Jeronimo falls as Biedronka misses expectations

Jeronimo Martins SGPS SA

12/01/2024 09:25

** Shares in Portuguese retailer Jeronimo Martins  JMT.LS 
fall around 6%, with analysts flagging softer volumes in its key
Polish business
    ** "Q4 sales confirm a more pressured picture in both 
Poland and Colombia, with volumes in the former worse than
feared even against buy-side expectations," Jefferies says 
    ** The broker says Jeronimo's Q4 sales came in at 8.157
billion euros vs consensus expectations of 8.237 billion euros,
with Biedronka coming weaker than expected
    ** "Momentum came out well bellow downgraded expectations
into the print, with Biedronka LFLs at 5% in 4Q vs 7% expected
into the print and consensus at 9% a few weeks back," J.P.Morgan
analysts note
    ** JPM adds it implies a return to negative volume
territory, despite Biedronka's ongoing price cuts, and the
brokerage expects LSD% downgrades to Q4 profits to account for
this shortfall
    ** Shares in Polish food retailer Dino Polska  DNP.WA  fall
5.6%
    ** If losses hold, Jeronimo's stock will see its worst day
since end July
    

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com))