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Research Tree provides access to ongoing research coverage, media content and regulatory news on JERONIMO MARTINS. We currently have 9 research reports from 1 professional analysts.
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Roughly in line with our expectations
23 Feb 17
JM announced FY 16 net result of €593m, of which €232m related to the Moterrorio disposal as exceptional items. The EBITDA margin increased to 5.9%, boosted by the good resilience of Biedronka’s profitability. The cash flow situation improved, leading to a negative net debt. Thanks to stronger cash flow generation, the company proposed a €0.60 dividend per share (flat compared to last year, including the distribution of free reserves of €0.375 per share).
Biedronka delivers a strong Q4
17 Jan 17
Jeronimo Martins’ sales experienced a 6.5% increase over the year, backed by a good performance in the last quarter. Biedronka, the Polish business, remains the group’s key growth driver. In fact, Polish sales came in at €9,781m following 10.5% growth over Q4. Sales in the Portuguese operations through Pingo Doce and Recheio increased by 3.7% and 7.1%, respectively, accounting for c.30% of the group’s top-line.
Lower than expected margin
24 Oct 16
Jeronimo Martins released strong Q3 sales growth leading to a 5.5% rise over the last nine months. Total sales reached €10,738m and EBITDA stood at €626,9m, i.e. an EBITDA margin at 5.8%, flat compared to 2015. The 9M net result came in at €501.6m, including gains from the Monterroio disposal for €224m. Adjusted net profit amounted to €266m, 5.6% yoy, boosted by a lower cost of debt. Biedronka remains the main driver for both the group’s top-line and profitability which offset a slight decrease in the Polish business margin (10bp). The underperformance of Ara and Hebe is more pronounced this year due to Ara’s network expansion (expected to be above 2015’s level). Despite the substantial capex, JM continues to enjoy a solid balance sheet with a lower debt burden (reaching €326m vs. €658m in 2015).
Worries about new tax dampened
21 Sep 16
Yesterday, the European Commission announced through a press release that it has opened an in-depth investigation into Poland’s tax on the retail sector. The European Commission has also issued an injunction, requiring Poland to suspend the application of the tax until the Commission has concluded its assessment. It is worth noting that Poland adopted, in July 2016, a new tax to be applied to retail companies operating in Poland. The tax entered into force on 1 September 2016, and no payments are due yet.
Successful focus on the top-line
29 Jul 16
H1 sales reached €6,958m backed by the performance of all banners despite deflation in Poland and flat food inflation in Portugal. Biedronka experienced strong lfl growth of 8.8% and sales came in at €4,678m. The network expansion sustained this performance as 40 stores were opened while 94 locations were refurbished. In Portugal, Pingo Doce’s sales increased by 3.9% and 0.3% on a lfl basis, reflecting the still negative basket inflation. In the first six months of this year, Pingo Doce opened five new stores bringing the total number of stores to 404.
Worries on the new Portuguese tax
03 May 16
A good first quarter for JM in which sales experienced a 5.9% increase to €3.4bn. The group’s EBITDA progressed well following the good sales performance, strict cost management and with Easter falling in Q1 16. The net result stood at €77m (vs. €65m in Q1 15) due to lower cost of debt (sound financial profile with gearing at 12.7%). The group continued to spend on capex, €83.4m in the quarter, i.e. 14% of planning capex for FY 16.
15 Jan 15
Booker has announced a Q3 IMS with trading in line with our expectations. LFL sales growth increased 2.5%, with tobacco sales up 2.4% (a significant improvement on the last quarter) with non-tobacco sales increasing 2.6%. The turnaround of Makro continues and non-tobacco sales declined by 6.5% as Booker exit’s unprofitable lines, whilst 9 Makro stores have converted into a new, improved format. The outlook for profits and net cash for the year remains in line with management’s expectations. Following today update we leave our 2015 forecasts unchanged. We retain our Hold recommendation and 150p target price.
N+1 Singer - Conviviality - Delivering against strategy
30 Jan 17
Interims are robust and broadly in line with our expectations. The 4.4% LFL sales growth and positive KPI’s on customer wins and higher spend per outlet demonstrate that the strategy is working. H2 has started very well with good momentum across all 3 divisions as the new MD’s begin to have a positive impact. With PBT 2/3rd H2-biased we make no major forecast changes but see the risk on the upside. The shares are up 21% YTD but given the positive overall tenor and valuation read-across from the Booker/Tesco deal (24.5x P/E), CVR remains inexpensive on a cal’17 P/E of 11.2x with a 5% DPS yield and a 3 year EPS CAGR of 24%. We stay at Buy with a 290p TP.