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Jeronimo Martins — Interim / Quarterly Report 2021
Oct 27, 2021
1906_iss_2021-10-27_32c0d0f9-e100-4e3a-9583-8547ccb34cc0.pdf
Interim / Quarterly Report
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NINE MONTHS RELEASE
2021
Lisbon, 27 October 2021
ADDITIONAL INFORMATION RELATING TO THE PERIOD HERE
This release includes, in Appendix 1, for comparison purposes, the Financial Statements excluding the effect of the IFRS16.
INVESTOR RELATIONS OFFICE MEDIA RELATIONS OFFICE +351 21 752 61 05 +351 21 752 61 80 [email protected] [email protected]
Cláudia Falcão [email protected] Rita Fragoso [email protected]t Hugo Fernandes [email protected] Nuno Abreu [email protected]
.com Jerónimo Martins, SGPS, S.A. Public Company | Head office: Rua Actor António Silva, n. º7, 1649-033 Lisbon | Share Capital: Euro 629,293,220.00 | Registered at the C.R.C. of Lisbon and Tax Number: 500 100 144 | www.jeronimomartins.com
STRONG SALES LEVERAGE GOOD PERFORMANCE
9M I KEY FIGURES
+11.1% EBITDA TO €1,144 MN (+13.9% excl. FX)
+47.7% NET PROFIT TO €324 MN EPS AT €0.52
CASH FLOW AT €339 MN
PERFORMANCE OVERVIEW & KEY DRIVERS
Our strategic vision of focusing on quality at competitive prices delivered a strong performance in sales and results in the 9M.
Biedronka worked with determination to continuously improve its offer, innovate in its commercial campaigns, and uplift the quality of its store network. All this while maintaining clear price leadership. This focus, together with positive consumer demand, drove a LFL growth of 7.8% in 9M (+8.1% in Q3).
Also in Poland, and compared to the same period last year, Hebe increased sales, in local currency, by 10.8% and more than doubled online sales in the 9M, keeping EBITDA margin stable.
In Portugal, Pingo Doce and Recheio grew sales and results, despite restrictions that still hamper the operating environment, particularly in the HoReCa segment. LFL sales in the 9M were at 2.1% and 3.2%, respectively.
Ara registered a very good sales performance in Colombia and accelerated its growth in Q3. LFL was 21.5% in the 9M, reaching 39.5% in Q3. The combination of strong sales with an optimized cost structure led EBITDA to improve to €15 mn (from €-23 mn in 9M 20).
Group EBITDA margin improved from 7.3% to 7.5% in the 9M, driven by sound Group LFL of 7.1%, a positive margin mix and efficiency gains, which allowed the Group to limit the impact of the retail tax implemented in Poland.
Strong cash generation in the 9M resulted in a net cash position of €655 mn by the end of the period (excl. capitalised operating leases).
The 9M performance reflects the flexibility of the banners to pursue their strategic priorities and deliver good results, in circumstances that remain uncertain.
MESSAGE FROM THE CHAIRMAN AND CEO - PEDRO SOARES DOS SANTOS
'Our banners ended the first nine months of the year with stronger market positions as a result of consistent work to consolidate leadership in price and quality.
Biedronka maintained strong dynamics, looking for opportunities to deliver more value to its customers, to enhance its offer and its shopping experience. Our main banner further reinforced its online proposition and delivered growth while protecting profitability.
In Portugal, Pingo Doce and Recheio grew sales and results despite market circumstances that remained challenging, particularly until July, with the low circulation of people and a still fragile HoReCa sector.
In Colombia, the good performance throughout the nine months, at both sales and EBITDA levels, reflected the strength of Ara's competitive positioning as well as the winning potential of the business model, in a country where economic access to quality food is still difficult for most of the population.
At two months from year-end, with the Christmas season approaching and despite the uncertainty on the pandemic evolution, the results attained so far reinforce our confidence in achieving the growth targets set for the year.'
OUTLOOK 2021
Despite the prevailing uncertainty about the evolution of the pandemic as we enter autumn and winter, all our banners are prepared to continue to adapt to the circumstances and to find new growth paths to deliver another year of strong performance.
Biedronka will remain focused on guaranteeing the preference of consumers, combining price leadership with the evolution of its offer and reinforcement of convenience. To protect profitability, the Company counts on strong sales dynamics, ongoing efficiency projects, and the creativity to continuously improve its offer.
