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

Jeronimo Martins, Sgps — Jeronimo Martins Pe — H1 2023 Earnings Presentation

42 slides from Jeronimo Martins, Sgps's earnings presentation, Jul 27, 2023

  1. Slide 1: First Half Results

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

  2. Slide 2: Introductory Note

    FIRST HALF 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 HALF RESULTS CONTENT 1. H1 2023 SNAPSHOT 5. H1 2023 EBITDA PERFORMANCE 5.1. EBITDA 2. H1 2023 THE CONTEXT 5.2. EBITDA Margin 3. H1 2023 KEY FIGURES 6. H1 2023 FINAL REMARKS 3.1. Income Statement 3.2. Cash Flow APPENDIX 3.3. Balance Sheet Financial Statements 3.4. Capex Outlook 2023 4. H1 2023

  4. Slide 4: H1 2023 Snapshot (1/2)

    FIRST HALF RESULTS 1. H1 2023 SNAPSHOT (1/2) Strong sales delivery maintained throughout the six months period €1.0 bn 6.9% Consumer demand remained pressured EBITDA EBITDA Mg despite emerging food disinflation in Q2 (+18.1%) (-24 bps ) Consistent implementation of our strategy on price competitiven

  5. Slide 5: H1 2023 Snapshot (2/2)

    FIRST HALF RESULTS 1. H1 2023 SNAPSHOT (2/2) PROGRESSING ON CORPORATE RESPONSIBILITY FRONTS Payment of 120 million euros (+30% vs H1 22) in performance and extraordinary awards attributed to our operations’ teams, recognising their hard work and strong contribution to our previous year strong perfor

  6. Slide 6: H1 2023 The Context

    FIRST HALF RESULTS 2. H1 2023 THE CONTEXT Food inflation remained high at the start of the year and fell gradually in Q2 in the three countries Pressure on household disposable income persisted and was particularly strong in Colombia Poland: Cautious consumer behaviour and strong price sensitivity P

  7. Slide 7: H1 Income Statement

    FIRST HALF RESULTS 3. H1 2023 KEY FIGURES 3.1. H1 INCOME STATEMENT STRONG SALES LIMITED (€ Million) H1 23 H1 22 ∆ THE IMPACT OF COST Net Sales and Services 14,513 11,883 22.1% INFLATION ON THE P&L Gross Profit 2,970 20.5% 2,507 21.1% 18.5% Operating Costs -1,965 -13.5% -1,656 -13.9% 18.7% EBITDA 1,0

  8. Slide 8: Q2 Income Statement

    FIRST HALF RESULTS 3. H1 2023 KEY FIGURES 3.1. Q2 INCOME STATEMENT STRATEGY (€ Million) Q2 23 Q2 22 ∆ CONSISTENTLY Net Sales and Services 7,709 6,370 21.0% IMPLEMENTED Gross Profit 1,556 20.2% 1,323 20.8% 17.7% THROUGHOUT THE Operating Costs -998 -12.9% -843 -13.2% 18.3% PERIOD EBITDA 559 7.2% 479 7

  9. Slide 9: Cash Flow

    FIRST HALF RESULTS 3. H1 2023 KEY FIGURES 3.2. CASH FLOW CASH FLOW (€ Million) H1 23 H1 22 REFLECTS HIGHER EBITDA 1,005 851 CAPEX PAYMENT Capitalised Operating Leases Payment -165 -148 AND EFFECTS Interest Payment -87 -77 OVER THE Other Financial Items 0 0 WORKING CAPITAL Income Tax -123 -106 Funds

  10. Slide 10: Balance Sheet

    FIRST HALF RESULTS 3. H1 2023 KEY FIGURES 3.3. BALANCE SHEET (€ Million) H1 23 2022 H1 22 STRONG Net Goodwill 628 613 612 BALANCE SHEET Net Fixed Assets 4,994 4,589 4,207 Net Rights of Use (RoU) 2,868 2,420 2,280 Total Working Capital -3,708 -3,837 -3,175 Others 173 161 185 DIVIDEND OF Invested Capi

  11. Slide 11: Capex: Committed to Expansion and Remodelling

    FIRST HALF RESULTS 3. H1 2023 KEY FIGURES 3.4. CAPEX | COMMITTED TO DELIVER ON EXPANSION AND REMODELLING CAPEX OF €459 MN IN H1 23 OUTLOOK 2023FY • New Stores • New Stores 50 Biedronka (37 net) 130-150 Biedronka (net) 12 Hebe (8 net) c.30 Hebe 6 Pingo Doce (5 net) c.10 Pingo Doce 110 Ara (108 net) M

  12. Slide 12: Sales Performance: Group

    FIRST HALF RESULTS 4. H1 2023 SALES PERFORMANCE 4.1. GROUP • Strong sales performance across all businesses • Volume growth contributing to the LFL. Inflation is still a feature of performance • Disinflationary context in Q2 • Group LFL in H1 at 18.0% Contribution to Sales Growth (Mn €) LFL Sales Gr

