK 2024 (3/3) FIRST 9 MONTHS RESULTS Pingo Doce will continue to implement its popular promotional campaigns and roll out its new store concept, emphasizing the brand's unique offerings in meal solutions and fresh products while introducing innovative services that customers value The Compan
Slide 22: Q&A
FIRST 9 MONTHS RESULTS Q&A Group CFO Ana Luísa Virgínia 22
Slide 23: Appendix
FIRST 9 MONTHS APPENDIX RESULTS FINANCIAL STATEMENTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS 23
Slide 24: Financial Statements (1/9): Income Statement
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (1/9) INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) 9M 24 9M 23 ∆ Q3 24 Q3 23 ∆ Net Sales and Services 24,765 22,451 10.3% 8,467 7,938 6.7% Gross Profit 5,066 20.5% 4,600 20.5% 10.1% 1,749 20.7% 1,630 20.5% 7.2% Operating Costs -3,885 -15.7% -
Slide 25: Financial Statements (2/9): Cash Flow
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (2/9) CASH FLOW (Excl. IFRS16) (€ Million) 9M 24 9M 23 EBITDA 1,182 1,213 Interest Payment -38 -9 Other Financial Items 1 0 Income Tax -242 -205 Funds From Operations 902 999 Capex Payment -760 -834 Change in Working Capital -473 21 Others -57 -27 Cash Flo
Slide 26: Financial Statements (3/9): Balance Sheet
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (3/9) BALANCE SHEET (Excl. IFRS16) (€ Million) 9M 24 2023 9M 23 Net Goodwill 639 635 616 Net Fixed Assets 5,678 5,533 5,056 Total Working Capital -3,721 -4,309 -3,867 Others 292 203 207 Invested Capital 2,888 2,061 2,012 Total Borrowings 847 765 697 Financ
Slide 27: Financial Statements (4/9): EBITDA Breakdown
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (4/9) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) 9M 24 Mg 9M 23 Mg 9M 24 Mg 9M 23 Mg Biedronka 1,343 7.7% 1,353 8.6% 1,035 5.9% 1,095 6.9% Hebe 35 8.3% 27 8.2% 10 2.4% 6 1.7% Distribution Portugal 269 5.7% 268 5.9% 208 4.4% 213 4.7% Ara 65 3.1% 31 1.
Slide 28: Financial Statements (5/9): Financial Results
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (5/9) FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) 9M 24 9M 23 9M 24 9M 23 Net Interest -31 -7 -31 -7 Interests on Capitalised Operating Leases -167 -128 - - Exchange Differences 12 1 7 -3 Others -9 -8 -9 -8 Net Financial Costs -195 -142 -33 -18 28
Slide 29: Financial Statements (6/9): Sales Breakdown
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (6/9) SALES BREAKDOWN 9M 24 9M 23 ∆% Q3 24 Q3 23 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 17,460 70.5% 15,810 70.4% 3.9% 10.4% 5,921 69.9% 5,494 69.2% 2.6% 7.8% Hebe 422 1.7% 329 1.5% 20.6% 28.3% 150 1.8% 121 1.5
Slide 30: Financial Statements (7/9): Sales Growth
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (7/9) SALES GROWTH Total Sales Growth LFL Growth Q1 24 Q2 24 H1 24 Q3 24 9M 24 Q1 24 Q2 24 H1 24 Q3 24 9M 24 Biedronka Euro 18.8% 5.7% 11.9% 7.8% 10.4% PLN 9.3% 0.1% 4.5% 2.6% 3.9% 4.6% -4.6% -0.2% -1.9% -0.7% Hebe Euro 39.2% 23.5% 30.6% 24.4% 28.3% PLN 28
Slide 31: Financial Statements (8/9): Store Network
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (8/9) STORE NETWORK Openings Closings Number of Stores 2023 9M 24 9M 23 Q1 24 Q2 24 Q3 24 9M 24 Biedronka * 3,569 28 32 44 14 3,659 3,473 Hebe ** 345 7 10 10 2 370 328 Pingo Doce 482 1 3 2 3 485 479 Recheio 43 0 0 0 0 43 43 Ara *** 1,290 27 32 28 0 1,377 1
Slide 32: Financial Statements (9/9): Capex
FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (9/9) CAPEX (€ Million) 9M 24 Weight 9M 23 Weight Biedronka 253 39% 344 44% Distribution Portugal 220 34% 179 23% Ara 107 16% 190 24% Others 68 11% 77 10% Total CAPEX 648 100% 790 100% 32
Slide 33: Corporate Responsibility 2024-2026 Commitments (1/5)
CORPORATE RESPONSIBILITY FIRST 9 MONTHS RESULTS 2024-2026 COMMITMENTS (1/5) PROMOTING GOOD HEALTH THROUGH FOOD In all countries reinforce the offer of food alternatives such as vegan, plant-based, low carbohydrates, fat and salt, low sugar content/sugar-free, lactose-free, gluten-free and/or for con
Slide 34: Corporate Responsibility 2024-2026 Commitments (2/5)
CORPORATE RESPONSIBILITY FIRST 9 MONTHS RESULTS 2024-2026 COMMITMENTS (2/5) RESPECTING THE ENVIRONMENT Reduce the Group's scopes 1 and 2 emissions, in absolute terms, by at least 10% by 2026, compared to 2021 Reduce carbon emissions resulting from transporting goods to stores by 5% (in tonnes of CO2
Slide 35: Corporate Responsibility 2024-2026 Commitments (3/5)
CORPORATE RESPONSIBILITY FIRST 9 MONTHS 2024-2026 COMMITMENTS (3/5) RESULTS SOURCING RESPONSIBLY Guarantee that at least 80% of the Jerónimo Martins Group’s purchases of food products are sourced from local suppliers Increase sales of Private Brand and/or perishable products and packaging with susta
Slide 36: Corporate Responsibility 2024-2026 Commitments (4/5)
CORPORATE RESPONSIBILITY FIRST 9 MONTHS 2024-2026 COMMITMENTS (4/5) RESULTS BEING A BENCHMARK EMPLOYER Promote respect for human and labour rights, namely, by implementing an internal global policy and process of prevention and compliance Strengthen the promotion of gender equality across the Group,
Slide 37: Corporate Responsibility 2024-2026 Commitments (5/5)
CORPORATE RESPONSIBILITY FIRST 9 MONTHS RESULTS 2024-2026 COMMITMENTS (5/5) SUPPORTING SURROUNDING COMMUNITIES Monitoring and disclosure of at least 70% (in value) of the social impacts resulting from the annual support offered by all Jerónimo Martins companies, according to the Business for Societa
Slide 38: Disclaimer
FIRST 9 MONTHS RESULTS DISCLAIMER This release's forward-looking statements are based on current expectations of future events. They are subject to risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainti
Slide 39: Jerónimo Martins
Jerénimo Martins