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Jeronimo Martins — Interim / Quarterly Report 2022
Jul 26, 2022
1906_iss_2022-07-26_4140afe4-bd7e-4780-b507-9cf3ed7706e8.pdf
Interim / Quarterly Report
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RELEASE
FIRST HALF
ADDITIONAL INFORMATION RELATING TO THE PERIOD HERE
FINANCIAL CALENDAR
9M 2022 Results: 26 October 2022
This release includes, in Appendix 1, for comparison purposes, the Financial Statements excluding the effect of the IFRS16.
INVESTOR RELATIONS OFFICE
[email protected] Cláudia Falcão [email protected]
Hugo Fernandes [email protected]
MEDIA RELATIONS OFFICE +351 21 752 61 80 [email protected] Rita Fragoso [email protected] Nuno Abreu [email protected]
Jerónimo Martins, SGPS, S.A. | Head office: Rua Actor António Silva, n. º7, 1649-033 Lisbon
COMPETITIVENESS DRIVES GOOD PERFORMANCE OF SALES AND PROFITS IN A CONTEXT OF MOUNTING INFLATION
H1 I KEY FIGURES
PERFORMANCE OVERVIEW & KEY DRIVERS
In a context of increasing generalized price rises, intensified in Q2, the Group's banners showed an impressive ability to implement measures that limited food inflation's adverse impact on our consumers.
All Group Companies reinforced their price competitiveness throughout the period, protecting volumes and mitigating the expected trade down. This dynamic allowed them to deliver remarkable sales growth.
In Poland, Biedronka continued to focus its commercial strategy on containing the rise in food prices. The assertiveness with which it assumed its role as an "anti-inflation shield" contributed decisively to the 21.3% increase in local-currency sales (+26.9% in Q2).
Relative to H1 21, Hebe benefited from the lifting of all restrictions related to the pandemic and grew local-currency sales by 34.7% (+40.4% in Q2). Despite changing consumer behaviour, online sales continued to gain relevance and represented 14.6% of the total.
In Portugal, Pingo Doce focused on offering saving opportunities to its consumers and grew sales by 8.5% (+10.9% in Q2). Recheio benefited from the tourism recovery, registering a notable top-line growth of 28.9% (+26.8% in Q2).
In Colombia, food inflation remained above 20%, pressuring consumers to trade down. Ara invested in prices, turning challenging circumstances into an opportunity to strengthen its market position and its consumer recognition. As a result, sales grew by a remarkable 70.1% in local currency in the first six months of the year (+74.9% in Q2).
Our focus on competitiveness and volume protection drove the Group's EBITDA to grow 19.1% vs. H1 21. EBITDA margin was 7.2%, in line with the same period in the previous year. In Q2, the EBITDA margin was 7.5% vs. 7.7% in Q2 21, mainly reflecting price investments and significant cost inflation.
Amidst ongoing uncertainty, all banners delivered solid performances while strengthening their market positions.
The Balance Sheet remains solid with a net cash position (excluding capitalized operating leases liabilities) of 593 million euros at the end of June, after a dividend payment in May of 493 million euros.
Despite the pressures felt by the businesses, the Group also registered significant progress in its corporate responsibility pillars. Highlights include:
- With the release for the second consecutive year of its report "Contributing to a forest-positive future" the Group reaffirmed its policies, commitments, and progress in fighting deforestation and the creation of high-conservation value ecosystems;
- JM Agribusiness acquired a 10.1% stake in a Norwegian sustainable salmon production company. Its ambition is to develop the most sustainable and "fish-friendly" land-based aquaculture facilities in the world;
- Biedronka signed an agreement that will allow it to have, by the end of 2025, 2,000 stores equipped with photovoltaic panels;
- Pingo Doce was the main sponsor of One Sustainable Ocean, the largest official and free-access side event in the United Nations Ocean Conference that took place in Lisbon.
MESSAGE FROM THE CHAIRMAN AND CEO PEDRO SOARES DOS SANTOS
'Amidst extreme uncertainty, with high food inflation, an energy crisis without precedent in this century, and disruptions in international supply chains, the strength of our teams' performance in the first six months of the year is undeniable. This excellent performance reflects the success of our strategic commitment to defend competitiveness in all Group Companies, the resilience of their supply chains, and the efficiency of their business models.
Our banners maintained the quality of their value propositions and have reinforced their commercial assertiveness and margin investments to mitigate the sharp increase in food prices and its effects on consumer behaviour.
