Jeronimo Martins Pe (JRONF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen, and thank you for joining this call. Before I take you through the Geronimo Martins 2025 full year results, I will give the floor to our chairman and CEO, Mr. Pedro Soares Sánchez. Mr. Pedro Sánchez, the floor is yours. Good morning, ladies and gentlemen. After a very tough 2024, 2025 was again a very challenging year for our companies in the countries where we operated. We knew it would not be a walk on the park, and it wasn't. Quite on the contrary, we face pressure everywhere. Global geopolitical and trade tensions, severe supply chain risks, only aggravated by the very recent escalation in the Middle East, have been weakening growth and negatively affecting consumers. and also business confidence. Our solid sales performance in the year was achieved in a context of very price-sensitive consumers and of tough competition. Biedronka celebrated its third anniversary with a reinforcing commercial dynamic and price leadership. Despite the very intensive competitive environment, driven by expense capacity of all players in a food market that lose volumes for the second year, once again, Bia Dronca gained market share. On top of the strong focus on sales, Bia Dronca adapted a heavy feast on costs and paid extra attention to productivity to compensate for raising costs, particularly wage-related. We are fully aware of how much the sustainability of our business rely on sales moment to dilute fixed costs, particularly when labor expenses across the group are increasing above the pace of the sales growth. Our extreme focus on the top line is rooted in this awareness and I see no room for relief. on this matter. In 2025, the response of our companies in the face of multiple sources of pressure on cost was decided to protect profitability....