Jeronimo Martins, Sgps S.a. · EURONEXT:JMT
Jeronimo Martins, Sgps — Jeronimo Martins Pe — H1 2024 Earnings Presentation
42 slides from Jeronimo Martins, Sgps's earnings presentation, Jul 25, 2024
Slide 1: Market Release Factsheet
> MARKET RELEASE > FACTSHEET 25 July, 2024
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
Slide 3: Content
FIRST HALF RESULTS CONTENT 1. H1 2024 SNAPSHOT 5. H1 2024 EBITDA PERFORMANCE 5.1. EBITDA 2. H1 2024 THE CONTEXT 5.2. EBITDA Margin 3. H1 2024 KEY FIGURES 3.1. Income Statement 3.2. Cash Flow 6. H1 2024 FINAL REMARKS 3.3. Balance Sheet 7. OUTLOOK 2024 3.4. Capex 4. H1 2024 SALES PERFORMANCE APPENDIX
Slide 4: H1 2024 Snapshot
1. H1 2024 SNAPSHOT FIRST HALF RESULTS Challenging context characterised by muted consumer demand, significantly lower food inflation vs the past two years, and soaring cost inflation, mainly due to wage €1.0 bn 6.4% increases, leading to very intense competition EBITDA EBITDA Mg (+3.5%) (-54 bps )
Slide 5: H1 2024 The Context
2. H1 2024 THE CONTEXT FIRST HALF RESULTS Persisting imbalance between low food inflation and high cost inflation in all our geographies Poland: Muted consumer demand and highly intense competition Portugal: Conservative consumer behaviour, valuing promotional opportunities Colombia: Extremely fragi
Slide 6: H1 Income Statement
3. H1 2024 KEY FIGURES FIRST HALF RESULTS 3.1. H1 INCOME STATEMENT (€ Million) H1 24 H1 23 ∆ OPERATIONAL LEVERAGE HAMPERED Net Sales and Services 16,298 14,513 12.3% BY BASKET DEFLATION Gross Profit 3,318 20.4% 2,970 20.5% 11.7% AND COST INFLATION Operating Costs -2,277 -14.0% -1,965 -13.5% 15.9% EB
Slide 7: Q2 Income Statement
3. H1 2024 KEY FIGURES FIRST HALF RESULTS 3.1. Q2 INCOME STATEMENT NEGATIVE (€ Million) Q2 24 Q2 23 ∆ CALENDAR EFFECT Net Sales and Services 8,232 7,709 6.8% AND SALES Gross Profit 1,667 20.3% 1,556 20.2% 7.1% DEFLATION Operating Costs -1,136 -13.8% -998 -12.9% 13.8% IMPACTING TOP LINE EBITDA 532 6.
Slide 8: Cash Flow
3. H1 2024 KEY FIGURES FIRST HALF RESULTS 3.2. CASH FLOW CASH OUTFLOW (€ Million) H1 24 H1 23 AFFECTED EBITDA 1,040 1,005 PRIMARILY BY THE Capitalised Operating Leases Payment -189 -165 IMPACT OVER Interest Payment -136 -87 GROWTH OF THE Other Financial Items 0 0 ABRUPT Income Tax -197 -123 TRANSITI
Slide 9: Balance Sheet
3. H1 2024 KEY FIGURES FIRST HALF RESULTS 3.3. BALANCE SHEET (€ Million) H1 24 2023 H1 23 STRONG Net Goodwill 637 635 628 BALANCE SHEET Net Fixed Assets 5,605 5,533 4,994 MAINTAINED Net Rights of Use (RoU) 3,365 3,074 2,868 Total Working Capital -3,856 -4,314 -3,708 Others 343 235 173 DIVIDENDS OF I
Slide 10: Capex | Executing as Planned
3. H1 2024 KEY FIGURES FIRST HALF RESULTS 3.4. CAPEX | EXECUTING AS PLANNED CAPEX OF €396 MN IN H1 24 • New Stores OUTLOOK 2024FY 60 Biedronka (51 net) 17 Hebe (16 net) • New Stores 130-150 Biedronka (net) 4 Pingo Doce (3 net) c.30 Hebe 59 Ara c.10 Pingo Doce • Revamping c.150 Ara 104 Biedronka • Re
Slide 11: Sales Performance: Group
4. H1 2024 SALES PERFORMANCE FIRST HALF RESULTS 4.1. GROUP • Market share gains • LFL evolution supported by volumes • Q2 LFL affected by the negative calendar effect • Group LFL in H1 at 1.1%, incorporating deflation in the baskets of our main banners 11
Slide 12: Sales Performance: Biedronka
4. H1 2024 SALES PERFORMANCE FIRST HALF RESULTS 4.2. BIEDRONKA • Firm commitment to provide the best prices to Polish customers in a noticeably more competitive environment resulted in the reinforcement of the banner's commercial strategy • Reversal in Q2 of a strong positive Q1 calendar effect • Ba
Slide 13: Sales Performance: Hebe
4. H1 2024 SALES PERFORMANCE FIRST HALF RESULTS 4.3. HEBE • Good sales performance maintained throughout the period in both stores and e-commerce • Growth rate normalising after benefitting from comparatives impacted by pandemic-related restrictions 13