Despite a further decrease in Polish consumer confidence, food demand in Poland remained resilient. In Portugal and Colombia, generalized inflation has had a more immediate impact on consumption.
Meanwhile the energy crisis is driving ongoing, significant hikes in electricity and transport costs that require an increased focus from the teams on the rigorous management of productivity and efficiency. This situation advises prudence when considering the evolution of inflation in general and its socio-economic consequences.
In this context and in line with our long-term vision, we will keep the competitiveness and efficiency of our models as our main priorities.
I believe that the first half results confirm the ability of our teams to navigate turbulent waters and to make the necessary decisions to create shared value and achieve our vision of profitable, sustainable growth. This ability is even more critical on the verge of a new economic and geopolitical order that will reshape global supply chains and consumption patterns.'
OUTLOOK 2022
There is significant uncertainty associated with the developments of the war in Ukraine and the Covid-19 pandemic impacts on global supply chains.
Since the beginning of the military conflict, there has been a further escalation of inflationary pressures on food, energy, and transport, which is expected to be more pronounced in the second half of the year. In addition, the volatility of Eastern European and LatAm currencies has increased.
With rising food inflation and interest rates pressuring household disposable incomes and consumer confidence, it is even more critical to maintain price competitiveness and create saving opportunities through promotional activities.
The effort to contain prices will be implemented in a context where cost inflation will increase the pressure on the percent margins of our banners.
We, therefore, maintain the outlook for the year as presented on March 9, 2022, when the 2021 results were released.
PERFOMANCE ANALYSIS BY BANNER
POLAND
In Poland, food sales continued to record solid growth driven by higher inflation and volume increases. The measures implemented by the government to protect consumers from the increasing pressure over disposable income, combined with a more extensive consumer base due to the flow of Ukrainian refugees to Poland, should have contributed to this trend.
Food inflation registered a progressive increase over the six months, reaching 11.1% in H1 (13.4% in Q2).
Biedronka's commercial strategy has focused on a continuous effort to contain price increases and offer strong promotional campaigns in baskets that are relevant to the families.
In the six months, sales in local currency grew 21.3%, with LFL at 17.5%. In euros, sales reached 8.3 billion, 18.7% ahead of H1 21.
In Q2 22, the banner's competitiveness allowed for a strong performance. This delivery was also boosted by a more extensive consumer base in the Polish market and by the Easter season, which, in the prior year, took place in Q1.
In Q2 22, sales in local currency grew 26.9%, with LFL at 22.5%. In euros, sales reached 4.4 billion, 23.7% ahead of Q2 21. Higher basket inflation also contributed to top-line growth.
The reinforcement in competitiveness was key to the Company's remarkable EBITDA growth of 15.4% (+17.9% in local currency). The respective margin stood at 8.7% (8.9% in H1 21). The evolution of this margin reflects the strategy of investing in price and increasing cost inflation, in which the sharp rise in the price of electricity and fuel stands out.
Following its investment programme, Biedronka opened 40 stores in H1 (33 net additions) and remodelled 127 locations.
Hebe recorded a strong recovery in sales compared to H1 21, which had been impacted by pandemic-related restrictions.
In local currency, the banner grew sales by 34.7%, with LFL at 26.9%.
In euros, sales reached 163 million, 31.8% above H1 21.
In Q2 22, sales grew by 40.4% (+36.9% in euros) with LFL at 32.2%.
The good sales performance led EBITDA to reach 10 million euros versus 5 million euros in H1 21. The respective margin increased from 4.4% in H1 21 to 6.3% in H1 22.
Hebe opened eight stores in the period (five net additions).
PORTUGAL
In Portugal, the generalized rise in prices put pressure on consumption and led to trading down in the food sector and to an increase in the weight of private brands on sales. On the other hand, the strong recovery in tourism underpinned the good performance of the HoReCa sector in the first half of the year.
Food inflation increased over the period and stood at 8.6% in the first half (11.9% in Q2).
Pingo Doce LFL (excl. fuel)
Recheio LFL
Pingo Doce maintained the intensity of its commercial actions in a context of greater pressure on disposable incomes.
The banner's sales grew 8.5% (+10.9% in Q2) to reach 2.1 billion euros, with LFL, excluding fuel, at 6.5% (+9.3% in Q2). Inflation in the basket was also an element of performance.
EBITDA was 120 million euros, 7.8% above H1 21. The respective margin was 5.8%, in line with the previous year.
