The Jerónimo Martins group, present in food distribution in Poland since 1995, admits in its outlook for this year that “the rapid rise in food, energy and transport inflation is accentuated by the military conflict [na Ucrânia] and increasing the limitations felt in international supply chains”.
In the outlook for 2022, announced today to the market with 2021 accounts, the administration of the retail group that owns Pingo Doce and Recheio in Portugal, says the situation on Ukrainian territory “intensifies the challenges ahead”, although it admits that in the second week “after the invasion of the Ukraine by the military forces of the Russian Federation, it is still too early to understand all the consequences for the region, for Europe and for the world”. “In addition,” he adds, “there is a visible depreciation of Eastern European currencies, namely the zloty.”
In Poland – a country which has already received more than 1.2 million Ukrainian refugees fleeing the war in less than two weeks – the 3,250 stores of the Biedronka group achieved 14.54 billion euros (69.7%) in turnover. consolidated business of 20.889 million that the group achieved in 2021, was confirmed today. The group also has the Hebe network of pharmacies and parapharmacies, with 291 units and a turnover of 278 million euros.
“Despite the lack of visibility at the moment on the impact of recent events in Ukraine, in particular on the extent of cost inflation, Biedronka is ready to strengthen its price investment and ensure its competitiveness, which will increase the pressure on margins”, admits the listed company headed by Pedro Soares dos Santos.
Support “the Polish effort to help the Ukrainian people”
The company, through Biedronka, “hopes to be able to maintain its expansion plan for the year” in Poland and maintains the intention to open “130 additional stores and a new distribution center, as well as to remodel approximately 350 locations. in 2022″.
But he stresses that “the current situation requires even more rigorous monitoring and greater adaptability”. The group will thus “constantly re-evaluate needs and priorities”, in order to ensure that its “first objective in Poland is achieved”: working with suppliers “to overcome probable constraints in the supply chain and continue to to be the favorite food store of the Poles”. [o grupo é líder no retalho alimentar na Polónia]while supporting the Polish effort to help the Ukrainian people”.
In this context, it highlights its employees in a market which is now facing the exodus of nearly 1.3 million people from the neighboring country. Flexibility and responsiveness in the face of particularly demanding circumstances will continue to characterize the attitude of our teams, who have shown remarkable mobilization to come to the aid of refugees” from Ukraine, adds the administration.
In conclusion, “although the current circumstances do not advise accelerating decisions on future growth trajectories”, the management of the group controlled by the family holding Sociedade Francisco Manuel dos Santos believes that Jerónimo Martins SGPS continues to have “the financial flexibility necessary to do so, without compromising the execution of the investment plan for the year (approximately 850 million euros) and the payment of
dividends” in the amount of 493.3 million euros, i.e. 0.785 euros per share (before tax) – and 100% of consolidated net income “excluding the effects of the application of the [norma contabilística] IFRS16”.
The group ended the year with profits, after minority interests, of 463 million euros (taking into account the application of the IFRS16 standard), i.e. 48.3% more than in 2020. EBITDA (profit before interest, taxes, depreciation) and amortization) of 1.5 billion euros, 11.4% more than a year earlier.