  13. Slide 13: Sales Performance: Biedronka

    FIRST HALF RESULTS 4. H1 2023 SALES PERFORMANCE 4.2. BIEDRONKA • Strong price investment remained central to the strategy • The banner increased the gap between its basket inflation and the country food inflation • Solid volume delivery throughout the period • Market share gains driven by LFL and ex

  14. Slide 14: Sales Performance: Hebe

    FIRST HALF RESULTS 4. H1 2023 SALES PERFORMANCE 4.3. HEBE • Good sales performance maintained across the period • E-commerce represented c.17% of sales LFL Sales Growth Sales (Mn €) +27.5% +27.9% 14

  15. Slide 15: Sales Performance: Pingo Doce

    FIRST HALF RESULTS 4. H1 2023 SALES PERFORMANCE 4.4. PINGO DOCE • Persisting pressure on household disposable income drove trading-down in food • Strong commercial dynamics maintained • Remodellings enhancing value proposition • Volumes protected LFL Sales Growth (excl. fuel) Sales (Mn €) +8.6% 15

  16. Slide 16: Sales Performance: Recheio

    FIRST HALF RESULTS 4. H1 2023 SALES PERFORMANCE 4.5. RECHEIO • Competitive model in place benefiting from strong HoReCa performance • From Q2, the banner faced more normal comparables LFL Sales Growth Sales (Mn €) +23.2% 16

  17. Slide 17: Sales Performance: Ara

    FIRST HALF RESULTS 4. H1 2023 SALES PERFORMANCE 4.6. ARA • Consistent investment in price leadership drove solid sales in a market under pressure • Bold and disruptive promotional campaign initiated in May boosted visitors and volume growth in Q2 • Reinforced price perception and price positioning •

  18. Slide 18: EBITDA Performance: EBITDA

    FIRST HALF RESULTS 5. H1 2023 EBITDA PERFORMANCE 5.1. EBITDA • Strong value propositions in place coupled with consistent price-focused strategies drove EBITDA delivery Contribution to EBITDA Growth (Mn €) +18.0% +18.1% 18

  19. Slide 19: EBITDA Margin

    FIRST HALF RESULTS 5. H1 2023 EBITDA PERFORMANCE 5.2. EBITDA MARGIN • Biedronka margin pressured due to price investment and cost inflation, particularly in labour • Margin for Hebe benefitted from strong sales growth • Pingo Doce margin declined slightly with sales performance diluting the impact o

  20. Slide 20: H1 2023 Final Remarks

    FIRST HALF RESULTS 6. H1 2023 FINAL REMARKS All banners entered 2023 with strong sales momentum. This momentum STRONG DELIVERY ACROSS THE has been maintained throughout the first six months PERIOD IN A CHALLENGING CONTEXT Reduction in inflation in the three markets where we operate should continue a

  21. Slide 21: Q&A

    FIRST HALF RESULTS Q&A Group CFO Ana Luísa Virgínia 21

  22. Slide 22: Appendix

    FIRST HALF RESULTS APPENDIX FINANCIAL STATEMENTS OUTLOOK 2023 22

  23. Slide 23: Financial Statements (1/11): Income Statement

    FIRST HALF RESULTS FINANCIAL STATEMENTS (1/11) INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) H1 23 H1 22 ∆ Q2 23 Q2 22 ∆ Net Sales and Services 14,513 11,883 22.1% 7,709 6,370 21.0% Gross Profit 2,970 20.5% 2,507 21.1% 18.5% 1,556 20.2% 1,323 20.8% 17.7% Operating Costs -2,212 -15.2% -1

  24. Slide 24: Financial Statements (2/11): Cash Flow

    FIRST HALF RESULTS FINANCIAL STATEMENTS (2/11) CASH FLOW (Excl. IFRS16) (€ Million) H1 23 H1 22 EBITDA 758 635 Interest Payment -5 -10 Other Financial Items 0 0 Income Tax -123 -106 Funds From Operations 630 520 Capex Payment -495 -405 Change in Working Capital -244 5 Others -18 -23 Cash Flow -127 9

  25. Slide 25: Financial Statements (3/11): Balance Sheet

    FIRST HALF RESULTS FINANCIAL STATEMENTS (3/11) BALANCE SHEET (€ Million) H1 23 (Excl. IFRS16) 2022 H1 22 Net Goodwill 628 613 612 Net Fixed Assets 4,994 4,589 4,207 Total Working Capital -3,703 -3,832 -3,170 Others 144 132 158 Invested Capital 2,062 1,501 1,807 Total Borrowings 612 470 470 Financial