In the period, Pingo Doce opened three new stores, having closed one location.
Recheio was well prepared to benefit from the HoReCa channel recovery. As a result, our wholesale company posted strong sales growth against the same period of the previous year, which was affected by pandemic-related restrictions on the HoReCa channel and low tourism activity.
The banner's sales reached 513 million euros, 28.9% above H1 21 (+26.8% in Q2), with LFL at 29.3% (+27.0% in Q2).
Recheio's EBITDA amounted to 24 million euros, 61.1% above H1 21. The respective margin was 4.6% (versus 3.7% in H1 21), with strong sales growth allowing the recovery of operating leverage.
COLOMBIA
In Colombia, the sharp increase in food prices, with the respective inflation at 23.3% (23.8% in Q2), continued to impact consumer behaviour and led to trading down in the food basket.
In a particularly challenging context for Colombian families, Ara continued to reinforce its low-price proposal and offered relevant promotions as a way to gain even more relevance to consumers.
As a result of this strategy, local-currency sales grew by 70.1% in the first six months, including LFL of 44.3%. Inflation and a base of comparison that was adversely impacted by the pandemic also contributed to the performance.
In euros, sales reached 824 million, 74.1% above H1 21.
In Q2 22, sales grew by 74.9% (+86.8% in euros) with LFL of 48.9%.
Sales growth led to an improvement of the banner's EBITDA margin from 1.3% in H1 21 to 3.1% in H1 22. EBITDA amounted to 26 million euros (versus 6 million euros in H1 21).
Ara opened 57 stores in the period (56 net additions).
CONSOLIDATED FINANCIAL HEADINGS
Net Financial Expenses were -85 million euros versus -74 million euros in H1 21. These costs include the recognition of currency translation losses of -6 million euros, related to value adjustments of operating lease liabilities capitalized in Poland denominated in euros (+3 million euros in H1 21).
Other Gains and Losses amounted to -25 million euros, including donations, indemnities, and provisions increases for various contingencies.
The Investment Programme reached 318 million euros in the period, of which 51% were channelled to Biedronka.
KEY PERFOMANCE FIGURES
CONSOLIDATED RESULTS
| (€ Million) | H1 22 | H1 21 | D | Q2 22 | Q2 21 | D | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales and Services | 11,883 | 9,902 | 20.0% | 6,370 | 5,116 | 24.5% | ||||
| Gross Profit | 2,507 | 21.1% | 2,133 | 21.5% | 17.5% | 1,323 | 20.8% | 1,104 | 21.6% | 19.8% |
| Operating Costs | -1,656 -13.9% | -1,419 -14.3% | 16.7% | -843 -13.2% | -711 -13.9% | 18.6% | ||||
| EBITDA | 851 | 7.2% | 715 | 7.2% | 19.1% | 479 | 7.5% | 393 | 7.7% | 22.0% |
| Depreciation | -385 | -3.2% | -371 | -3.7% | 3.8% | -195 | -3.1% | -186 | -3.6% | 4.8% |
| EBIT | 466 | 3.9% | 343 | 3.5% | 35.6% | 284 | 4.5% | 206 | 4.0% | 37.6% |
| Net Financial Costs | -85 | -0.7% | -74 | -0.7% | 15.1% | -40 | -0.6% | -30 | -0.6% | 35.0% |
| 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 | -25 | -0.2% | -6 | -0.1% | n.a. | -12 | -0.2% | -3 | -0.1% | n.a. |
| EBT | 356 | 3.0% | 264 | 2.7% | 34.9% | 232 | 3.6% | 174 | 3.4% | 33.3% |
| Income Tax | -85 | -0.7% | -70 | -0.7% | 22.3% | -54 | -0.8% | -41 | -0.8% | 30.0% |
| Net Profit | 270 | 2.3% | 194 | 2.0% | 39.4% | 178 | 2.8% | 133 | 2.6% | 34.3% |
