The following is a summary of the Jerónimo Martins, SGPS, S.A. (JRONY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Jerónimo Martins reported an EBITDA growth of 13.9% or 5.1% at constant exchange rates in Q1 2024.
Despite strong sales, the EBITDA margin contracted by 26 basis points due to increased competition and challenges from food and cost deflation.
Net earnings remained consistent with the same quarter of the last fiscal year.
A net cash position of €1 billion was maintained, excluding capitalized leases.
There was an improvement in working capital, aided by changes in payment terms for smaller suppliers.
Business Progress:
The company experienced growth in like-for-like sales volume across all its banners including Biedronka, Pingo Doce, Recheio, and Ara.
An aggressive store expansion initiative was undertaken with new store openings across multiple banners.
The company also invested in infrastructure to bolster market position and operational efficiency.
Work continues on strategic priorities aimed at ensuring customer preference and protecting profitability.
Despite challenging market conditions, the company managed growth through quality assortments, appealing stores, and efficient logistics and plans to continue investing in price point and quality of offerings.
Gross margin contraction across segments was offset partially by growth solutions and supplier investments.
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