The quality of Biedronka's presence in the market will be reinforced in 2021 with c.100 net new stores and c.300 refurbished locations.
Hebe will continue to consolidate its store network and to focus its growth strategy on the development of its online operation to address also new markets.
In Portugal, where the restrictions to circulation were lifted in October, Pingo Doce will continue investing in the differentiation of its offer, leveraging on key strategic categories of Fresh and Take Away and in the recovery of Restaurants, to drive growth.
Recheio will benefit from the slow recovery of the HoReCa channel while working to increase its sales to the Traditional Retail segment.
In Colombia, despite a fragile socioeconomic environment, Ara has been delivering a promising performance, confirming the strength of its value proposition and the quality of the business model. It is committed to expanding its network and will add more than 100 stores to the network in 2021.
The capex programme is expected to reach c.€650 mn of which c.60% will be allocated to Biedronka.
Preserving a strong balance sheet allows us to continue to invest in growth in a context in which the effects of the pandemic diminish but uncertainty remains. Further, we maintain the flexibility to take advantage of growth opportunities consistent with our strategic vision.
Q3 UPDATE ON COVID-19 IMPACT
In Poland, after the lockdown imposed in Q1, a phased plan to reopen the country was successfully implemented throughout Q2 and maintained in Q3. The limited access to one person per 10 sqm for stores larger than 100 sqm was maintained.
In Portugal, the progressive reopening of the country started in April.
At the beginning of Q3, retail store traffic continued to be limited to a maximum of five people per 100 sqm. This limit was relaxed to eight people per 100 sqm at the end of August.
In July, in municipalities with increased risk, there were limits on closing hours of retail stores, restaurants, and coffee shops. Bars and nightclubs remained closed during the quarter.
In Colombia, the intermittent restrictions in force during Q2 to control the rising number of infections became less frequent during Q3.
PERFOMANCE ANALYSIS BY BANNER
POLAND
In Poland, the consumer demand remained positive in the first nine months of the year.
From the second quarter, the pandemic situation remained under control, and the circulation of people resumed.
Food inflation in the country progressively increased from 0.6% in Q1 and 1.6% in Q2 to 3.8% in Q3, reflecting price increases in several food categories. Biedronka maintained its price leadership and an intense promotional dynamic, resulting, throughout the 9M, in consistently lower basket inflation than the average food inflation in the country.
The banner executed a strong commercial programme, including promotions and innovative in&out campaigns, while continuing to improve its core offer and its store network. Biedronka delivered well on all these fronts and, in local currency, grew sales in the 9M by 10.3%, including a LFL of 7.8%. In euro terms, sales reached €10.6 bn, 7.3% ahead of 9M 20.
In Q3, sales in local currency increased 11.2% with LFL of 8.1%. In euro terms, sales were €3.6 bn, 8.1% growth over Q3 20.
EBITDA reached €972 mn, an increase of 6.4% vs. 9M 20 (+9.4% at constant exchange rate).
The EBITDA margin was 9.1% versus 9.2% in 9M 20. Strong LFL sales performance, effective margin-mix management, and operational efficiency allowed Biedronka to mitigate the pressure from the retail tax introduced in January 2021.
Biedronka opened 75 stores (59 net additions) and remodelled 232 locations in the first nine months of the year.
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Hebe registered sales growth in the 9M of 10.8% in local currency. Excluding the pharma business closed in July 2020, sales increased 20.3% with a LFL of 14.4% (the LFL includes online sales).
In Q3, Hebe sales increased by 11.6% (+15.4% excluding the pharma business) with a LFL of 9.0%.
In euro terms, 9M sales reached €194 mn, 7.8% ahead of 9M 20. In Q3, sales were €71 mn, 8.5% more than in Q3 20.
Online sales progressed well throughout the period, reaching 12.5% of sales in the first nine months of the year. Hebe continues to test its presence in new markets through its ecommerce platform.
Hebe's EBITDA was €11 mn versus €10 mn in 9M 20. EBITDA margin was 5.7% in line with the previous year.
3.5%
-8.5%
PORTUGAL
In Portugal, the slow economic recovery and recession in touristic activity continued to affect the economy. Food inflation remained low at 0.6% in Q3 (+0.4% in H1).
Pingo Doce's performance continued to be negatively impacted by the restrictions imposed on restaurants and coffee shops, which only eased from August, and by low circulation in city centres.
