JPM sees adverse weather conditions impact for Polish food retailers in Q2

Zabka SA

16/07/2025 08:21

** J.P. Morgan expects the Polish food retail sector to have a second quarter reporting cycle marked by the impact of adverse weather conditions after the coldest month of May in 30 years, with more rainy days that prompted consumers to stay more indoors

** The broker points to differences in format and product ranges of the listed food retailers and says that weaker sales of "weather-sensitive" assortment may have a different effect on sales and margins on a relative basis

** JPM believes that Jeronimo Martins JMT.LS and Zabka ZAB.WA could have been less impacted by the adverse weather conditions relative to Dino DNP.WA

** It sees Dino's like-for-like and margin momentum to turn out to be less impressive than the Street's current expectations, seeing the retailer as better placed for frequent shopping in smaller baskets including impulse purchases, and typically more affected by weather conditions

** For Zabka, JPM now expects a less impressive quarter on sales but believes the retailer was able to offset the impact on margins with a growing share of the higher margin Quick Meal Solutions category in its sales mix

** As for Jeronimo Martins' Biedronka, the broker says that the shares have headroom to rally further on a combination of earnings upgrades and valuation re-rating and it is its preferred pick into the second quarter results

 (Reporting by Joao Manuel Mauricio)

 ((JoaoManuel.VicenteMauricio@thomsonreuters.com))