Jeronimo Martins, Sgps S.a. · EURONEXT:JMT

Jeronimo Martins, Sgps — Jeronimo Martins Pe — Q1 2023 Earnings Presentation

37 slides from Jeronimo Martins, Sgps's earnings presentation, Apr 27, 2023

  1. Slide 1: Visit our stores - Market release, Factsheet

    VISIT OUR STORES > MARKET RELEASE > FACTSHEET 27 April, 2023

  2. Slide 2: Introductory Note

    FIRST QUARTER RESULTS INTRODUCTORY NOTE This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16 2

  3. Slide 3: Content

    FIRST QUARTER RESULTS CONTENT 1. Q1 2023 SNAPSHOT 5. Q1 2023 EBITDA PERFORMANCE 2. Q1 2023 THE CONTEXT 5.1. EBITDA 5.2. EBITDA Margin 3. Q1 2023 KEY FIGURES 3.1. Income Statement 6. Q1 2023 FINAL REMARKS 3.2. Cash Flow 3.3. Balance Sheet APPENDIX Financial Statements 4. Q1 2023 SALES PERFORMANCE Out

  4. Slide 4: Q1 2023 Snapshot

    FIRST QUARTER RESULTS 1. Q1 2023 SNAPSHOT Persistent high food inflation in the first €446 mn 6.6% three months of the year increasingly EBITDA EBITDA Mg pressured consumers (+20.1%) (-18 bps ) Strategy focused on price competitiveness maintained, driving strong sales growth +21.2% +85 LFL New Store

  5. Slide 5: Q1 2023 The Context

    FIRST QUARTER RESULTS 2. Q1 2023 THE CONTEXT Inflation remained high in the first three months of the year. Comparison with Q1 22 was softer as price hikes in 2022 accelerated mainly from Q2 onwards National minimum wages increased in January in the three countries, but consumer behaviour reflected

  6. Slide 6: Q1 2023 Key Figures: Income Statement

    FIRST QUARTER RESULTS 3. Q1 2023 KEY FIGURES 3.1. INCOME STATEMENT STRONG SALES (€ Million) Q1 23 Q1 22 ∆ PERFORMANCE Net Sales and Services 6,804 5,513 23.4% DRIVING RESULTS Gross Profit 1,414 20.8% 1,184 21.5% 19.4% Operating Costs -967 -14.2% -812 -14.7% 19.1% EBITDA 446 6.6% 372 6.7% 20.1% AS AN

  7. Slide 7: Q1 2023 Key Figures: Cash Flow

    FIRST QUARTER RESULTS 3. Q1 2023 KEY FIGURES 3.2. CASH FLOW CASH FLOW (€ Million) Q1 23 Q1 22 REFLECTS EBITDA 446 372 SEASONAL Capitalised Operating Leases Payment -81 -74 WORKING CAPITAL Interest Payment -38 -35 OUTFLOW Other Financial Items 0 0 Income Tax -49 -39 Funds From Operations 278 224 Cape

  8. Slide 8: Q1 2023 Key Figures: Balance Sheet

    FIRST QUARTER RESULTS 3. Q1 2023 KEY FIGURES 3.3. BALANCE SHEET STRONG BALANCE (€ Million) Q1 23 2022 Q1 22 SHEET Net Goodwill 613 613 614 Net Fixed Assets 4,681 4,589 4,155 Net Rights of Use (RoU) 2,589 2,420 2,259 AGM APPROVED THE Total Working Capital -3,545 -3,837 -2,975 Others 143 161 138 DISTR

  9. Slide 9: Q1 2023 Sales Performance: Group

    FIRST QUARTER RESULTS 4. Q1 2023 SALES PERFORMANCE 4.1. GROUP • Strong sales momentum maintained. Base for comparatives becomes more challenging from Q2 23 • High food inflation was a feature of the performance in all markets 9

  10. Slide 10: Q1 2023 Sales Performance: Biedronka

    FIRST QUARTER RESULTS 4. Q1 2023 SALES PERFORMANCE 4.2. BIEDRONKA • Reinforced price competitiveness delivered well in Q1 23 in a context of increasingly pressured consumer demand • Strong LFL also benefiting from an earlier Easter period in 2023 vs 2022 • Further gains in market share • 17 stores o

  11. Slide 11: Q1 2023 Sales Performance: Hebe

    FIRST QUARTER RESULTS 4. Q1 2023 SALES PERFORMANCE 4.3. HEBE • Good sales performance in the quarter • E-commerce represented c.17% of sales 11

  12. Slide 12: Q1 2023 Sales Performance: Pingo Doce

    FIRST QUARTER RESULTS 4. Q1 2023 SALES PERFORMANCE 4.4. PINGO DOCE • Strong price dynamics and promotional investment maintained • Trading down impacted growth • 2 stores opened and 7 renovations 12

