The Jeronimo Martins Group, the owner of, among others, Biedronka stores, had a net profit of EUR 156 million in the second quarter of 2024, compared to EUR 217 million in the previous year, the company reported in a report.
Revenues increased by 6.8% in the period to around EUR 8.23 billion. EBITDA amounted to EUR 532 million, down 4.8% year-on-year.
EBITDA is net profit plus financial costs, tax costs and depreciation costs for both intangible assets and legal assets. fixed assets.
Biedronka owner's results
In the entire first half of 2024, the group's EBITDA increased by 3.5% y/y to EUR 1,040 million on revenues of EUR 16.3 billion (an increase of 12.3% y/y). The net profit of the parent company amounted to EUR 253 million (a decrease of 29.1% y/y).
“Despite the lack of clarity on future consumer behavior in the countries where we operate, we expect food deflation and high cost inflation to persist in the second half of the year,” Jeronimo Martins CEO Pedro Soares dos Santos said in a statement.
He added that the chain will want to be the first choice for customers. The goal is also to increase sales volumes to remain competitive, increase the customer base and market share.
The Biedronka chain's revenues amounted to EUR 11.5 billion in the first half of the year, which means an increase in domestic currency by 4.5% y/y. In the second quarter, they amounted to EUR 5.8 billion, which means an increase in domestic currency by 0.1%. LFL sales fell by 0.2% in the first half of the year and fell by 4.6% in the second quarter.
“In an increasingly competitive context, where price is the decisive purchasing factor, Biedronka will maintain its price leadership position and prioritize sales growth in volume terms. Therefore, upon entering the second half of the year, which will be more demanding in terms of volumes, Biedronka will increase its investment in prices, strengthening its competitive position (…)” – the report reads.
As indicated, at deflation basket, the implementation of this strategy will continue to put pressure on the EBITDA margin. “This pressure may be higher in the second half of the year than in the first,” the company said.
New locations and renovations
As reported, Biedronka plans to add 130 to 150 locations to the network. The renovation program will cover about 275 stores.
In the first half of the year, Biedronka opened 60 stores and modernized 104 outlets.
At the end of June, the chain had 3,620 stores.
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