The banner maintained its commercial pressure, creating good commercial opportunities for its customers. To protect its market position and boost sales, Pingo Doce operated with negative basket inflation in the period.
In the 9M, sales reached €3.0 bn, growing 3.9% compared to the same period for the previous year with LFL (excl. fuel) of 2.1%.
In Q3, sales reached €1.0 bn, 2.7% more than in Q3 20 with LFL (excl. fuel) at 1.0%.
The banner opened six new locations (five net) and renovated nine stores.
Recheio's sales increased 3.2% to reach €660 mn with LFL at 3.2%.
In Q3, despite the limitations to the activity of restaurants and the effects of the pandemic on the HoReCa sector, Recheio grew its sales by 9.3% to reach €262 mn.
The combined EBITDA for Pingo Doce and Recheio was at €214 mn, 12.6% ahead of 9M 20. Despite the strong commercial investment, the EBITDA margin was at 5.9% (5.5% in 9M 20), benefiting from sales growth.
COLOMBIA
In Colombia, after a challenging Q2 due to the intensification of the pandemic situation, the operating environment eased in Q3 as daily infections were controlled and social tensions, despite persisting, did not impact the country's supply chain as in Q2.
Food inflation increased through the period, reaching 11.2% in Q3 from 6.1% in H1.
-1.7% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Ara registered in the 9M strong sales growth that reached, in local currency, 31.6% including LFL of 21.5%, recovering over Q2 and Q3 in 2020 when the country was under a strict lockdown.
In Q3, in a more normalised operating environment, Ara grew sales in local currency by 53.6% with LFL at 39.5%.
In euro terms, 9M sales reached €758 mn, 23.1% ahead of 9M 20. In Q3 sales were €284 mn, 47.7% ahead of Q3 20.
EBITDA reached €15 mn in 9M 21 versus €-23 mn in 9M 20. This turning point reflects the determination to build a path to profitability on a solid sales base and was also boosted by the cost optimization undertaken in 2020.
To further contribute to this growth, the expansion plan execution added 64 stores to the network in the first 9M. The pipeline for the rest of the year is prepared to continue delivering.
-1.5% -2.0% -1.6%
Pingo Doce LFL (excl. fuel)
Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
7.3%
1.0%
CONSOLIDATED FINANCIAL HEADINGS
At the Group level, the top line grew 7.1% (+9.6% excl. FX). The growth registered in all banners contributed to improving operational leverage, driving EBITDA to increase ahead of sales by 11.1% (+13.9% excl. FX). The EBITDA figure includes Covid-19 related costs of €13 mn (€32 mn in 9M 20).
Net financial costs were €-119 mn in 9M 21 (€-140 mn in 9M 20), incorporating an exchange translation loss of €-4 mn related to value adjustments in the lease liabilities in Poland denominated in euros that in 9M 20 were a loss of €-20 mn.
Our capex programme (excluding the right of use assets acquired in accordance with IFRS16) was €364 mn, 66% of which was allocated to Biedronka.
Good operational performance combined with disciplined management of the invested capital resulted in a net cash position (excl. capitalised operating leases) of €655 mn by the end of September.
KEY PERFOMANCE FIGURES
CONSOLIDATED RESULTS
| (Million Euro) | 9M 21 | 9M 20 | ∆ | Q3 21 | Q3 20 | ∆ | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales and Services | 15,206 | 14,198 | 7.1% | 5,304 | 4,881 | 8.7% | ||||
