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

Jeronimo Martins, Sgps — Jeronimo Martins Pe — Q1 2024 Earnings Presentation

40 slides from Jeronimo Martins, Sgps's earnings presentation, Apr 26, 2024

  1. Slide 1: Market Release Factsheet

    > MARKET RELEASE > FACTSHEET 26 April, 2024

  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 2024 SNAPSHOT 5. Q1 2024 EBITDA PERFORMANCE 5.1. EBITDA 2. Q1 2024 THE CONTEXT 5.2. EBITDA Margin 3. Q1 2024 KEY FIGURES 3.1. Income Statement 6. Q1 2024 FINAL REMARKS 3.2. Cash Flow 3.3. Balance Sheet APPENDIX Financial Statements 4. Q1 2024 SALES PERFORMANCE Out

  4. Slide 4: Q1 2024 Snapshot

    FIRST QUARTER RESULTS 1. Q1 2024 SNAPSHOT Solid sales growth , despite basket deflation in our largest retail banners High cost inflation mainly driven by rising labour €508 mn 6.3% costs EBITDA EBITDA Mg (+13.9%) (-26 bps ) Intensifying competitive dynamics , particularly in Poland Unwavering focus

  5. Slide 5: Q1 2024 The Context

    FIRST QUARTER RESULTS 2. Q1 2024 THE CONTEXT Low country food inflation and high cost inflation in all our geographies Poland: Subdued consumer demand, low food inflation and high cost inflation have intensified competition Portugal: Cautious consumer behaviour, strongly promotions-driven Colombia:

  6. Slide 6: Q1 2024 Key Figures: Income Statement

    FIRST QUARTER RESULTS 3. Q1 2024 KEY FIGURES 3.1. INCOME STATEMENT GROSS MARGIN (€ Million) Q1 24 Q1 23 ∆ EVOLUTION Net Sales and Services 8,066 6,804 18.6% REFLECTS PRICE Gross Profit 1,650 20.5% 1,414 20.8% 16.7% INVESTMENT TO Operating Costs EBITDA -1,142 -14.2% 508 6.3% -967 -14.2% 446 6.6% 18.0

  7. Slide 7: Q1 2024 Key Figures: Cash Flow

    FIRST QUARTER RESULTS 3. Q1 2024 KEY FIGURES 3.2. CASH FLOW (€ Million) Q1 24 Q1 23 CASH OUTFLOW EBITDA 508 446 REFLECTS BUSINESS Capitalised Operating Leases Payment -94 -81 SEASONALITY AND Interest Payment -65 -38 DEFLATION AT THE Other Financial Items 0 0 WORKING CAPITAL, Income Tax -58 -49 ALTHO

  8. Slide 8: Q1 2024 Key Figures: Balance Sheet

    FIRST QUARTER RESULTS 3. Q1 2024 KEY FIGURES 3.3. BALANCE SHEET STRONG (€ Million) Q1 24 2023 Q1 23 BALANCE SHEET Net Goodwill 637 635 613 MAINTAINED Net Fixed Assets 5,587 5,533 4,681 Net Rights of Use (RoU) 3,371 3,074 2,589 Total Working Capital -4,086 -4,314 -3,545 DIVIDENDS IN THE Others 224 23

  9. Slide 9: Q1 2024 Sales Performance: Group

    FIRST QUARTER RESULTS 4. Q1 2024 SALES PERFORMANCE 4.1. GROUP • Competitive pricing delivered solid sales growth across all banners despite basket deflation • Positive calendar effect from the leap year and early Easter • Strong positive FX impact 9

  10. Slide 10: Q1 2024 Sales Performance: Biedronka

    FIRST QUARTER RESULTS 4. Q1 2024 SALES PERFORMANCE 4.2. BIEDRONKA • Reinforced price competitiveness drove sound volume growth • Basket deflation throughout the quarter. Relevant gap vs the country’s food inflation • 28 stores opened in Q1 (27 net additions) and 62 remodellings • Solid sales perform

  11. Slide 11: Q1 2024 Sales Performance: Hebe

    FIRST QUARTER RESULTS 4. Q1 2024 SALES PERFORMANCE 4.3. HEBE • Strong sales performance reflecting the strength of the value proposition and the investment in growing the online channel that represented 20% of sales in the quarter • 7 new stores opened in Q1 24 to reach a total network of 350 stores

