JERÓNIMO MARTINS SGPS, S.A. Q Results

Transcription

1 JERÓNIMO MARTINS SGPS, S.A. Q Results Lisbon, 28 th April 2010 (Million Euro) Q1 10 Q1 09 % Euro % w/o f/x A quarter with remarkable growth which led LFL Group s sales to increase by +9.7% due to the strong performances, on the same stores base, by Pingo Doce (+9.7%), Biedronka (+13.3%) and Recheio (+2.2%). Consolidated sales grew 21.8% (+14.1% at a constant exchange rate), reaching Euro1,955.1 mn as a result of the increasing competitiveness of the business models. Consolidated EBITDA grew 17.5% (+9.4% at a constant exchange rate), reaching Euro118.3 mn and a margin of 6.0%. Net profit, boosted by the sales, increased by 30.1%, reaching Euro42.3 mn. In the first quarter, the performance of the Group's main formats was the result of the priority set to increase market share through an outperforming LFL growth, based on strong commercial propositions. The Group therefore confirms its expectations for a solid evolution of sales and earnings in Net Sales 1, , EBITDA EBITDA Mg (%) Net Results JM w/o non recurr EPS ( ) Forthcoming Events: H1 Results 2010: 28 th July M Results 2010: 28 th October 2010 Investor Relations Office: ( ) investor.relations@jeronimo martins.pt Cláudia Falcão claudia.falcao@jeronimo martins.pt Hugo Fernandes hugo.fernandes@jeronimo martins.pt Jerónimo Martins, SGPS, SA Public Company Corporate Address: Rua Tierno Galvan, Torre 3, 9º Piso, Letra J Lisboa Share Capital: Eur 629,293, Registered at the Commercial Registry Office of Lisbon and Tax Number:

2 Q Performance Analysis Key figures +21.8% growth (+14.1% at constant exchange rate) in Consolidated Sales which reached Euro1,955.1 mn +17.5% growth (+9.4% at constant exchange rate) in Consolidated EBITDA which reached Euro118.3 mn +30.1% growth in Net Profit attributable to JM which reached Euro42.3 mn Net Debt was Euro735.2 mn The Group's formats continue to benefit from a clear strategy that now makes them very price competitive, with a totally consumer orientated assortment, sustainable differentiation factors and strong awareness in the market. Consolidated sales reached Euro1,955.1 mn, a growth of 21.8%, made up of i) +9.3p.p. from the growth in the Group s LFL sales, ii) +4.8p.p. from the growth in sales related to new or refurbished stores and iii) +7.7p.p. from the appreciation of the Zloty against the Euro (an increase of 12.8% at the average exchange rate for the period). The LFL growth was the most relevant part of the performance posted this quarter, not only due to it prominence, but mainly as it confirms the success of the strategies that were implemented in Pingo Doce, Recheio and Biedronka. It should be noted that in Portugal, although prices are starting to show signs of stabilizing throughout 2010, when compared with the same period the previous year, there is still a negative inflation, which for the average Pingo Doce basket, reached 4.9% in this first quarter, in line with the country s food inflation index. Pingo Doce s LFL growth of 9.7% reflects a very strong evolution in volume of 15%, carrying the Company s strong sales dynamics on from the previous quarters. Pingo Doce is capitalizing on the adjustments made in 2009, (price adjustments on key products, reinforcement of the perishables assortment and a new advertising campaign). It should be noted that the first quarter of 2010 is the period in the year with a less demanding sales comparison. Recheio also continued to by pass the adverse macroeconomic environment that is affecting both the HoReCa channel and Traditional Retail and posted a 2.2% growth in LFL sales, an increase of around 4% of volumes sold. Biedronka maintained its dynamic LFL performance, already seen in the last quarter of 2009, reaching 13.3% in the first three months of the year, with a special mention to the remarkable 15.9% growth in the food categories, whilst the performance of the non food categories reflected the repositioning (reduced assortment) which they underwent throughout the first half of Prices remained stable in comparison to the same period the previous year. The Company s total sales grew 21.2% in local currency (+36.7% in Euros) boosted by the LFL and by the store opening plan, which included 42 new locations this quarter. In Manufacturing, sales in volume had a positive performance, especially the olive oil and iced tea. In value terms, this business area s sales posted a fall of 1.4%, a reflection of the prices evolution in the market. In Marketing, Representations and Restaurant Services, the LFL sales performance ( 2.0%) reflected the pressure on some categories following the growth in retailers private brands. The new represented brands that joined the Company s portfolio in 2009 contributed towards the total sales performance (+4.0%). Consolidated EBITDA grew 17.5%, reaching Euro118.3 mn in the first quarter of The respective margin went from 6.3% (1Q09) to 6.0% (1Q10) It should be noted that in this first quarter, EBITDA includes costs that are one off in year, which in 2009 were reflected in the second quarter. If we exclude this effect, the consolidated margin would remain stable. Q Results 2 / 7

