Jeronimo Martins’ FY22 performance was slightly ahead of the street’s expectations. While the group’s EBIT and EPS were 2.5-3% ahead of consensus, the gross margin was c.11% weaker. However, inflation has been more persistent in 2023 and customers are trading down in all geographies (especially in Colombia). The company should continue to gain market share (in Biedronka and Ara), but the guidance of further erosion in the EBITDA margin is below our expectations. We will reduce our FY23 estimates ....
