JERÓNIMO MARTINS SGPS, S.A. Q Results

Transcription

1 JERÓNIMO MARTINS SGPS, S.A. Q Results Lisbon, 6 th May 2009 Consolidated Net Sales increased 20.3% and consolidated EBITDA increased 23.3% (excluding f/x effect), reflecting the strength of the Company s business models. (Million ) Q1 09 Q1 08 Δ% Net Sales 1, , EBITDA Mg EBITDA 6.3% 6.1% Net Results JM w/o non recurr EPS ( ) Consolidated EBITDA already surpassed 100 million euros in the first 3 months of the year and the EBITDA margin increased from 6.1% to 6.3%. The strong operating performance drove the Net Result attributable to Jerónimo Martins to increase by 2.0%, more than compensating the negative impacts from calendar, currency and non recurrent profits registered in the same period of Financial Calendar 2009: Results Q2 2009: 27 July Results Q3 2009: 29 October Investor Relations Office : Cláudia Falcão claudia.falcao@jeronimo martins.pt Hugo Fernandes hugo.fernandes@jeronimo martins.pt ( ) investor.relations@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 +6.7% growth (+20.3% excl. f/x effect) in Consolidated Sales which reached Euro1,605.1 mn +9.6% growth (+23.3% excl. f/x effect) in Consolidated EBITDA which reached Euro100.7 mn +2.0% growth in Net Profit attributable to JM which reached Euro32.5 mn Net Debt reached Euro936.7 mn Consolidated net sales increased 20.3% and consolidated EBITDA increased 23.3% (excluding f/x effect), reflecting the Group s strong operational performance in the first three months of the year. With regard to sales, it is important to stress the 2.0% growth of the Group LFL sales (excluding f/x effect), despite the fact that the first three months of the year have the lowest contribution to the year s figures especially when Easter falls in the second quarter (with a subsequent negative calendar effect), as was the case in The biggest single contributor to this comparable sales growth was Biedronka (+7.7%) and, on a smaller scale, Recheio (+1.8%) and the positive volume performance in the Pingo Doce supermarkets. Consolidated net sales in the first quarter increased by 6.7% (+20.3% excluding f/x effect) to Euro1,605.1 mn and reflected, apart from LFL growth, the expansion plan implemented during last year, which increased the Group s number of stores by 400 compared to Q Consolidated EBITDA increased by 9.6% (+23.3% excluding f/x effect) to Euro100.7 mn. EBITDA margin increased from 6.1% in Q to 6.3% in Q The strong EBITDA performance was helped by the sourcing synergies brought by the recent expansion accomplished by the Group. In this first quarter, Retail in Portugal was the area where sourcing benefits and integration synergies were already visible. The operating performance of the Group drove the net result attributable to increase by 2.0%, more than compensating the negative impact from calendar, currency and non recurrent profits registered in the same period of Consolidated net debt reached Euro936.7 mn in Q and reflected, compared with the end of 2008, the normal business seasonality. Outlook Jerónimo Martins continues to face 2009 with prudence despite the sales growth reflected the strength of its business models, particularly in the Distribution area, through Pingo Doce supermarkets, Recheio and Biedronka. The operating performance posted in Q reflected the scale benefits in sourcing achieved thanks to the growth strategy implemented by the Group in the last few years. As the contribution of the recently opened stores is still below the standard of the mature stores, the visibility of scale benefits into earnings should progressively increase. Q Results 2 / 8

3 Sales and Results Analysis CONSOLIDATED RESULTS Q1 09 Q1 08 Tho. Euro % Tho. Euro % Δ% Net Sales & Services 1,605,131 1,504, % Total Margin 375, % 332, % 13.1% Operating Costs 275, % 240, % 14.5% EBITDA 100, % 91, % 9.6% Depreciation 40, % 35, % 13.9% EBIT 59, % 55, % 6.8% Net Financial Results 17, % 24, % 29.5% Non Recurrent Items % 9, % EBT 43, % 40, % 5.7% Taxes 7, % 8, % 11.8% Net Profit 35, % 32, % 10.2% Minority Interests 3, % % Net Profit attr. to JM 32, % 31, % 2.0% EPS (euro) % Cash Flow per share (euro) % 7.8% Consolidated Sales (Euro Million) 1,505 1,605 Biedronka 50.3% +5.2% 49.6% Retail Portugal 33.8% +11.2% 35.3% Recheio Manuf. & Others 9.7% +5.2% 9,6% 6.2% 4.0% 5,6% Q1 08 Q % Contribution to Consolidated Sales Growth (Euro Million) ,811 1, , % 0.2% +20.3% 13.7% +6.7% +16.3% +3.8% Q1 08 JMR Biedronka Recheio Others Q1 09 exc. F/X F/X Q1 09 Q Results 3 / 8