| Non-Controlling Interests | -9 | -0.1% | -8 | -0.1% | 17.8% | -5 | -0.1% | -4 | -0.1% | 18.1% |
| Net Profit Attributable to JM | 261 | 2.2% | 186 | 1.9% | 40.3% | 173 | 2.7% | 129 | 2.5% | 34.8% |
| EPS (€) | 0.42 | 0.30 | 40.3% | 0.28 | 0.20 | 34.8% | ||||
| EPS without Other Profits/Losses (€) | 0.45 | 0.30 | 48.2% | 0.29 | 0.21 | 40.3% |
BALANCE SHEET
| (€ Million) | H1 22 | 2021 | H1 21 |
|---|---|---|---|
| Net Goodwill | 612 | 618 | 623 |
| Net Fixed Assets | 4,207 | 4,159 | 3,943 |
| Net Rights of Use (RoU) | 2,280 | 2,221 | 2,176 |
| Total Working Capital | -3,175 | -3,290 | -2,770 |
| Others | 185 | 145 | 178 |
| Invested Capital | 4,109 | 3,852 | 4,149 |
| Total Borrowings | 470 | 460 | 507 |
| Financial Leases | 38 | 22 | 19 |
| Capitalised Operating Leases | 2,444 | 2,365 | 2,299 |
| Accrued Interest | 1 | 0 | 0 |
| Cash and Cash Equivalents | -1,101 | -1,527 | -933 |
| Net Debt | 1,851 | 1,320 | 1,892 |
| Non-Controlling Interests | 245 | 254 | 240 |
| Share Capital | 629 | 629 | 629 |
| Reserves and Retained Earnings | 1,383 | 1,649 | 1,388 |
| Shareholders Funds | 2,258 | 2,532 | 2,257 |
CASH FLOW
| (€ Million) | H1 22 | H1 21 |
|---|---|---|
| EBITDA | 851 | 715 |
| Capitalised Operating Leases Payment | -148 | -138 |
| Interest Payment | -77 | -75 |
| Other Financial Items | 0 | 0 |
| Income Tax | -106 | -110 |
| Funds From Operations | 520 | 392 |
| Capex Payment | -405 | -252 |
| Change in Working Capital | 5 | -53 |
| Others | -24 | -4 |
| Cash Flow | 97 | 82 |
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 and more recently due to the war in Ukraine, 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.
Unless required by applicable law or regulation, Jerónimo Martins assumes no obligation to update the information contained in this release or notify a reader if any matter stated herein changes or becomes inaccurate.
APPENDIX INCOME STATEMENT BY FUNCTIONS
- Financial Statements
H1 22 H1 21 H1 22 H1 21 Net Sales and Services 11,883 9,902 11,883 9,902 Cost of Sales -9,377 -7,769 -9,377 -7,769 Gross Profit 2,507 2,133 2,507 2,133 Distribution Costs -1,843 -1,617 -1,894 -1,661 Administrative Costs -198 -173 -199 -174 Other Operating Profits/Losses -25 -6 -25 -6 Operating Profit 441 338 389 293 Net Financial Costs -85 -74 -12 -13 Gains/Losses in Other Investments 0 0 0 0 Gains in Joint Ventures and Associates 0 0 0 0 Profit Before Taxes 356 264 377 280 Income Tax -85 -70 -89 -72 Profit Before Non Controlling Interests 270 194 288 208 Non-Controlling Interests -9 -8 -10 -9 Net Profit Attributable to JM 261 186 278 199 IFRS16 (€ Million) Excl. IFRS16
INCOME STATEMENT (Management View)
| (€ Million) | (Excl. IFRS16) | (Excl. IFRS16) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| H1 22 | H1 21 | D | Q2 22 Q2 21 |
D | ||||||
| Net Sales and Services | 11,883 | 9,902 | 20.0% | 6,370 | 5,116 | 24.5% | ||||
| Gross Profit | 2,507 | 21.1% | 2,133 | 21.5% | 17.5% | 1,323 | 20.8% | 1,104 | 21.6% | 19.8% |
| Operating Costs | -1,871 | -15.7% | -1,621 | -16.4% | 15.5% | -953 | -15.0% | -813 | -15.9% | 17.2% |
| EBITDA | 635 | 5.3% | 513 | 5.2% | 23.9% | 370 | 5.8% | 291 | 5.7% | 27.0% |
| Depreciation | -222 | -1.9% | -214 | -2.2% | 3.5% | -112 | -1.8% | -108 | -2.1% | 4.0% |
| EBIT | 414 | 3.5% | 299 | 3.0% | 38.5% | 258 | 4.1% | 184 | 3.6% | 40.4% |
