Jerónimo Martins, SGPS, S.A. (JRONF) Q1 2023 Earnings Call Transcript

Jerónimo Martins, SGPS, S.A. (OTCPK:JRONF) Q1 2023 Outcomes Convention Name April 27, 2023 4:00 AM ET

Firm Members

Ana Luisa Virginia – CFO

Convention Name Members

Joao Pinto – JB Capital

William Woods – Bernstein

Jose Rito – CaixaBank

Nick Coulter – Citi

Nicolas Champ – Barclays

Ana Luisa Virginia

Good morning, women and gents and thanks for becoming a member of this name to Current First Quarter 2023 Outcomes. In our company web site assessed supplies is accessible. Comprising the discharge, a slide presentation and impact sheet.

Q1 figures certainly mirror a superb begin to the yr. All banners leveraged the robust aggressive positions held at year-end to proceed fueling development in 1 / 4 when meals inflation stays a key characteristic of the efficiency. With shoppers progressively extra pressured, our strategic focus stays unchanged with worth competitiveness because the crucial software to drive development, shield volumes and mitigate as a lot as doable buying and selling down results.

The end result of this strategic possibility was notably exceptional in Poland, the place regardless of the challenges Biedronka delivered an impressive efficiency. Group gross sales grew by 23.4% to succeed in €6.8 billion. And you will need to flag that forex devaluation was a headwind to development. At fixed trade charges, group gross sales grew by 26.5%. The robust gross sales efficiency led EBITDA to develop by 20.1% to succeed in €446 million. EBITDA margin declined 18 foundation factors to six.6%. Money movement era was adverse in €226 million, displays seasonal working capital outflow of the enterprise within the first quarter.

Our monetary state of affairs stays extraordinarily stable. By the top of March, internet money place excluding capitalized working leases, was at €1 billion. We entered 2023 with persistent excessive meals inflation additionally reflecting the comps as inflation accelerated in Poland and Portugal from Q2 2022 onwards, when the struggle exacerbated the strain on meals and power costs.

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