  13. Slide 13: Q1 2023 Sales Performance: Recheio

    FIRST QUARTER RESULTS 4. Q1 2023 SALES PERFORMANCE 4.5. RECHEIO • Strong tourist activity continued to benefit HoReCa performance • Assertive commercial dynamic also fuelling sales 13

  14. Slide 14: Q1 2023 Sales Performance: Ara

    FIRST QUARTER RESULTS 4. Q1 2023 SALES PERFORMANCE 4.6. ARA • Focus on price competitiveness and promotional dynamics to protect sales in light of massive pressure over household income • Unchanged focus on expansion - 64 stores opened in Q1 23 14

  15. Slide 15: Q1 2023 EBITDA Performance: EBITDA

    FIRST QUARTER RESULTS 5. Q1 2023 EBITDA PERFORMANCE 5.1. EBITDA • Strong sales drove EBITDA delivery 15

  16. Slide 16: Q1 2023 EBITDA Performance: EBITDA Margin

    FIRST QUARTER RESULTS 5. Q1 2023 EBITDA PERFORMANCE 5.2. EBITDA MARGIN • Biedronka margin reflects price investment and cost inflation. The pressure was however partially mitigated by strong sales growth • Pingo Doce margin decline, due to price investment, was offset by Recheio recovering to pre-pa

  17. Slide 17: Q1 2023 Final Remarks

    FIRST QUARTER RESULTS 6. Q1 2023 FINAL REMARKS STRONG DELIVERY IN A All banners entered 2023 with strong sales momentum that continued throughout CHALLENGING CONTEXT Q1. Food inflation was a feature of the sales delivery WE REMAIN FOCUSED ON It is worth flagging that Q1 23 faced softer comparatives.

  18. Slide 18: Q&A

    FIRST QUARTER RESULTS Q&A Group CFO Ana Luísa Virgínia 18

  19. Slide 19: Appendix

    FIRST QUARTER RESULTS APPENDIX FINANCIAL STATEMENTS OUTLOOK 2023 19

  20. Slide 20: Financial Statements (1/9) Income Statement

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (1/9) INCOME STATEMENT (Excl. IFRS16) (€ Million) Q1 23 Q1 22 ∆ Net Sales and Services 6,804 5,513 23.4% Gross Profit 1,414 20.8% 1,184 21.5% 19.4% Operating Costs -1,086 -16.0% -919 -16.7% 18.2% EBITDA 327 4.8% 265 4.8% 23.4% Depreciation -120 -1.8% -110 -

  21. Slide 21: Financial Statements (2/9) Cash Flow

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (2/9) CASH FLOW (Excl. IFRS16) (€ Million) Q1 23 Q1 22 EBITDA 327 265 Interest Payment 1 -1 Other Financial Items 0 0 Income Tax -49 -39 Funds From Operations 279 225 Capex Payment -261 -201 Change in Working Capital -242 -208 Others -3 -11 Cash Flow -226 -

  22. Slide 22: Financial Statements (3/9) Balance Sheet

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (3/9) BALANCE SHEET (Excl. IFRS16) (€ Million) Q1 23 2022 Q1 22 Net Goodwill 613 613 614 Net Fixed Assets 4,681 4,589 4,155 Total Working Capital -3,540 -3,832 -2,971 Others 114 132 113 Invested Capital 1,868 1,501 1,911 Total Borrowings 477 470 450 Financi

  23. Slide 23: Financial Statements (4/9) EBITDA Breakdown

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (4/9) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) Q1 23 Mg Q1 22 Mg Q1 23 Mg Q1 22 Mg Biedronka 390 8.1% 318 8.3% 309 6.4% 246 6.4% Hebe 5 5.1% 4 5.2% -2 n.a. -2 n.a. Distribution Portugal 77 5.6% 68 5.6% 59 4.3% 50 4.1% Ara 14 2.9% 12 3.2% 3 0.5% 2 0.