| Gross Profit | 3,289 | 21.6% | 3,116 | 21.9% | 5.6% | 1,156 | 21.8% | 1,084 | 22.2% | 6.6% |
| Operating Costs | -2,145 -14.1% | -2,087 -14.7% | 2.8% | -726 -13.7% | -690 -14.1% | 5.3% | ||||
| EBITDA | 1,144 | 7.5% | 1,029 | 7.3% | 11.1% | 429 | 8.1% | 395 | 8.1% | 8.8% |
| Depreciation | -556 | -3.7% | -545 | -3.8% | 2.1% | -185 | -3.5% | -183 | -3.8% | 0.9% |
| EBIT | 588 | 3.9% | 485 | 3.4% | 21.3% | 244 | 4.6% | 211 | 4.3% | 15.6% |
| Net Financial Costs | -119 | -0.8% | -140 | -1.0% | -14.8% | -45 | -0.9% | -45 | -0.9% | 1.2% |
| Gains in Joint Ventures and Associates | 0 | 0.0% | 0 | 0.0% | n.a. | 0 | 0.0% | 0 | 0.0% | n.a. |
| Other Profits/Losses | -7 | 0.0% | -21 | -0.1% | n.a. | -2 | 0.0% | -1 | 0.0% | n.a. |
| EBT | 461 | 3.0% | 324 | 2.3% | 42.6% | 198 | 3.7% | 166 | 3.4% | 18.8% |
| Income Tax | -120 | -0.8% | -95 | -0.7% | 26.1% | -50 | -0.9% | -41 | -0.8% | 22.1% |
| Net Profit | 341 | 2.2% | 229 | 1.6% | 49.4% | 147 | 2.8% | 125 | 2.6% | 17.7% |
| Non-Controlling Interests | -18 | -0.1% | -9 | -0.1% | 87.8% | -10 | -0.2% | -10 | -0.2% | -2.6% |
| Net Profit Attributable to JM | 324 | 2.1% | 219 | 1.5% | 47.7% | 137 | 2.6% | 115 | 2.4% | 19.5% |
| EPS (€) | 0.52 | 0.35 | 47.7% | 0.22 | 0.18 | 19.5% | ||||
| EPS without Other Profits/Losses (€) | 0.52 | 0.37 | 40.1% | 0.22 | 0.18 | 20.0% |
BALANCE SHEET
| (Million Euro) | 9M 21 | 2020 | 9M 20 |
|---|---|---|---|
| Net Goodwill | 616 | 620 | 621 |
| Net Fixed Assets | 3,951 | 3,967 | 3,853 |
| Net Rights of Use (RoU) | 2,139 | 2,154 | 2,109 |
| Total Working Capital | -2,867 | -2,864 | -2,573 |
| Others | 167 | 133 | 140 |
| Invested Capital | 4,006 | 4,010 | 4,150 |
| Total Borrowings | 492 | 524 | 548 |
| Financial Leases | 20 | 11 | 13 |
| Capitalised Operating Leases | 2,276 | 2,262 | 2,205 |
| Accrued Interest | 0 | -3 | 1 |
| Cash and Cash Equivalents | -1,167 | -1,041 | -872 |
| Net Debt | 1,621 | 1,752 | 1,894 |
| Non-Controlling Interests | 250 | 249 | 248 |
| Share Capital | 629 | 629 | 629 |
| Reserves and Retained Earnings | 1,506 | 1,379 | 1,379 |
| Shareholders Funds | 2,386 | 2,257 | 2,256 |
CASH FLOW
| (Million Euro) | 9M 21 | 9M 20 |
|---|---|---|
| EBITDA | 1,144 | 1,029 |
| Capitalised Operating Leases Payment | -208 | -203 |
| Interest Payment | -110 | -114 |
| Other Financial Items | 0 | 0 |
| Income Tax | -149 | -142 |
| Funds From Operations | 677 | 572 |
| Capex Payment | -429 | -367 |
| Change in Working Capital | 96 | 18 |
| Others | -6 | -17 |
| Cash Flow | 339 | 205 |
DISCLAIMER
Statements in this release 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 uncertainties, which have increased as a result of the Covid-19 pandemic, relate to factors that are beyond Jerónimo Martins' ability to control or estimate precisely, and include but are not limited to, general economic conditions, actions taken by governmental authorities to address Covid-19 effects and their impacts over the economy, competition, industry trends, credit markets, foreign exchange fluctuations, and regulatory developments.
Except as required by any applicable law or regulation, Jerónimo Martins assumes no obligation to update the information contained in this release or to notify a reader in the event that any matter stated herein changes or becomes inaccurate.
