The Jeronimo Martins Group, which owns, among others, Biedronka stores, had EUR 202 million of net profit of the parent company in the third quarter of 2023, compared to EUR 157 million of profit a year earlier, the company said in a report.
Revenues increased by 22 percent during this period. up to approximately EUR 7.938 million. EBITDA amounted to EUR 586 million, which means an increase of 18%. rdr.
After nine months of 2023, the group’s EBITDA increased by 18%. y/y to EUR 1,591 million with revenues of EUR 22,451 million (an increase of 22.1% y/y). The net profit of the parent company amounted to EUR 558 million (an increase of 33.3% y/y).
The EBITDA margin after the third quarter of 2023 decreased to 7.1%. with 7.3 percent a year before.
One billion euros for investments
The company announced in the report that it persists inflation costs may continue to put pressure on the EBITDA margin.
“All banners focus on competitiveness and sales volume with the aim of increasing EBITDA, however, persistent cost inflation may continue to put pressure on EBITDA margin (as a percentage of sales). We are committed to our long-term goals and stand by all plans presented previously for each of our businesses and our intention to prioritize investment,” the report said.
LFL sales increased by 17.8%. after 9 months. As reported, strong sales growth resulted in an EBITDA increase of 20.9%. (+18.4% in local currency). Price investment and cost inflation reduced the EBITDA margin to 8.6%. (8.8% after the third quarter of 2022).
The CAPEX of the Jeronimo Martins Group after the third quarter of 2023 amounted to EUR 790 million compared to EUR 557 million a year earlier, of which expenditures in Biedronka reached EUR 344 million.
The company maintained that this year’s investment expenditures may be similar to last year and may amount to approximately EUR 1 billion (approx. 45% of which in Poland).
Biedronka – number of stores
During the first nine months of the year, Biedronka opened 92 stores (78 net openings) and remodeled 270 locations. At the end of September, the chain had 3,473 stores.
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