Slide 14: Sales Performance: Pingo Doce
4. H1 2024 SALES PERFORMANCE FIRST HALF RESULTS 4.4. PINGO DOCE • Reinforced commercial strategy, together with the roll out of ‘All About Food’ concept, drove sales growth • LFL increased solidly despite basket deflation, driven by strong volumes 14
Slide 15: Sales Performance: Recheio
4. H1 2024 SALES PERFORMANCE FIRST HALF RESULTS 4.5. RECHEIO • HoReCa segment in the country impacted by the fragile domestic consumption in out-of-home • Increased number of customers in all segments of the operation • Partnerships in Amanhecer stores increased to 651 establishments 15
Slide 16: Sales Performance: Ara
4. H1 2024 SALES PERFORMANCE FIRST HALF RESULTS 4.6. ARA • Ara executed its commercial strategy creating saving opportunities for Colombian families in a demanding context • LFL delivery through the six months period reflects a reversal in Q2 of the positive calendar effect in Q1 and a strong Q2 com
Slide 17: EBITDA
5. H1 2024 EBITDA PERFORMANCE FIRST HALF RESULTS 5.1. EBITDA • Consolidated EBITDA reflects the pressure from price investments and operational deleverage, considering basket deflation and high cost inflation -3.0% +3.5% 17
Slide 18: EBITDA Margin
5. H1 2024 EBITDA PERFORMANCE FIRST HALF RESULTS 5.2. EBITDA MARGIN • Biedronka margin pressured by significant basket deflation, strong price investment and high cost inflation • Hebe margin improving following good sales • Margin in Portugal reflected reinforced commercial strategy in a context of
Slide 19: H1 2024 Final Remarks
6. H1 2024 FINAL REMARKS FIRST HALF RESULTS CHALLENGING COMBINATION Strategic focus on strengthening our price positioning and on the quality of value propositions OF BASKET DEFLATION AND drove strong LFL volume increases in our main banners despite the tough comparison against the COST INFLATION go
Slide 20: Outlook 2024 (1/3)
7. OUTLOOK 2024 (1/3) FIRST HALF RESULTS Acknowledging the challenge of 2024 context, 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,
Slide 21: Outlook 2024 (2/3)
7. OUTLOOK 2024 (2/3) FIRST HALF RESULTS Upon entering H2, Biedronka, which faces a more demanding comparative in terms of volumes, will increase its price investment, reinforcing its competitive position and creating further savings and value opportunities for Polish consumers. In a period when our
Slide 22: Outlook 2024 (3/3)
7. OUTLOOK 2024 (3/3) FIRST HALF RESULTS Pingo Doce will maintain its strong and recognized commercial dynamic and will continue to implement the new store concept that highlights the brand's differentiation in meal solutions and fresh products and offers innovative service solutions valued by custo
Slide 23: Q&A
FIRST HALF RESULTS Q&A Group CFO Ana Luísa Virgínia 23
Slide 24: Appendix
APPENDIX FIRST HALF RESULTS FINANCIAL STATEMENTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS 24
Slide 25: Financial Statements (1/11): Income Statement
FINANCIAL STATEMENTS (1/11) FIRST HALF RESULTS INCOME STATEMENT (Excl. IFRS16) (Excl. IFRS16) (€ Million) H1 24 H1 23 ∆ Q2 24 Q2 23 ∆ Net Sales and Services 16,298 14,513 12.3% 8,232 7,709 6.8% Gross Profit 3,318 20.4% 2,970 20.5% 11.7% 1,667 20.3% 1,556 20.2% 7.1% Operating Costs -2,576 -15.8% -2,2
Slide 26: Financial Statements (2/11): Cash Flow
FIRST HALF RESULTS FINANCIAL STATEMENTS (2/11) CASH FLOW (Excl. IFRS16) (€ Million) H1 24 H1 23 EBITDA 742 758 Interest Payment -27 -5 Other Financial Items 0 0 Income Tax -197 -123 Funds From Operations 519 630 Capex Payment -527 -495 Change in Working Capital -323 -244 Others -52 -18 Cash Flow -38
Slide 27: Financial Statements (3/11): Balance Sheet
FINANCIAL STATEMENTS (3/11) FIRST HALF RESULTS BALANCE SHEET (Excl. IFRS16) (€ Million) H1 24 2023 H1 23 Net Goodwill 637 635 628 Net Fixed Assets 5,605 5,533 4,994 Total Working Capital -3,850 -4,309 -3,703 Others 307 203 144 Invested Capital 2,698 2,061 2,062 Total Borrowings 799 765 612 Financial