APPENDIX
1. Financial Statements
INCOME STATEMENT BY FUNCTIONS
| (Million Euro) | IFRS16 | Excl. IFRS16 | |||
|---|---|---|---|---|---|
| 9M 21 | 9M 20 | 9M 21 | 9M 20 | ||
| Net Sales and Services | 15,206 | 14,198 | 15,206 | 14,198 | |
| Cost of Sales | -11,917 | -11,082 | -11,917 | -11,082 | |
| Gross Profit | 3,289 | 3,116 | 3,289 | 3,116 | |
| Distribution Costs | -2,442 | -2,381 | -2,509 | -2,444 | |
| Administrative Costs | -260 | -251 | -261 | -252 | |
| Other Operating Profits/Losses | -8 | -21 | -8 | -21 | |
| Operating Profit | 580 | 464 | 512 | 400 | |
| Net Financial Costs | -119 | -140 | -19 | -25 | |
| Gains/Losses in Other Investments | 0 | 0 | 0 | 0 | |
| Gains in Joint Ventures and Associates | 0 | 0 | 0 | 0 | |
| Profit Before Taxes | 461 | 324 | 493 | 375 | |
| Income Tax | -120 | -95 | -125 | -103 | |
| Profit Before Non Controlling Interests | 341 | 229 | 369 | 271 | |
| Non-Controlling Interests | -18 | -9 | -19 | -11 | |
| Net Profit Attributable to JM | 324 | 219 | 349 | 260 |
INCOME STATEMENT (Management View)
| (Excl. IFRS16) | (Excl. IFRS16) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Million Euro) | 9M 21 | 9M 20 | ∆ | Q3 21 | Q3 20 | ∆ | ||||
| Net Sales and Services | 15,206 | 14,198 | 7.1% | 5,304 | 4,881 | 8.7% | ||||
| Gross Profit | 3,289 | 21.6% | 3,116 | 21.9% | 5.6% | 1,156 | 21.8% | 1,084 | 22.2% | 6.6% |
| Operating Costs | -2,450 | -16.1% | -2,385 | -16.8% | 2.7% | -829 | -15.6% | -789 | -16.2% | 5.1% |
| EBITDA | 840 | 5.5% | 731 | 5.1% | 14.9% | 327 | 6.2% | 296 | 6.1% | 10.6% |
| Depreciation | -320 | -2.1% | -310 | -2.2% | 3.2% | -106 | -2.0% | -105 | -2.2% | 1.0% |
| EBIT | 519 | 3.4% | 421 | 3.0% | 23.5% | 221 | 4.2% | 191 | 3.9% | 15.9% |
| Net Financial Costs | -19 | -0.1% | -25 | -0.2% | -24.4% | -6 | -0.1% | -7 | -0.1% | -12.9% |
| Gains in Joint Ventures and Associates | 0 | 0.0% | 0 | 0.0% | n.a. | 0 | 0.0% | 0 | 0.0% | n.a. |
| Other Profits/Losses | -7 | 0.0% | -21 | -0.1% | n.a. | -2 | 0.0% | -1 | 0.0% | n.a. |
| EBT | 493 | 3.2% | 375 | 2.6% | 31.7% | 213 | 4.0% | 183 | 3.8% | 16.5% |
| Income Tax | -125 | -0.8% | -103 | -0.7% | 21.0% | -53 | -1.0% | -44 | -0.9% | 20.4% |
| Net Profit | 369 | 2.4% | 271 | 1.9% | 35.8% | 161 | 3.0% | 139 | 2.9% | 15.2% |
| Non-Controlling Interests | -19 | -0.1% | -11 | -0.1% | 71.3% | -11 | -0.2% | -11 | -0.2% | -3.2% |
| Net Profit Attributable to JM | 349 | 2.3% | 260 | 1.8% | 34.2% | 150 | 2.8% | 128 | 2.6% | 16.8% |
| EPS (€) | 0.56 | 0.41 | 34.2% | 0.24 | 0.20 | 16.8% | ||||
| EPS without Other Profits/Losses (€) | 0.56 | 0.44 | 28.4% | 0.24 | 0.20 | 17.3% |
BALANCE SHEET
| (Excl. IFRS16) | |||
|---|---|---|---|
| (Million Euro) | 9M 21 | 2020 | 9M 20 |