| Net Financial Costs | -12 | -0.1% | -13 | -0.1% | -8.1% | -3 | 0.0% | -6 | -0.1% | -54.9% |
| 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 | -25 | -0.2% | -6 | -0.1% | n.a. | -12 | -0.2% | -3 | -0.1% | n.a. |
| EBT | 377 | 3.2% | 280 | 2.8% | 34.6% | 243 | 3.8% | 174 | 3.4% | 39.3% |
| Income Tax | -89 | -0.7% | -72 | -0.7% | 22.6% | -55 | -0.9% | -41 | -0.8% | 33.6% |
| Net Profit | 288 | 2.4% | 208 | 2.1% | 38.8% | 188 | 2.9% | 133 | 2.6% | 41.0% |
| Non-Controlling Interests | -10 | -0.1% | -9 | -0.1% | 13.0% | -5 | -0.1% | -5 | -0.1% | 13.9% |
| Net Profit Attributable to JM | 278 | 2.3% | 199 | 2.0% | 39.9% | 182 | 2.9% | 128 | 2.5% | 42.0% |
| EPS (€) | 0.44 | 0.32 | 39.9% | 0.29 | 0.20 | 42.0% | ||||
| EPS without Other Profits/Losses (€) | 0.47 | 0.32 | 47.4% | 0.30 | 0.21 | 47.4% |
BALANCE SHEET
| (Excl. IFRS16) | |||
|---|---|---|---|
| (€ Million) | H1 22 | 2021 | H1 21 |
| Net Goodwill | 612 | 618 | 623 |
| Net Fixed Assets | 4,207 | 4,159 | 3,943 |
| Total Working Capital | -3,170 | -3,287 | -2,765 |
| Others | 158 | 121 | 157 |
| Invested Capital | 1,807 | 1,611 | 1,958 |
| Total Borrowings | 470 | 460 | 507 |
| Financial Leases | 38 | 22 | 19 |
| Accrued Interest | 1 | 0 | 0 |
| Cash and Cash Equivalents | -1,101 | -1,527 | -933 |
| Net Debt | -593 | -1,046 | -407 |
| Non-Controlling Interests | 255 | 262 | 247 |
| Share Capital | 629 | 629 | 629 |
| Reserves and Retained Earnings | 1,516 | 1,765 | 1,488 |
| Shareholders Funds | 2,400 | 2,657 | 2,365 |
CASH FLOW
| (€ Million) | (Excl. IFRS16) | |
|---|---|---|
| H1 22 | H1 21 | |
| EBITDA | 635 | 513 |
| Interest Payment | -10 | -11 |
| Other Financial Items | 0 | 0 |
| Income Tax | -106 | -110 |
| Funds From Operations | 520 | 392 |
| Capex Payment | -405 | -252 |
| Change in Working Capital | 5 | -54 |
| Others | -23 | -3 |
| Cash Flow | 97 | 82 |
EBITDA BREAKDOWN
| IFRS16 | Excl. IFRS16 | |||||||
|---|---|---|---|---|---|---|---|---|
| (€ Million) | H1 22 | Mg | H1 21 | Mg | H1 22 | Mg | H1 21 | Mg |
| Biedronka | 721 | 8.7% | 624 | 8.9% | 574 | 6.9% | 486 | 7.0% |
| Hebe | 10 | 6.3% | 5 | 4.4% | -2 | n.a. | -6 | n.a. |
| Pingo Doce | 120 | 5.8% | 112 | 5.8% | 87 | 4.2% | 79 | 4.1% |
| Recheio | 24 | 4.6% | 15 | 3.7% | 21 | 4.1% | 12 | 3.0% |
| Ara | 26 | 3.1% | 6 | 1.3% | 5 | 0.6% | -11 | n.a. |
| Others & Cons. Adjustments | -49 | n.a. | -47 | n.a. | -51 | n.a. | -49 | n.a. |
| JM Consolidated | 851 | 7.2% | 715 | 7.2% | 635 | 5.3% | 513 | 5.2% |
NET FINANCIAL COSTS
| (€ Million) | IFRS16 | Excl. IFRS16 | |||
|---|---|---|---|---|---|
| H1 22 | H1 21 | H1 22 | H1 21 | ||
| Net Interest | -7 | -8 | -7 | -8 | |
| Interests on Capitalised Operating Leases | -67 | -64 | - | - | |
| Exchange Differences | -7 | 1 | -1 | -2 | |
| Others | -3 | -2 | -3 | -2 | |
| Net Financial Costs | -85 | -74 | -12 | -13 |
SALES BREAKDOWN
| (€ Million) | H1 22 | H1 21 | D % | Q2 22 | Q2 21 | D % | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| % total | % total | excl. FX | Euro | % total | % total | excl. FX | Euro | |||||
| Biedronka | 8,289 | 69.8% | 6,981 | 70.5% | 21.3% | 18.7% | 4,446 | 69.8% | 3,594 | 70.2% | 26.9% | 23.7% |
| Hebe | 163 | 1.4% | 123 | 1.2% | 34.7% | 31.8% | 9 1 |
1.4% | 6 6 |
1.3% | 40.4% | 36.9% |
| Pingo Doce | 2,086 | 17.6% | 1,922 | 19.4% | 8.5% | 1,102 | 17.3% | 993 | 19.4% | 10.9% | ||
