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

Jeronimo Martins, Sgps — Jeronimo Martins Pe — Q3 2023 Earnings Presentation

32 slides from Jeronimo Martins, Sgps's earnings presentation, Oct 26, 2023

  1. Slide 1: Visit Our Stores

    VISIT OUR STORES > MARKET RELEASE > FACTSHEET

  2. 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

  3. Slide 3: Content

    FIRST 9 MONTHS RESULTS CONTENT 1. 9M 2023 SNAPSHOT 5. 9M 2023 EBITDA PERFORMANCE 2. 9M 2023 THE CONTEXT 5.1. EBITDA 5.2. EBITDA Margin 3. 9M 2023 KEY FIGURES 6. 9M 2023 FINAL REMARKS 3.1. Income Statement 3.2. Cash Flow 3.3. Balance Sheet APPENDIX Financial Statements 4. 9M 2023 SALES PERFORMANCE Ou

  4. Slide 4: 1. 9M 2023 Snapshot

    FIRST 9 MONTHS RESULTS 1. 9M 2023 SNAPSHOT Unwavering strategic focus on price competitiveness continues to drive growth in top line and results €1.6 bn 7.1% EBITDA EBITDA Mg Strong sales delivery throughout the nine (+18.0%) (-24 bps ) months of the year driving solid increase of Group EBITDA +15.8

  5. Slide 5: 2. 9M 2023 The Context

    FIRST 9 MONTHS RESULTS 2. 9M 2023 THE CONTEXT Progressive reduction of food inflation in the three countries Poland: Consumers remain cautious, price oriented and promotions-driven. Negative volume progression in food retail market Portugal: Fragile consumer demand with households’ real income press

  6. Slide 6: 3.1 Income Statement

    FIRST 9 MONTHS RESULTS 3. 9M 2023 KEY FIGURES 3.1. INCOME STATEMENT RESULTS DRIVEN BY (€ Million) 9M 23 9M 22 ∆ Q3 23 Q3 22 ∆ STRONG SALES Net Sales and Services 22,451 18,392 22.1% 7,938 6,509 22.0% GROWTH Gross Profit 4,600 20.5% 3,887 21.1% 18.3% 1,630 20.5% 1,380 21.2% 18.1% Operating Costs -3,0

  7. Slide 7: 3.2 Cash Flow

    FIRST 9 MONTHS RESULTS 3. 9M 2023 KEY FIGURES 3.2. CASH FLOW SOLID CASH FLOW (€ Million) 9M 23 9M 22 DELIVERY EBITDA 1,591 1,348 Capitalised Operating Leases Payment -250 -221 Interest Payment -138 -114 Other Financial Items 0 0 Income Tax -205 -157 Funds From Operations 999 855 Capex Payment -834 -

  8. Slide 8: 3.3 Balance Sheet

    FIRST 9 MONTHS RESULTS 3. 9M 2023 KEY FIGURES 3.3. BALANCE SHEET STRONG (€ Million) 9M 23 2022 9M 22 BALANCE SHEET Net Goodwill 616 613 603 Net Fixed Assets 5,056 4,589 4,257 Net Rights of Use (RoU) 2,833 2,420 2,248 Total Working Capital -3,872 -3,837 -3,233 Others 240 161 183 Invested Capital 4,87

  9. Slide 9: 4.1 Group Sales Performance

    FIRST 9 MONTHS RESULTS 4. 9M 2023 SALES PERFORMANCE 4.1. GROUP • Strong sales delivery • Food inflation, although reducing, is still a feature of the performance • Group LFL in the 9M at 15.8% 9

  10. Slide 10: 4.2 Biedronka

    FIRST 9 MONTHS RESULTS 4. 9M 2023 SALES PERFORMANCE 4.2. BIEDRONKA • Strong value proposition and clear focus on price and promotions • Progressively widening the gap between its basket inflation and the country's food inflation • Positive volumes across the nine months, accelerated in Q3 • Market s

  11. Slide 11: 4.3 Hebe

    FIRST 9 MONTHS RESULTS 4. 9M 2023 SALES PERFORMANCE 4.3. HEBE • Strong value proposition delivering well supported by e-commerce growth 11

  12. Slide 12: 4.4 Pingo Doce

    FIRST 9 MONTHS RESULTS 4. 9M 2023 SALES PERFORMANCE 4.4. PINGO DOCE • Strong promotional dynamic maintained throughout the period • Delivering well on sales growth, protecting volumes and competitiveness • Enhancing differentiation through the remodeling programme • 8 stores opened (7 net additions)

  13. Slide 13: 4.5 Recheio

    FIRST 9 MONTHS RESULTS 4. 9M 2023 SALES PERFORMANCE 4.5. RECHEIO • Performance driven by strong value proposition tailored for each customer segment and a good HoReCa performance • LFL progressively facing more normal comparables 13

  14. Slide 14: 4.6 Ara

    FIRST 9 MONTHS RESULTS 4. 9M 2023 SALES PERFORMANCE 4.6. ARA • Food inflation reducing throughout the year • In an extremely difficult consumer context, Ara continues to invest strongly to defend its competitive positioning • 151 stores opened in 9M (148 net additions) 14

  15. Slide 15: 5.1 EBITDA

    FIRST 9 MONTHS RESULTS 5. 9M 2023 EBITDA PERFORMANCE 5.1. EBITDA • Reinforced price competitiveness, good quality assortments and enhanced shopping experience boosting a sales driven performance in all banners +16.1% +18.0% 15