| Net Goodwill | 616 | 620 | 621 |
| Net Fixed Assets | 3,951 | 3,967 | 3,853 |
| Total Working Capital | -2,863 | -2,861 | -2,569 |
| Others | 144 | 115 | 124 |
| Invested Capital | 1,849 | 1,842 | 2,029 |
| Total Borrowings | 492 | 524 | 548 |
| Financial Leases | 20 | 11 | 13 |
| Accrued Interest | 0 | -3 | 1 |
| Cash and Cash Equivalents | -1,167 | -1,041 | -872 |
| Net Debt | -655 | -509 | -311 |
| Non-Controlling Interests | 258 | 255 | 253 |
| Share Capital | 629 | 629 | 629 |
| Reserves and Retained Earnings | 1,617 | 1,467 | 1,458 |
| Shareholders Funds | 2,505 | 2,351 | 2,341 |
CASH FLOW
| (Excl. IFRS16) | ||
|---|---|---|
| (Million Euro) | 9M 21 | 9M 20 |
| EBITDA | 840 | 731 |
| Interest Payment | -13 | -19 |
| Other Financial Items | 0 | 0 |
| Income Tax | -149 | -142 |
| Funds From Operations | 677 | 571 |
| Capex Payment | -429 | -367 |
| Change in Working Capital | 96 | 18 |
| Others | -5 | -16 |
| Cash Flow | 339 | 205 |
EBITDA BREAKDOWN
| IFRS16 | Excl. IFRS16 | |||||||
|---|---|---|---|---|---|---|---|---|
| (Million Euro) | 9M 21 | Mg | 9M 20 | Mg | 9M 21 | Mg | 9M 20 | Mg |
| Biedronka | 972 | 9.1% | 913 | 9.2% | 764 | 7.2% | 709 | 7.2% |
| Distribution Portugal | 214 | 5.9% | 190 | 5.5% | 162 | 4.5% | 139 | 4.0% |
| Ara | 15 | 2.0% | -23 | n.a. | -10 | n.a. | -47 | n.a. |
| Hebe | 11 | 5.7% | 10 | 5.7% | -6 | n.a. | -7 | n.a. |
| Others & Cons. Adjustments | -68 | n.a. | -62 | n.a. | -70 | n.a. | -64 | n.a. |
| JM Consolidated | 1,144 | 7.5% | 1,029 | 7.3% | 840 | 5.5% | 731 | 5.1% |
NET FINANCIAL COSTS
| IFRS16 | Excl. IFRS16 | ||||
|---|---|---|---|---|---|
| (Million Euro) | 9M 21 | 9M 20 | 9M 21 | 9M 20 | |
| Net Interest | -13 | -15 | -13 | -15 | |
| Interests on Capitalised Operating Leases | -96 | -95 | - | - | |
| Exchange Differences | -7 | -25 | -3 | -5 | |
| Others | -3 | -5 | -3 | -5 | |
| Net Financial Costs | -119 | -140 | -19 | -25 |
SALES BREAKDOWN
| (Million Euro) | 9M 21 | 9M 20 | ∆ % | Q3 21 | Q3 20 | ∆ % | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| % total | % total | excl. FX | Euro | % total | % total | excl. FX | Euro | |||||
| Biedronka | 10,630 | 69.9% | 9,909 | 69.8% | 10.3% | 7.3% | 3,649 | 68.8% | 3,374 | 69.1% | 11.2% | 8.1% |
| Pingo Doce | 2,956 | 19.4% | 2,844 | 20.0% | 3.9% | 1,034 | 19.5% | 1,006 | 20.6% | 2.7% | ||
| Recheio | 660 | 4.3% | 639 | 4.5% | 3.2% | 262 | 4.9% | 240 | 4.9% | 9.3% | ||
| Ara | 758 | 5.0% | 615 | 4.3% | 31.6% | 23.1% | 284 | 5.4% | 192 | 3.9% | 53.6% | 47.7% |
| Hebe | 194 | 1.3% | 180 | 1.3% | 10.8% | 7.8% | 71 | 1.3% | 65 | 1.3% | 11.6% | 8.5% |
| Others & Cons. Adjustments | 9 | 0.1% | 10 | 0.1% | -11.3% | 4 | 0.1% | 4 | 0.1% | 2.1% | ||