  24. Slide 24: Financial Statements (5/9) Net Financial Costs

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (5/9) NET FINANCIAL COSTS IFRS16 Excl. IFRS16 (€ Million) Q1 23 Q1 22 Q1 23 Q1 22 Net Interest 1 -3 1 -3 Interests on Capitalised Operating Leases -38 -33 - - Exchange Differences -1 -8 -2 -4 Others -3 -1 -3 -1 Net Financial Costs -41 -45 -4 -9 24

  25. Slide 25: Financial Statements (6/9) Sales Breakdown

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (6/9) SALES BREAKDOWN Q1 23 Q1 22 ∆% (€ Million) % total % total excl. FX Euro Biedronka 4,841 71.1% 3,843 69.7% 28.3% 26.0% Hebe 93 1.4% 72 1.3% 31.9% 29.5% Pingo Doce 1,077 15.8% 985 17.9% 9.4% Recheio 295 4.3% 228 4.1% 29.2% Ara 494 7.3% 382 6.9% 50.8% 2

  26. Slide 26: Financial Statements (7/9) Sales Growth

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (7/9) SALES GROWTH Total Sales Growth LFL Growth Q1 23 Q1 23 Biedronka Euro 26.0% PLN 28.3% 24.5% Hebe Euro 29.5% PLN 31.9% 22.6% Pingo Doce 9.4% 8.0% Excl. Fuel 9.9% 8.4% Recheio 29.2% 27.1% Ara Euro 29.4% COP 50.8% 18.9% Total JM Euro 23.4% Excl. FX 26.5%

  27. Slide 27: Financial Statements (8/9) Store Network

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (8/9) STORE NETWORK Openings Closings Number of Stores 2022 Q1 23 Q1 22 Q1 23 Q1 23 Biedronka * 3,395 17 8 3,404 3,261 Hebe 315 2 2 315 292 Pingo Doce 472 2 0 474 466 Recheio 43 0 0 43 42 Ara 1,093 64 1 1,156 832 Closings Openings Sales Area (sqm) 2022 Remo

  28. Slide 28: Financial Statements (9/9) Capex

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (9/9) CAPEX (€ Million) Q1 23 Weight Q1 22 Weight Biedronka 72 35% 50 50% Distribution Portugal 44 22% 39 39% Ara 79 39% 7 7% Others 10 5% 4 4% Total CAPEX 206 100% 99 100% 28

  29. Slide 29: Outlook 2023 Our Strategic Vision

    FIRST QUARTER RESULTS OUTLOOK 2023 OUR STRATEGIC VISION (released by March 22, 2023) In challenging circumstances we continue to stand by consumers, investing to guarantee price competitiveness and to create valuable promotions Consumers’ preference should drive sales performance and operational lev

  30. Slide 30: Outlook 2023 Biedronka

    FIRST QUARTER RESULTS OUTLOOK 2023 BIEDRONKA (released by March 22, 2023) The more cautious consumer BIEDRONKA will keep the investment Seizing the opportunity for its model, behaviour, which has in price competitiveness at the centre Biedronka plans to add 130-150 net intensified since the last of

  31. Slide 31: Outlook 2023 Pingo Doce & Recheio

    FIRST QUARTER RESULTS OUTLOOK 2023 PINGO DOCE & RECHEIO (released by March 22, 2023) In Portugal, the challenges PINGO DOCE, will invest in PINGO DOCE will accelerate its raised by the fragility of promotional dynamics, maintaining a refurbishment programme to roll out consumption and trading down l

  32. Slide 32: Outlook 2023 Ara

    FIRST QUARTER RESULTS OUTLOOK 2023 ARA (released by March 22, 2023) In Colombia, we continue to see ARA will remain firm in its commitment to Expansion will also be a priority and declines in real disposable low prices in a context that is expected to the banner plans to add more than 200 incomes, w

  33. Slide 33: Outlook 2023 Corporate Responsibility (1/2)

    FIRST QUARTER RESULTS OUTLOOK 2023 CORPORATE RESPONSIBILITY (1/2) (released by March 22, 2023) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS Develop in all banners food solutions that are healthier and respond to specific nutritional needs (vegan, lactose-free and/or gluten- fr

  34. Slide 34: Outlook 2023 Corporate Responsibility (2/2)

    FIRST QUARTER RESULTS OUTLOOK 2023 CORPORATE RESPONSIBILITY (2/2) (released by March 22, 2023) CORPORATE RESPONSIBILITY – WE WILL ADVANCE IN OUR 2021-2023 TARGETS Strengthen the involvement in social projects in all geographies, targeted to children, youngsters and elderly people from vulnerable env

  35. Slide 35: Outlook 2023 Final Remarks

    FIRST QUARTER RESULTS OUTLOOK 2023 FINAL REMARKS (released by March 22, 2023) We ended 2022 with stronger market positions, enhanced value propositions (price, assortment and presence & quality of store networks) and a reinforced balance sheet 2023 context will be challenging Good quality offers, ef

  36. Slide 36: Disclaimer

    FIRST QUARTER RESULTS DISCLAIMER Statements in this presentation that are forward-looking are based on current expectations of future events and 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

  37. Slide 37: Jerónimo Martins

    Jeronimo Martins

Jeronimo Martins Pe — Q1 2023 Earnings Presentation on 6ix