  12. Slide 12: Q1 2024 Sales Performance: Pingo Doce

    FIRST QUARTER RESULTS 4. Q1 2024 SALES PERFORMANCE 4.4. PINGO DOCE • Volume driven performance • Basket deflation over the period • Intense promotional activity and increased contribution of meal solutions in the refurbished stores, drove strong sales delivery • Focused on strengthening differentiat

  13. Slide 13: Q1 2024 Sales Performance: Recheio

    FIRST QUARTER RESULTS 4. Q1 2024 SALES PERFORMANCE 4.5. RECHEIO • Solid delivery against a demanding comparison with Q1 23 • One store remodelled 13

  14. Slide 14: Q1 2024 Sales Performance: Ara

    FIRST QUARTER RESULTS 4. Q1 2024 SALES PERFORMANCE 4.6. ARA • Intense and assertive commercial strategy to keep gaining consumer preference and increase volumes • 27 stores opened in Q1 24, of which 3 Bodegas del Canasto • New distribution centre operational from January 14

  15. Slide 15: Q1 2024 EBITDA Performance: EBITDA

    FIRST QUARTER RESULTS 5. Q1 2024 EBITDA PERFORMANCE 5.1. EBITDA • Successful implementation of our strategy, with EBITDA increase driven by sales growth and benefiting, in euros, of FX +5.1% +13.9% 15

  16. Slide 16: Q1 2024 EBITDA Performance: EBITDA Margin

    FIRST QUARTER RESULTS 5. Q1 2024 EBITDA PERFORMANCE 5.2. EBITDA MARGIN • Biedronka margin pressured by price investment and cost increases • Improved EBITDA margin for Hebe followed strong sales growth • Margin pressure in Portugal reflected price investment to drive strong sales • Margin pressure i

  17. Slide 17: Q1 2024 Final Remarks

    FIRST QUARTER RESULTS 6. Q1 2024 FINAL REMARKS CHALLENGING CONTEXT We stood firm in our commitment to offer competitive prices and promotions in the three countries COMBINING BASKET DEFLATION AND HIGH This strategic focus, together with the overall quality of the offer, drove positive volumes in all

  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 2024 CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS 19

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (1/9) INCOME STATEMENT (Excl. IFRS16) (€ Million) Q1 24 Q1 23 ∆ Net Sales and Services 8,066 6,804 18.6% Gross Profit 1,650 20.5% 1,414 20.8% 16.7% Operating Costs -1,288 -16.0% -1,086 -16.0% 18.5% EBITDA 363 4.5% 327 4.8% 10.8% Depreciation -146 -1.8% -120

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (2/9) CASH FLOW (Excl. IFRS16) (€ Million) Q1 24 Q1 23 EBITDA 363 327 Interest Payment -12 1 Other Financial Items 0 0 Income Tax -58 -49 Funds From Operations 293 279 Capex Payment -267 -261 Change in Working Capital -192 -242 Others -2 -3 Cash Flow -168 -

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (3/9) BALANCE SHEET (Excl. IFRS16) (€ Million) Q1 24 2023 Q1 23 Net Goodwill 637 635 613 Net Fixed Assets 5,587 5,533 4,681 Total Working Capital -4,080 -4,309 -3,540 Others 190 203 114 Invested Capital 2,334 2,061 1,868 Total Borrowings 790 765 477 Financi

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (4/9) EBITDA BREAKDOWN IFRS16 Excl. IFRS16 (€ Million) Q1 24 Mg Q1 23 Mg Q1 24 Mg Q1 23 Mg Biedronka 444 7.7% 390 8.1% 344 6.0% 309 6.4% Hebe 7 5.4% 5 5.1% -1 n.a. -2 n.a. Distribution Portugal 78 5.3% 77 5.6% 59 4.0% 59 4.3% Ara 18 2.5% 14 2.9% 0 0.0% 3 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 24 Q1 23 Q1 24 Q1 23 Net Interest -8 1 -8 1 Interests on Capitalised Operating Leases -53 -38 - - Exchange Differences 3 -1 1 -2 Others -3 -3 -3 -3 Net Financial Costs -61 -41 -10 -4 24

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (6/9) SALES BREAKDOWN Q1 24 Q1 23 ∆% (€ Million) % total % total excl. FX Euro Biedronka 5,751 71.3% 4,841 71.1% 9.3% 18.8% Hebe 130 1.6% 93 1.4% 28.0% 39.2% Pingo Doce 1,166 14.5% 1,077 15.8% 8.3% Recheio 303 3.8% 295 4.3% 2.7% Ara 711 8.8% 494 7.3% 20.0%

