Jeronimo Martins' profit drops, outlook reaffirmed as sales still rise (updated)

Jeronimo Martins SGPS SA

06/05/2026 18:07

Adds EBITDA margin, quote, details

LISBON, May 6 (Reuters) - Portuguese retailer Jeronimo Martins posted on Wednesday a 6.8% drop in first-quarter net profit, driven by interest and exchange rate impact from the capitalisation of leases, even as net sales rose 6%, including by 3.6% in its main market Poland.

Net profit totalled 119 million euros ($139.84 million). EBITDA increased by over 8%, with the EBITDA margin - a key measure of profitability, rising 13 basis points from a year ago to 6.4% The margin at its Polish unit Beidronka - the country's largest food retailer, rose to 7.8% from 7.7%.

It said geopolitical events such as the war in Iran had led to a rise in costs, particularly in fuel, while consumers remained cautious about food spending, continuing to favour low prices and promotions. Still, it reiterated its 2026 outlook.

"Despite this demanding context, the group’s banners delivered a strong first quarter, with solid growth in both sales and EBITDA. This performance reinforces our confidence in the competitive strength and resilience of all our business models," the company said in a statement.

($1 = 0.8510 euros)

(Reporting by Andrei Khalip)

((andrei.khalip@thomsonreuters.com; (351) 213-509-209))