Slide 28: Financial Statements (4/11): EBITDA Breakdown
FINANCIAL STATEMENTS (4/11) FIRST HALF RESULTS EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) H1 24 Mg H1 23 Mg H1 24 Mg H1 23 Mg Biedronka 878 7.6% 872 8.5% 675 5.8% 703 6.8% Hebe 20 7.3% 14 6.8% 3 1.2% 0 0.1% Pingo Doce 132 5.5% 129 5.7% 95 4.0% 95 4.2% Recheio 30 4.6% 32 5.1% 27 4.2% 29 4.6% Ar
Slide 29: Financial Statements (5/11): Financial Results
FINANCIAL STATEMENTS (5/11) FIRST HALF RESULTS FINANCIAL RESULTS IFRS16 Excl. IFRS16 (€ Million) H1 24 H1 23 H1 24 H1 23 Net Interest -19 -2 -19 -2 Interests on Capitalised Operating Leases -109 -82 - - Exchange Differences 4 11 2 -6 Others -6 -5 -6 -5 Net Financial Costs -130 -78 -23 -14 29
Slide 30: Financial Statements (6/11): Sales Breakdown
FINANCIAL STATEMENTS (6/11) FIRST HALF RESULTS SALES BREAKDOWN H1 24 H1 23 ∆% Q2 24 Q2 23 ∆% (€ Million) % total % total excl. FX Euro % total % total excl. FX Euro Biedronka 11,539 70.8% 10,316 71.1% 4.5% 11.9% 5,788 70.3% 5,475 71.0% 0.1% 5.7% Hebe 271 1.7% 208 1.4% 22.0% 30.6% 142 1.7% 115 1.5% 1
Slide 31: Financial Statements (7/11): Sales Growth
FINANCIAL STATEMENTS (7/11) FIRST HALF RESULTS SALES GROWTH Total Sales Growth Q1 24 Q2 24 H1 24 Q1 24 LFL Growth Q2 24 H1 24 Biedronka Euro 18.8% 5.7% 11.9% PLN 9.3% 0.1% 4.5% 4.6% -4.6% -0.2% Hebe Euro 39.2% 23.5% 30.6% PLN 28.0% 16.8% 22.0% 18.2% 7.5% 12.4% Pingo Doce 8.3% 3.7% 5.9% 9.1% 3.0% 5.9
Slide 32: Financial Statements (8/11): Store Network
FINANCIAL STATEMENTS (8/11) FIRST HALF RESULTS STORE NETWORK Openings Closings Number of Stores 2023 H1 24 H1 23 Q1 24 Q2 24 H1 24 Biedronka * 3,569 28 32 9 3,620 3,432 Hebe ** 345 7 10 1 361 323 Pingo Doce 482 1 3 1 485 477 Recheio 43 0 0 0 43 43 Ara *** 1,290 27 32 0 1,349 1,201 Closings Openings
Slide 33: Financial Statements (9/11): Capex
FINANCIAL STATEMENTS (9/11) FIRST HALF RESULTS CAPEX (€ Million) H1 24 Weight H1 23 Weight Biedronka 121 31% 196 43% Distribution Portugal 162 41% 114 25% Ara 68 17% 127 28% Others 45 11% 23 5% Total CAPEX 396 100% 459 100% 33
Slide 34: Financial Statements (10/11): Working Capital
FINANCIAL STATEMENTS (10/11) FIRST HALF RESULTS WORKING CAPITAL IFRS16 Excl. IFRS16 (€ Million) H1 24 H1 23 H1 24 H1 23 Inventories 1,874 1,676 1,874 1,676 in days of sales 21 21 21 21 Customers 68 47 68 47 in days of sales 1 1 1 1 Suppliers -4,479 -4,212 -4,479 -4,212 in days of sales -50 -53 -50 -
Slide 35: Financial Statements (11/11): Total Borrowings
FINANCIAL STATEMENTS (11/11) FIRST HALF RESULTS TOTAL BORROWINGS (€ Million) H1 24 H1 23 Long Term Borrowings / Financial leases 419 309 as % of Total 45.9% 43.9% Average Maturity (years) 3.2 3.5 Short Term Borrowings / Financial leases 494 395 as % of Total 54.1% 56.1% Total Borrowings / Financial
Slide 36: Corporate Responsibility 2024-2026 Commitments (1/5)
CORPORATE RESPONSIBILITY FIRST HALF 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 consume
Slide 37: Corporate Responsibility 2024-2026 Commitments (2/5)
CORPORATE RESPONSIBILITY FIRST HALF 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 CO2e pe
Slide 38: Corporate Responsibility 2024-2026 Commitments (3/5)
CORPORATE RESPONSIBILITY FIRST HALF RESULTS 2024-2026 COMMITMENTS (3/5) 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 sustainab
Slide 39: Corporate Responsibility 2024-2026 Commitments (4/5)
CORPORATE RESPONSIBILITY FIRST HALF RESULTS 2024-2026 COMMITMENTS (4/5) 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, nam
Slide 40: Corporate Responsibility 2024-2026 Commitments (5/5)
CORPORATE RESPONSIBILITY FIRST HALF 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 Societal Im
Slide 41: Disclaimer
DISCLAIMER FIRST HALF RESULTS 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 uncertainties,
Slide 42: Jerónimo Martins
Jerénimo Martins