| Recheio | 513 | 4.3% | 398 | 4.0% | 28.9% | 285 | 4.5% | 224 | 4.4% | 26.8% | ||
| Ara | 824 | 6.9% | 473 | 4.8% | 70.1% | 74.1% | 442 | 6.9% | 237 | 4.6% | 74.9% | 86.8% |
| Others & Cons. Adjustments | 9 | 0.1% | 4 | 0.0% | n.a. | 5 | 0.1% | 2 | 0.0% | n.a. | ||
| Total JM | 11,883 | 100% | 9,902 | 100% | 21.7% | 20.0% | 6,370 | 100% | 5,116 | 100% | 26.2% | 24.5% |
SALES GROWTH
| Total Sales Growth | LFL Growth | |||||
|---|---|---|---|---|---|---|
| Q1 22 | Q2 22 | H1 22 | Q1 22 | Q2 22 | H1 22 | |
| Biedronka | ||||||
| Euro | 13.4% | 23.7% | 18.7% | |||
| PLN | 15.4% | 26.9% | 21.3% | 12.2% | 22.5% | 17.5% |
| Hebe | ||||||
| Euro | 25.9% | 36.9% | 31.8% | |||
| PLN | 28.0% | 40.4% | 34.7% | 20.8% | 32.2% | 26.9% |
| Pingo Doce | 6.0% | 10.9% | 8.5% | 4.7% | 9.9% | 7.4% |
| Excl. Fuel | 4.8% | 10.3% | 7.7% | 3.5% | 9.3% | 6.5% |
| Recheio | 31.6% | 26.8% | 28.9% | 32.1% | 27.0% | 29.3% |
| Ara | ||||||
| Euro | 61.3% | 86.8% | 74.1% | |||
| COP | 65.0% | 74.9% | 70.1% | 39.5% | 48.9% | 44.3% |
| Total JM | ||||||
| Euro | 15.2% | 24.5% | 20.0% | |||
| Excl. FX | 16.8% | 26.2% | 21.7% | 13.0% | 21.6% | 17.5% |
STORE NETWORK
| Number of Stores | 2021 | Openings | Closings | H1 22 | H1 21 | |
|---|---|---|---|---|---|---|
| Q1 22 | Q2 22 | H1 22 | ||||
| Biedronka * | 3,250 | 1 6 |
2 4 |
7 | 3,283 | 3,154 |
| Hebe | 291 | 3 | 5 | 3 | 296 | 273 |
| Pingo Doce | 465 | 2 | 1 | 1 | 467 | 456 |
| Recheio | 4 2 |
0 | 0 | 0 | 4 2 |
4 2 |
| Ara | 819 | 1 4 |
4 3 |
1 | 875 | 704 |
| Sales Area (sqm) | 2021 | Openings | Closings Remodellings |
H1 22 | H1 21 | |
|---|---|---|---|---|---|---|
| Q1 22 | Q2 22 | H1 22 | ||||
| Biedronka * | 2,241,562 | 11,030 | 17,120 | -5,202 | 2,274,914 | 2,160,062 |
| Hebe | 75,164 | 760 | 1,193 | 761 | 76,356 | 70,871 |
| Pingo Doce | 535,847 | 2,093 | 1,000 | -1,460 | 540,400 | 526,566 |
| Recheio | 134,321 | 0 | 0 | 0 | 134,321 | 133,928 |
| Ara | 278,547 | 4,622 | 15,535 | 424 | 298,280 | 237,548 |
* Excluding the stores and selling area related to 14 Micro Fulfilment Centres (MFC) to supply Biek's operation (ultra-fast delivery)
CAPEX
| (€ Million) | H1 22 | Weight | H1 21 | Weight |
|---|---|---|---|---|
| Biedronka | 161 | 51% | 120 | 60% |
| Distribution Portugal | 95 | 30% | 43 | 21% |
| Ara | 34.2 | 11% | 19 | 9% |
| Others | 28 | 9% | 18 | 9% |
| Total CAPEX | 318 | 100% | 200 | 100% |
WORKING CAPITAL
| (€ Million) | IFRS16 | Excl. IFRS16 | |||
|---|---|---|---|---|---|
| H1 22 | H1 21 | H1 22 | H1 21 | ||
| Inventories | 1,295 | 1,038 | 1,295 | 1,038 | |
| in days of sales | 20 | 19 | 20 | 19 | |
| Customers | 37 | 38 | 37 | 38 | |
| in days of sales | 1 | 1 | 1 | 1 | |
| Suppliers | -3,781 | -3,111 | -3,781 | -3,111 | |
| in days of sales | -58 | -57 | -58 | -57 | |
| Others | -725 | -735 | -721 | -730 | |
| Total Working Capital | -3,175 | -2,770 | -3,170 | -2,765 | |
| in days of sales | -48 | -51 | -48 | -51 |
TOTAL BORROWINGS
| (€ Million) | H1 22 | H1 21 |
|---|---|---|
| Long Term Borrowings | 278 | 349 |
| as % of Total Borrowings | 59.2% | 68.9% |
| Average Maturity (years) | 5.9 | 6.3 |
| Short Term Borrowings | 191 | 158 |
| as % of Total Borrowings | 40.8% | 31.1% |
| Total Borrowings | 470 | 507 |
| Average Maturity (years) | 3.6 | 4.6 |
| % Total Borrowings in Euros | 0.0% | 0.0% |