  16. Slide 16: 5.2 EBITDA Margin

    FIRST 9 MONTHS RESULTS 5. 9M 2023 EBITDA PERFORMANCE 5.2. EBITDA MARGIN • Biedronka margin pressure reflects price investment and cost inflation particularly in labour • EBITDA margin for Hebe underpinned by strong sales growth despite the investment to grow in new markets • Margin in Portugal refle

  17. Slide 17: 6. 9M 2023 Final Remarks

    FIRST 9 MONTHS RESULTS 6. 9M 2023 FINAL REMARKS All Group companies entered 2023 with the same clear priorities – grow sales STRONG SALES in challenging markets while protecting profitability GROWTH PROTECTED PROFITABILITY The strategic focus on competitiveness, ensured our banners consumers’ prefer

  18. Slide 18: Q&A

    FIRST 9 MONTHS RESULTS Q&A Group CFO Ana Luísa Virgínia 18

  19. Slide 19: Appendix

    FIRST 9 MONTHS RESULTS APPENDIX FINANCIAL STATEMENTS OUTLOOK 2023 19

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (1/9) INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) 9M 23 9M 22 ∆ Q3 23 Q3 22 ∆ Net Sales and Services 22,451 18,392 22.1% 7,938 6,509 22.0% Gross Profit 4,600 20.5% 3,887 21.1% 18.3% 1,630 20.5% 1,380 21.2% 18.1% Operating Costs -3,388 -15.1%

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (2/9) CASH FLOW (Excl. IFRS16) (€ Million) 9M 23 9M 22 EBITDA 1,213 1,023 Interest Payment -9 -12 Other Financial Items 0 0 Income Tax -205 -157 Funds From Operations 999 854 Capex Payment -834 -626 Change in Working Capital 21 99 Others -27 -52 Cash Flow

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (3/9) BALANCE SHEET (Excl. IFRS16) (€ Million) 9M 23 2022 9M 22 Net Goodwill 616 613 603 Net Fixed Assets 5,056 4,589 4,257 Total Working Capital -3,867 -3,832 -3,229 Others 207 132 155 Invested Capital 2,012 1,501 1,786 Total Borrowings 697 470 470 Financ

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (4/9) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) 9M 23 Mg 9M 22 Mg 9M 23 Mg 9M 22 Mg Biedronka 1,353 8.6% 1,119 8.8% 1,095 6.9% 899 7.1% Hebe 27 8.2% 20 8.0% 6 1.7% 2 0.7% Distribution Portugal 268 5.9% 241 5.9% 213 4.7% 187 4.6% Ara 31 1.8% 42 3.3%

  24. Slide 24: Financial Statements (5/9) Financial Results

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (5/9) FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) 9M 23 9M 22 9M 23 9M 22 Net Interest -7 -11 -7 -11 Interests on Capitalised Operating Leases -128 -102 - - Exchange Differences 1 -17 -3 -1 Others -8 -5 -8 -5 Net Financial Costs -142 -135 -18 -16 24

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (6/9) SALES BREAKDOWN 9M 23 9M 22 ∆% Q3 23 Q3 22 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 15,810 70.4% 12,726 69.2% 21.7% 24.2% 5,494 69.2% 4,437 68.2% 17.4% 23.8% Hebe 329 1.5% 252 1.4% 27.8% 30.5% 121 1.5% 89 1

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (7/9) SALES GROWTH Total Sales Growth LFL Growth Q1 23 Q2 23 H1 23 Q3 23 9M 23 Q1 23 Q2 23 H1 23 Q3 23 9M 23 Biedronka Euro 26.0% 23.1% 24.5% 23.8% 24.2% PLN 28.3% 20.4% 24.0% 17.4% 21.7% 24.5% 17.0% 20.5% 12.8% 17.8% Hebe Euro 29.5% 26.7% 27.9% 35.0% 30.5

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (8/9) STORE NETWORK Openings Closings Number of Stores 2022 9M 23 9M 22 Q1 23 Q2 23 Q3 23 9M 23 Biedronka * 3,395 17 33 42 14 3,473 3,304 Hebe 315 2 10 5 4 328 300 Pingo Doce 472 2 4 2 1 479 469 Recheio 43 0 0 0 0 43 43 Ara 1,093 64 46 41 3 1,241 904 Closi

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

    FIRST 9 MONTHS RESULTS FINANCIAL STATEMENTS (9/9) CAPEX (€ Million) 9M 23 Weight 9M 22 Weight Biedronka 344 44% 292 51% Distribution Portugal 179 23% 151 26% Ara 190 24% 89 15% Others 77 10% 45 8% Total CAPEX 790 100% 577 100% 28

  29. Slide 29: Outlook 2023

    FIRST 9 MONTHS RESULTS OUTLOOK 2023 In a context in which consumer confidence is already very fragile and when interest rates are expected to remain high, the lack of visibility over the systemic effects of another war adds new layers of uncertainty In these demanding times, we are confident in the

  30. Slide 30: Outlook 2023 Capex Programme

    FIRST 9 MONTHS RESULTS OUTLOOK 2023 Capex programme Seizing the opportunity for its model, PINGO DOCE will accelerate its Expansion will also be a priority and BIEDRONKA plans to add 130-150 refurbishment programme to roll out ARA plans to add more than 200 net new locations to its store a store mod

  31. Slide 31: Disclaimer

    FIRST 9 MONTHS 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 an

  32. Slide 32: Jerónimo Martins

    Jerénimo Martins

Jeronimo Martins Pe — Q3 2023 Earnings Presentation on 6ix