Jeronimo falls on expectations of more margin pressure driven by Poland

Jeronimo Martins SGPS SA

07/03/2024 08:58

** Shares in Jeronimo Martins  JMT.LS  fall around 8%, after
Portuguese retailer posted a 16% jump in Q4 net profit, but
added that the combination of food deflation and costs increase
"will further pressure our margins"
    ** Jefferies says that Poland business drives more margin
pressure in 2024 as there is heightened competitive intensity,
opex rises, and disinflation
    ** "With Poland facing tough comps in the first two Qs, a
'surprise' continued volume/mix contraction in Jan, and a
'competitive context that has become more intense', JMT is
unable to 'exclude that the EBITDA margin may suffer more
pressure' than 2023's -21bps (cons for 2024 c.-15bps)", it adds
    ** EBITDA grew 14% to 578 million euros  ($629.73 million),
but Jeronimo Martins' EBITDA margin slipped to 7.1% at end-2023
from 7.2% a year earlier
    ** Shares in Polish food retailer Dino Polska  DNP.WA  fall
6.5%
    ** If losses hold, Jeronimo's stock will see its worst day
since Nov 2021



($1 = 0.9179 euros)

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