| Total JM | 15,206 | 100% | 14,198 | 100% | 9.6% | 7.1% | 5,304 | 100% | 4,881 | 100% | 11.1% | 8.7% |
SALES GROWTH
| Total Sales Growth | LFL Growth | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 21 | Q2 21 | H1 21 | Q3 21 | 9M 21 | Q1 21 | Q2 21 | H1 21 | Q3 21 | 9M 21 | |||
| Biedronka | ||||||||||||
| Euro | 3.9% | 9.8% | 6.8% | 8.1% | 7.3% | |||||||
| PLN | 9.2% | 10.4% | 9.8% | 11.2% | 10.3% | 6.5% | 8.8% | 7.7% | 8.1% | 7.8% | ||
| Hebe | ||||||||||||
| Euro | -10.9% | 30.4% | 7.3% | 8.5% | 7.8% | |||||||
| PLN | -6.3% | 30.5% | 10.4% | 11.6% | 10.8% | 0.1% | 38.2% | 17.7% | 9.0% | 14.4% | ||
| Pingo Doce | -0.8% | 10.1% | 4.6% | 2.7% | 3.9% | -2.7% | 8.1% | 2.6% | 1.2% | 2.1% | ||
| Excl. Fuel | 0.3% | 9.4% | 4.8% | 2.5% | 4.0% | -1.6% | 7.3% | 2.8% | 1.0% | 2.1% | ||
| Recheio | -19.0% | 21.1% | -0.4% | 9.3% | 3.2% | -19.3% | 21.1% | -0.6% | 9.5% | 3.2% | ||
| Ara | ||||||||||||
| Euro | 0.6% | 26.1% | 11.9% | 47.7% | 23.1% | |||||||
| COP | 10.5% | 32.8% | 20.9% | 53.6% | 31.6% | 3.7% | 22.8% | 12.6% | 39.5% | 21.5% | ||
| Total JM | ||||||||||||
| Euro | 1.5% | 11.2% | 6.3% | 8.7% | 7.1% | |||||||
| Excl. FX | 5.7% | 12.0% | 8.8% | 11.1% | 9.6% | 3.2% | 10.1% | 6.6% | 8.1% | 7.1% |
STORE NETWORK
| Number of Stores | 2020 | Openings | Closings | 9M 21 | 9M 20 | ||
|---|---|---|---|---|---|---|---|
| Q1 21 | Q2 21 | Q3 21 | 9M 21 | ||||
| Biedronka | 3,115 | 21 | 32 | 22 | 16 | 3,174 | 3,047 |
| Hebe | 266 | 2 | 5 | 11 | 0 | 284 | 256 |
| Pingo Doce | 453 | 2 | 1 | 3 | 1 | 458 | 450 |
| Recheio | 42 | 0 | 0 | 0 | 0 | 42 | 42 |
| Ara | 663 | 26 | 15 | 23 | 0 | 727 | 641 |
| Sales Area (sqm) | 2020 | Openings | Closings / 9M 21 Remodellings |
9M 20 | |||
|---|---|---|---|---|---|---|---|
| Q1 21 | Q2 21 | Q3 21 | 9M 21 | ||||
| Biedronka | 2,120,337 | 15,233 | 22,566 | 14,993 | -7,391 | 2,180,520 | 2,064,673 |
| Hebe | 69,338 | 515 | 1,184 | 2,694 | 166 | 73,565 | 66,960 |
| Pingo Doce | 523,136 | 1,450 | 125 | 1,279 | -1,310 | 527,300 | 519,641 |
| Recheio | 133,928 | 0 | 0 | 0 | -393 | 134,321 | 133,826 |
| Ara | 223,818 | 8,470 | 5,260 | 8,571 | 0 | 246,119 | 216,340 |
CAPEX
| (Million Euro) | 9M 21 | Weight | 9M 20 | Weight |
|---|---|---|---|---|
| Biedronka | 239 | 66% | 141 | 55% |
| Distribution Portugal | 67 | 18% | 71 | 28% |
| Ara | 33 | 9% | 16 | 6% |
| Others | 26 | 7% | 30 | 12% |
| Total CAPEX | 364 | 100% | 258 | 100% |
2. Notes
Like For Like (LFL) sales: sales made by stores and e-commerce platforms that operated under the same conditions in the two periods. Excludes stores opened or closed in one of the two periods. Sales of stores that underwent profound remodelling are excluded for the remodelling period (store closure).
