Jeronimo Martins has announced a stronger than expected closure to FY21. The adjusted net income was 2.7% ahead of the street consensus. However, the stock price slipped c.4% due to a softer than expected gross dividend and FY22 outlook (for capex and margin pressure on Biedronka). We believe the headwinds are non-structural in nature and JM remains a healthy entity. We will tweak the financial estimates slightly and maintain the stock recommendation.
10 Mar 2022
Better closure to FY21 but outlook is unimpressive
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Better closure to FY21 but outlook is unimpressive
- Published:
10 Mar 2022 -
Author:
Nishant Choudhary -
Pages:
3
Jeronimo Martins has announced a stronger than expected closure to FY21. The adjusted net income was 2.7% ahead of the street consensus. However, the stock price slipped c.4% due to a softer than expected gross dividend and FY22 outlook (for capex and margin pressure on Biedronka). We believe the headwinds are non-structural in nature and JM remains a healthy entity. We will tweak the financial estimates slightly and maintain the stock recommendation.