Jeronimo’s Q1 performance was in line with our expectations. However, we see some chinks in the armour considering revenue came under pressure in April, especially in the Portuguese retail banner Pingo Doce. The EBITDA margin’s erosion is not a structural issue, however. The reduction of the dividend and withdrawal of FY20 guidance has also added to investors’ discomfort.
15 May 2020
Chinks in the armour, despite strong Q1
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Chinks in the armour, despite strong Q1
Jeronimo Martins, SGPS S.A. (JEM:FRA) | 0 0 0.5% | Mkt Cap: 11,076m
- Published:
15 May 2020 -
Author:
Nishant Choudhary -
Pages:
3
Jeronimo’s Q1 performance was in line with our expectations. However, we see some chinks in the armour considering revenue came under pressure in April, especially in the Portuguese retail banner Pingo Doce. The EBITDA margin’s erosion is not a structural issue, however. The reduction of the dividend and withdrawal of FY20 guidance has also added to investors’ discomfort.