3 The increased weight of the advertising costs related to the Pingo Doce advertising campaign which began in the fourth quarter of 2009 should also be highlighted, which are not so diluted in the first three months sales, which according to business' normal seasonal conditions, represent the quarter with the lowest sales. The EBITDA generated by Biedronka grew 26.8% in local currency (+43.1% in Euros) due to the growth in sales and the increase in the margin of 30b.p. to 6.5% of sales. Financial charges reached Euro17.0 mn, a drop of 18.9% if we exclude the profits recorded in 2009 related to hedging operations. This evolution followed the reduction in average debt and in the average associated cost. Net profit attributable to Jerónimo Martins grew 30.1%, reaching Euro42.3 mn, a substantial 34.5% if we exclude the non recurring items. Consolidated net debt was Euro735.2 mn, a reduction of Euro201.4 mn compared to the first quarter of the previous year. Outlook for 2010 The performance of the various business models in the first three months of the year was in line with the objectives set by the Group and reflected their position as market leaders. The Group confirms its positive expectations regarding a solid sales and earnings evolution for the end of the year. The Group is maintaining market share growth through LFL as one of its top priorities, estimating that EBITDA will at least grow in line with sales. The estimated Capex for the year is around Euro400 mn, focused on the store openings in Poland and refurbishing in Portugal. Q Results 3 / 7

4 CONSOLIDATED RESULTS Q1 10 Q1 09 Tho. Euro % Tho. Euro % % Net Sales & Services 1,955,130 1,605, % Total Margin 446, % 375, % 18.8% Operating Costs 328, % 275, % 19.4% EBITDA 118, % 100, % 17.5% Depreciation 45, % 40, % 11.6% EBIT 72, % 59, % 0.0% 21.5% Net Financial Results 17, % 17, % 2.8% Non Recurrent Items 1, % % EBT 53, % 43, % 25.1% Taxes 10, % 7, % 43.4% Net Profit 43, % 35, % 21.4% Minority Interests 1, % 3, % 65.4% Net Profit attr. to JM 42, % 32, % 30.1% EPS (euro) % Cash Flow per share (euro) % Consolidated Sales (Euro Million) 1,955 Biedronka 1, % 55.6% 49.6% Retail Portugal 35.3% +9.4% 31.7% Recheio Manuf. & Others 9.6% +2.1% 8.0% 5.6% +1.4% 4.6% Q1 09 Q Contribution to Consolidated Sales Growth (Euro Million) , ,955 1, % +0.2% +0.1% +10.5% +7.7% +21.8% +14.1% Annexes Q1 09 JMR Recheio Biedronka Others Q1 10 excl. F/X F/X Q1 10 Q Results 4 / 7