| % Total Borrowings in Zlotys | 35.3% | 43.3% |
| % Total Borrowings in Colombian Pesos | 64.7% | 56.7% |
- Notes
Like For Like (LFL) sales: sales made by stores 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).
INCOME STATEMENT
- Reconciliation notes
Following ESMA guidelines on Alternative Performance Measures from October 2015
| Income Statement in this release (Management View) |
Consolidated Income Statement by Functions (in Consolidated Report and Accounts) First Half 2022 |
|---|---|
| Net Sales and Services | Net sales and services |
| Gross Profit | Gross profit |
| Operating Costs | Includes headings of Distribution costs; Administrative costs and Other operating profits/losses, excluding the amount of €-385 million 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 at 30 June 2022 (in Consolidated Report and Accounts) |
|---|---|
| Net Goodwill | Amount reflected in the heading of Intangible assets |
| Net Fixed Assets | Includes the headings Tangible and Intangible assets (excluding the Net goodwill of €612 million) and adding the Financial leases amount (€44 million) |
| Net Rights of Use (RoU) | Includes the heading of Net rights of use excluding the Financial leases (€44 million) |
| 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 €-20 million related to 'Others' due to its operational nature. Excludes the amount of €41 million of short-term investments that don't qualify as cash equivalents (note - Debtors, accruals and deferrals), the amount of €-1 million related with Interest accruals and deferrals heading (note - Net financial debt) |
| 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. Excludes the value of €-20 million related to 'Others' due to its operational nature |
| Invested Capital | |
| Total Borrowings | Includes the heading Borrowings current and non-current |
| Financial Leases | Includes the heading of Financial leases (2022: €38 million; 2021: €22 million) 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 (heading above) |
| Accrued Interest | Includes the headings Derivative financial instruments and when applicable, the amount of €-1 million related with Interest accruals and deferrals (note - Net financial debt) |
| Cash and Cash Equivalents | Includes the heading Cash and cash equivalents, and €41 million of Short-term investments that don't qualify as cash equivalents (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 Report and Accounts) First Half 2022 |
|---|---|
| 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 (€24 million) |
| Capitalised Operating Leases Payment |
Included in the heading Leases paid, excluding the amount of €3 million 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 (€-20 million), and excludes net change in Short-term investments that don't qualify as cash equivalents (€9 million) |
| 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 €-24 million |
| Cash Flow | Corresponds to the Net change in cash and cash equivalents, deducted from Dividends paid and received, Net change in loans, and net change in Short-term investments that don't qualify as cash (€9 million). It also includes acquisitions of tangible assets classified as finance leases (€-20 million) and deducted from the payment of financial leases (€3 million), both according with previous accounting standards |