  26. Slide 26: Financial Statements (4/11): EBITDA Breakdown

    FIRST HALF RESULTS FINANCIAL STATEMENTS (4/11) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) H1 23 Mg H1 22 Mg H1 23 Mg H1 22 Mg Biedronka 872 8.5% 721 8.7% 703 6.8% 574 6.9% Hebe 14 6.8% 10 6.3% 0 0.1% -2 n.a. Pingo Doce 129 5.7% 120 5.8% 95 4.2% 87 4.2% Recheio 32 5.1% 24 4.6% 29 4.6% 21 4.1% A

  27. Slide 27: Financial Statements (5/11): Financial Results

    FIRST HALF RESULTS FINANCIAL STATEMENTS (5/11) FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) H1 23 H1 22 H1 23 H1 22 Net Interest -2 -7 -2 -7 Interests on Capitalised Operating Leases -82 -67 - - Exchange Differences 11 -7 -6 -1 Others -5 -3 -5 -3 Net Financial Costs -78 -85 -14 -12 27

  28. Slide 28: Financial Statements (6/11): Sales Breakdown

    FIRST HALF RESULTS FINANCIAL STATEMENTS (6/11) SALES BREAKDOWN H1 23 H1 22 ∆% Q2 23 Q2 22 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 10,316 71.1% 8,289 69.8% 24.0% 24.5% 5,475 71.0% 4,446 69.8% 20.4% 23.1% Hebe 208 1.4% 163 1.4% 27.5% 27.9% 115 1.5% 91 1.4%

  29. Slide 29: Financial Statements (7/11): Sales Growth

    FIRST HALF RESULTS FINANCIAL STATEMENTS (7/11) SALES GROWTH Total Sales Growth LFL Growth Q1 23 Q2 23 H1 23 Q1 23 Q2 23 H1 23 Biedronka Euro 26.0% 23.1% 24.5% PLN 28.3% 20.4% 24.0% 24.5% 17.0% 20.5% Hebe Euro 29.5% 26.7% 27.9% PLN 31.9% 24.0% 27.5% 22.6% 14.2% 17.9% Pingo Doce 9.4% 7.8% 8.6% 8.0% 7.

  30. Slide 30: Financial Statements (8/11): Store Network

    FIRST HALF RESULTS FINANCIAL STATEMENTS (8/11) STORE NETWORK Number of Stores 2022 Openings Closings H1 23 H1 22 Q1 23 Q2 23 H1 23 Biedronka * 3,395 17 33 13 3,432 3,283 Hebe 315 2 10 4 323 296 Pingo Doce 472 2 4 1 477 467 Recheio 43 0 0 0 43 42 Ara 1,093 64 46 2 1,201 875 Closings Openings Sales Ar

  31. Slide 31: Financial Statements (9/11): Capex

    FIRST HALF RESULTS FINANCIAL STATEMENTS (9/11) CAPEX (€ Million) H1 23 Weight H1 22 Weight Biedronka 196 43% 161 51% Distribution Portugal 114 25% 95 30% Ara 127 28% 34 11% Others 23 5% 28 9% Total CAPEX 459 100% 318 100% 31

  32. Slide 32: Financial Statements (10/11): Working Capital

    FIRST HALF RESULTS FINANCIAL STATEMENTS (10/11) WORKING CAPITAL IFRS16 Excl. IFRS16 (€ Million) H1 23 H1 22 H1 23 H1 22 Inventories 1,676 1,295 1,676 1,295 in days of sales 21 20 21 20 Customers 47 37 47 37 in days of sales 1 1 1 1 Suppliers 1 -4,212 -3,569 -4,212 -3,569 in days of sales 1 -53 -54 -

  33. Slide 33: Financial Statements (11/11): Total Borrowings

    FIRST HALF RESULTS FINANCIAL STATEMENTS (11/11) TOTAL BORROWINGS / FINANCIAL LEASES (€ Million) H1 23 H1 22 Long Term Borrowings / Financial leases 309 309 as % of Total 43.9% 60.9% Average Maturity (years) 3.5 3.7 Short Term Borrowings / Financial leases 395 198 as % of Total 56.1% 39.1% Total Borr

  34. Slide 34: Outlook 2023: Our Strategic Vision

    FIRST HALF 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 levera

  35. Slide 35: Outlook 2023: Biedronka

    FIRST HALF 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 new intensified since the last of its

  36. Slide 36: Outlook 2023: Pingo Doce & Recheio

    FIRST HALF 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 posed by lower consumer promotional dynamics, maintaining a refurbishment programme to roll out demand and trading down low-price po

  37. Slide 37: Outlook 2023: Ara

    FIRST HALF 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, with

  38. Slide 38: Outlook 2023: Corporate Responsibility (1/2)

    FIRST HALF 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- free

  39. Slide 39: Outlook 2023: Corporate Responsibility (2/2)

    FIRST HALF 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 enviro

  40. Slide 40: Outlook 2023: Final Remarks

    FIRST HALF 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, effic

  41. Slide 41: Disclaimer

    FIRST HALF 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 un

  42. Slide 42: Jerónimo Martins

    Jerénimo Martins

Jeronimo Martins Pe — H1 2023 Earnings Presentation on 6ix