5 SALES GROWTH Total Sales Growth LFL Sales Growth Q1 10 Q1 10 JMR 9.4% 7.9% Supermarkets 13.0% 9.7% Hypers 14.2% 7.3%* Recheio 2.1% 2.2% Madeira 4.8% 16.4% Biedronka Euro 36.7% PLN 21.2% 13.3% Manufacturing 1.4% 1.4% Mkt. Repr. and Rest. Serv. 4.0% 2.0% * excluding two store under revamping NUMBER OF STORES Openings Closings Network 09 YE Q1 10 Q1 10 Q1 10 Q1 09 JMR Supermarkets Hypers Recheio Madeira Biedronka 1, ,504 1,372 1,859 1,897 1,766 SALES AREA (sqm) Openings Closings* Network 09 YE Q1 10 Q1 10 Q1 10 Q1 09 JMR 434,744 1,605 3, , ,509 Supermarkets 352,276 1, , ,041 Hypers 82, ,190 79,278 82,468 Recheio 114, , ,724 Madeira 14, ,253 14,300 Biedronka 814,493 26,951 1, , ,502 * including changes of sales area due to remodellings Q Results 5 / 7

6 NET SALES AND SERVICES Q1 10 Q1 09 % Eur Tho. % total Eur Tho. % total Pln Euro Retail Mainland 670, % 612, % 9.5% Cash & Carry Mainland 156, % 153, % 2.1% Madeira 29, % 28, % 4.8% Poland Biedronka 1,087, % 795, % 21.2% 36.7% Manufacturing 53, % 54, % 1.4% Mkt. Repr. and Rest. Serv. 19, % 18, % 4.0% Consolidation Adjustments 62, % 57, % 8.2% Total JM 1,955, % 1,605, % 21.8% p.m. Retail Mainland 619, % 566, % 9.4% (store sales) EBITDA MARGIN DETAIL Q1 10 Q1 09 Distribution Portugal 5.6% 5.9% Poland Biedronka 6.5% 6.2% Manufacturing and Services 10.3% 12.1% INCOME STATEMENT BY FUNCTIONS (Thousand Euro) Q1 10 Q1 09 Sales and services rendered 1,955,130 1,605,131 Cost of sales 1,588,062 1,300,420 Supplementary income and costs 79,748 71,255 Gross Profit 446, ,966 Distribution costs 329, ,719 Administrative costs 45,045 35,507 Excepcional operating losses 1,517 1,167 Operating Profit 71,041 60,907 Net financial costs 17,058 17,541 Gains/Losses in other investments Profit in associated companies Profit before taxes 53,812 43,011 Income taxes 10,402 7,256 Profit before minority interests 43,410 35,755 Minority interests 1,119 3,238 JM Profit 42,291 32,517 Q Results 6 / 7

7 BALANCE SHEET (Thousand Euro) Q YE Q1 09 Net Goodwill 755, , ,499 Net Fixed Assets 2,177,511 2,101,566 1,888,071 Net Working Capital 1,185,643 1,201, ,293 Others 112, , ,263 Invested Capital 1,860,009 1,757,696 1,852,541 Financial Debt 823, , ,058 Leasings 84,237 84,560 94,714 Accrued interest 38,030 30,914 5,421 Marketable sec. & Bank deposits 210, ,769 73,542 Net Debt 735, , ,650 Minority Interests 285, , ,533 Share Capital 629, , ,293 Reserves and Retained Earnings 210, ,765 15,064 Shareholders Funds 1,124,770 1,065, ,890 Gearing 65.4% 64.9% 102.3% Reconciliation of the Consolidated Results with the table Income Statement by Functions The EBIT shown in the table Consolidated Results does not include non recurrent operational items which appear itemised in the Statement by Functions in Exceptional Operating Profit/Loss and are included in the Operating Profit shown there. The Financial Results shown in the table Consolidated Results include the Profit in Associated Companies as shown in the Income Statement by Functions. The non recurrent Items shown in the table Consolidated Results include the Exceptional Operating Profit/Loss and the Gains/Losses in Other Investments as shown in the "Income Statement by Functions". Definitions Like For Like (LFL) sales: sales made by stores that operated under the same conditions in the two periods. Excludes stores opened or closed in one of the two periods. Sales of stores that underwent profound remodelling are excluded for the remodelling period (store closure). Cash Flow per share: (Net Profit + Depreciation Deferred tax Non recurrent items) / Number of Shares Gearing: Net Debt / Shareholder Funds Q Results 7 / 7