3. Reconciliation notes
INCOME SATEMENT
Following ESMA guidelines on Alternative Performance Measures from October 2015
| notes |
|---|
| Income Statement in this release (Management View) |
Consolidated Income Statement by Functions (in Consolidated Financial Statements) First Nine Months 2021 Results |
|---|---|
| Net Sales and Services | Net sales and services |
| Gross Profit | Gross profit |
| Operating Costs | Includes headings of Distribution costs; Administrative costs and Other operating costs, excluding the amount of €-556.1 mn related with Depreciations and amortisations (note - Segments Reporting) |
| EBITDA | |
| Depreciation | Value reflected in the note - Segments Reporting |
| EBIT | |
| Net Financial Costs | Net financial costs |
| Gains in Joint Ventures and Associates |
Gains (losses) in joint ventures and associates |
| Other Profits/Losses | Includes headings of Other operating profits/losses; Gains/Losses in disposal of business (when applicable) and Gains/Losses in other investments (when applicable) |
| EBT | Profit before taxes |
| Income Tax | Income tax |
| Net Profit | Profit before non-controlling interests |
| Non-Controlling Interests | Non-Controlling interests |
Net Profit Attributable to JM Net profit attributable to Jerónimo Martins Shareholders
BALANCE SHEET
| Following ESMA guidelines on Alternative Performance Measures from October 2015 | |||
|---|---|---|---|
| Balance Sheet in this release |
Consolidated Balance Sheet (in Consolidated Financial Statements) |
|---|---|
| First Nine Months 2021 Results | |
| Net Goodwill | Amount reflected in the heading of Intangible assets |
| Net Fixed Assets | Includes the headings Tangible and Intangible assets (excluding the Net goodwill - €616.3 mn) and adding the Financial leases amount (€25.7 mn) |
| Net Rights of Use (RoU) | Includes the heading of Net rights of use excluding the Financial leases (€25.7 mn) |
| Total Working Capital | Includes the headings Current trade debtors, Accrued income and Deferred costs; Inventories; Biological assets; Trade creditors, Accrued costs and Deferred income; Employee benefits; and also, the value of €-14.0 mn related to 'Others' due to its operational nature. Excludes the amount €-2.8 mn related with Interest accruals and deferrals heading (note - Net financial debt) and, when applicable, dividends attributable to non-controlling interests |
| Others | Includes the headings Investment property; Investments in joint ventures and associates; Other financial investments; Non-Current trade debtors, Accrued income and Deferred costs; Deferred tax assets and liabilities; Income tax receivable and payable; Provisions for risks and contingencies and, when applicable, dividends attributable to non-controlling interests. Excludes the value of €-14.0 mn related to 'Others' due to its operational nature, as well as, when applicable, Collateral deposits associated with financial debt (note - Debtors, accruals and deferrals) |
| Invested Capital | |
| Total Borrowings | Includes the heading Borrowings current and non-current |
| Financial Leases | Includes the heading of Financial leases (2021: €19.9 mn; 2020: €11.5 mn) according with IAS 17 in place before IFRS16 adoption |
| Capitalised Operating Leases | Amount in the heading of Lease liabilities current and non current, excluding Financial leases (note above) |
| Accrued Interest | Includes the heading Derivative financial instruments as well as the amount €-2.8 mn related with Interest accruals and deferrals (note - Net financial debt) |
| Cash and Cash Equivalents | Includes the heading Cash and cash equivalents, as well as, when applicable, Collateral deposits associated with financial debt (note - Debtors, accruals and deferrals) |
| Net Debt | |
| Non-Controlling Interests | Non-Controlling interests |
| Share Capital | Share capital |
| Reserves and Retained Earnings |
Includes the heading Share premium, Own shares, Other reserves and Retained earnings |
Shareholders' Funds
CASH FLOW
Following ESMA guidelines on Alternative Performance Measures from October 2015
| Cash Flow in this release |
Consolidated Cash Flow Statement (in Consolidated Financial Statements) First Nine Months 2021 Results |
|---|---|
| EBITDA | Includes the headings Cash generated from operations before changes in working capital, including headings which did not generate cash flow, and excluding profit and losses that do not have operational nature (€5.7 mn) |
| Capitalised Operating Leases Payment |
Included in the heading Leases paid, excluding the amount of €7.9 mn related with the payment of financial leases according with previous accounting standards |
| Interest Payment | Includes the headings of Loans interest paid, Leases interest paid and Interest received |
| Income Tax | Income tax paid |
| Funds from Operations | |
| Capex Payment | Includes the headings Disposal of tangible and intangible assets; Disposal of financial and investment property; Acquisition of tangible and intangible assets; Acquisition of financial investments and investment property. It also includes acquisitions of tangible assets classified as finance leases under previous accounting standards (€16.5 mn) |
| Change in Working Capital | Includes Changes in working capital added from headings which did not generate cash flow |
| Others | Includes the headings disposal of business (when applicable), profit and losses which generated cash flow, although not having operational nature, in the amount of €-5.7 mn |
| Cash Flow | Corresponds to the Net changes in cash and cash equivalents, deducted from Dividends paid and received, Net change in loans and change in Collateral deposits associated to financial debt. It also includes acquisitions of tangible assets classified as finance leases (€16.5 mn) and deducted from the payment of financial leases (€7.9 mn), both according with previous accounting standards |