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (7/9) SALES GROWTH Total Sales Growth LFL Growth Q1 24 Q1 24 Biedronka Euro 18.8% PLN 9.3% 4.6% Hebe Euro 39.2% PLN 28.0% 18.2% Pingo Doce 8.3% 9.1% Excl. Fuel 8.7% 9.5% Recheio 2.7% 3.4% Ara Euro 43.9% COP 20.0% 5.8% Total JM Euro 18.6% Excl. FX 9.9% 5.5%

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (8/9) STORE NETWORK Openings Closings Number of Stores 2023 Q1 24 Q1 23 Q1 24 Q1 24 Biedronka * 3,569 28 1 3,596 3,404 Hebe ** 345 7 0 352 315 Pingo Doce 482 1 0 483 474 Recheio 43 0 0 43 43 Ara *** 1,290 27 0 1,317 1,156 Closings Openings Sales Area (sqm)

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

    FIRST QUARTER RESULTS FINANCIAL STATEMENTS (9/9) CAPEX (€ Million) Q1 24 Weight Q1 23 Weight Biedronka 61 35% 72 35% Distribution Portugal 77 44% 44 22% Ara 30 17% 79 39% Others 8 5% 10 5% Total CAPEX 176 100% 206 100% 28

  29. Slide 29: Outlook 2024 (1/5)

    FIRST QUARTER RESULTS OUTLOOK 2024 (1/5) (released by March 6, 2024) Complex geopolitical context driving uncertainty on global economic developments for 2024 As 2024 starts, our main retail banners are already working in deflation. They now face a period in which the combination of rapid decrease i

  30. Slide 30: Outlook 2024 (2/5): Poland

    FIRST QUARTER RESULTS IN POLAND… OUTLOOK 2024 (2/5) Minimum wage in the country was (released by March 6, 2024) increased by 17.8% in January with a new increase of 1.4% BIEDRONKA … following in July Will maintain price leadership and prioritize sales growth, leveraging its Despite subdued food reta

  31. Slide 31: Outlook 2024 (3/5): Portugal

    FIRST QUARTER RESULTS IN PORTUGAL… OUTLOOK 2024 (3/5) (released by March 6, 2024) Low food inflation / deflation PINGO DOCE … Promotions-driven food retail Will maintain a strong commercial dynamic, standing by consumers market Will continue the implementation of the new store concept, enhancing the

  32. Slide 32: Outlook 2024 (4/5): Colombia

    FIRST QUARTER RESULTS IN COLOMBIA… OUTLOOK 2024 (4/5) (released by March 6, 2024) Food inflation expected to continue to decline although there ARA … is a degree of uncertainty related to the potential severity of the El Will remain focused on protecting price leadership, offering the best value opt

  33. Slide 33: Outlook 2024 (5/5)

    FIRST QUARTER RESULTS OUTLOOK 2024 (5/5) (released by March 6, 2024) CHALLENGING CONTEXT THAT WE WILL ADDRESS FROM A POSITION OF STRENGTH Leading price positions LEADING COMPETITIVE POSITIONS Business models that have been consistently reinforced year after year – offer and store networks Consistent

  34. Slide 34: Corporate Responsibility 2024-2026 Commitments (1/5)

    FIRST QUARTER RESULTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS (1/5) PROMOTING GOOD HEALTH THROUGH FOOD 2024-2026 commitments 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, glut

  35. Slide 35: Corporate Responsibility 2024-2026 Commitments (2/5)

    FIRST QUARTER RESULTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS (2/5) RESPECTING THE ENVIRONMENT 2024-2026 commitments Reduce the Group's scopes 1 and 2 emissions, in absolute terms, by at least 10% by 2026, compared to 2021 (aligned with target submitted to the SBTi near-term target) Reduce c

  36. Slide 36: Corporate Responsibility 2024-2026 Commitments (3/5)

    FIRST QUARTER RESULTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS (3/5) 2024-2026 commitments 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 an

  37. Slide 37: Corporate Responsibility 2024-2026 Commitments (4/5)

    FIRST QUARTER RESULTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS (4/5) 2024-2026 commitments 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 equa

  38. Slide 38: Corporate Responsibility 2024-2026 Commitments (5/5)

    FIRST QUARTER RESULTS CORPORATE RESPONSIBILITY: 2024-2026 COMMITMENTS (5/5) 2024-2026 commitments 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 th

  39. Slide 39: Disclaimer

    FIRST QUARTER 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 uncertaintie

  40. Slide 40: Jerónimo Martins

    Jeronimo Martins

Jeronimo Martins Pe — Q1 2024 Earnings Presentation on 6ix