4 Sales Analysis NET SALES AND SERVICES Q1 09 Q1 08 Δ % Eur Tho. % total Eur Tho. % total Pln Euro Retail Mainland 612, % 550, % 11.2% Cash & Carry Mainland 153, % 146, % 5.2% Madeira 28, % 29, % 4.3% Poland Biedronka 795, % 756, % 32.3% 5.2% Manufacturing 54, % 59, % 8.2% Mkt. Repr. and Rest. Serv. 18, % 17, % 5.0% Consolidation Adjustments 57, % 54, % 5.6% Total JM 1,605, % 1,504, % 6.7% p.m. Retail Mainland 566, % 509, % 11.2% (store sales) Consolidated sales increased by 6.7% (+20.3% excluding f/x effect), reaching Euro1,605.1 mn during the first 3 months of the year. This performance reflected the growth in the majority of the different business areas along with the contribution of the expansion plan executed in When analysing the performance compared to the same period last year, it is important to take into account the adverse calendar effect of the day lost in February 2009 compared to February 2008 and also from the fact that Easter this year fell in April instead of March as in In Portugal, food inflation has maintained the slowdown trend seen in the last quarter of 2008 and the Pingo Doce s average basket reflected this trend when comparing Q vs. Q At Pingo Doce supermarkets the c.1% volume growth on a LFL basis ( 0.7% in value) reflected a greater dynamism of the smaller stores. In the compact stores, where the weight of non food is higher and seasonality effect is stronger, the LFL growth of 11.1% also reflected the impact of the assortment reduction implemented in 2008 during the conversion process into Pingo Doce. The Group s hypermarkets continued their planned repositioning with a reduction of the total assortment and the consequent impact in the behaviour of LFL sales. With regards to the behaviour of the LFL sales in Portugal, we are noticing a reduction in the average ticket together with an increase in the number of visits, which may indicate a more rational/conservative behaviour of customers purchasing habits. With 87 new stores, Retail in Portugal increased total sales by 11.2% compared with Q In Poland, although in the last few weeks of the quarter we observed an inflationary pressure in some categories, in Q vs. Q1 2008, the prices in Biedronka s reference basket remained practically unchanged. Evolution of volumes was very dynamic and, on a LFL basis, sales increased by 7.7% compared to Q Operating 311 more stores than in the same period last year, Biedronka, registered a total sales increase of 32.3% in local currency and 5.2% in euros. Recheio continued increasing its competitiveness in the market and registered sales growth in both segments, HoReCa and Traditional that together caused LFL sales to increase by 1.8%. The LFL performance and one more store acquired in November 2008 led total sales to increase by 5.2%, reinforcing Recheio leadership in the country. Q Results 4 / 8

5 With regards to Manufacturing, although some categories have noticed an increasing competition from distribution brands, some key categories (dressings, home and personal care and margarines, amongst others) increased market share. Sales behaviour in the first quarter reflected, apart from the calendar effect, a policy of stock reduction adopted by the different Manufacturing clients, the effect of which is expected to be diluted along the year. In the business area of Marketing, Representations and Restaurants, total sales increased by 5.0%, reflecting two new brands represented in the portfolio as from the second half of Results Analysis Consolidated EBITDA increased by 9.6% (+23.3% excluding f/x effect) to Euro100.7 mn. EBITDA margin increased to 6.3% from 6.1% in Q Regarding the performance of EBITDA, the improvements in sourcing were specially relevant and included new procurement processes as well as the synergies and scale gains resulting from the larger size of the Group operations. Bearing in mind that the recent expansion has not reached full maturity, sourcing gains are not yet fully translated into earnings. The evolution of financial charges, which decreased by 29.5% to Euro17.5 mn reflected on one hand the increasing interest charges related with a higher debt position of the Group and on the other hand extraordinary costs related to hedging incurred in Net results increased by 2.0% (+38.1% excluding non recurrent). Other Information Similarly to other situations reported in the past, Jerónimo Martins Group informs that it received a Corporate Income Tax additional assessment, issued by the Portuguese Tax Authorities, to the amount of Euro9.3 mn, related to the tax year 2005 and regarding corrections made to companies taxed under Group's Special Tax Regime, lead by JMR Gestão de Empresas de Retalho, SGPS, S.A.. The Jerónimo Martins Group, supported by its lawyers and tax advisors opinion, considers that the arguments used by the Portuguese Tax Authorities are not valid and have no legal grounds and will use every means at its disposal to challenge them and to oppose any consequences that they may cause. Furthermore, the Group will not change its financial statements. Q Results 5 / 8

6 Appendix Store Network NUMBER OF STORES Openings Closings Network 08 YE Q1 09 Q1 09 Q1 09 Q1 08 JMR Supermarkets (<1,500sqm) Compacts (>1,500sqm) Hypers Recheio Madeira Biedronka 1, ,372 1,061 SALES AREA (sqm) 1,766 Openings Closings* Network 08 YE Q1 09 Q1 09 Q1 09 Q1 08 JMR 433,049 1, , ,077 Supermarkets (<1,500sqm) 248,628 1,000 1, , ,531 Compacts(>1,500sqm) 101, , ,831 96,893 Hypers 82, ,468 82,653 Recheio 115, , ,634 Madeira 14, ,300 14,626 Biedronka 753,531 17,452 6, , ,445 * including changes of sales area due to remodellings Sales Detail SALES GROWTH Total Sales Growth LFL Sales Growth Q1 09 Q1 09 JMR 11.2% 4.6% Supermarkets(<1,500sqm) 23.6% 0.7% Compacts(>1,500sqm) 2.7% 11.1% Hypers 12.9% 10.1% * Recheio 5.2% 1.8% Madeira 4.3% 4.4% Biedronka Euro 5.2% PLN 32.3% 7.7% Manufacturing 8.2% 8.2% Mkt. Repr. and Rest. Serv. 5.0% 7.3% * excluding two stores under revamping Q Results 6 / 8

7 Income Statement by Functions INCOME STATEMENT BY FUNCTIONS (Thousand Euro) Q1 09 Q1 08 Sales and services rendered 1,605,131 1,504,911 Cost of sales 1,300,420 1,224,637 Supplementary income and costs 71,255 52,048 Gross Profit 375, ,322 Distribution costs 280, ,228 Administrative costs 35,507 35,142 Excepcional operating losses 1,167 9,573 Operating Profit 60,907 65,525 Net financial costs 17,541 24,686 Gains/Losses in other investments Profit in associated companies 29 9 Profit before taxes 43,011 40,682 Income taxes 7,256 8,230 Profit before minority interests 35,755 32,452 Minority interests 3, JM Profit 32,517 31,879 Consolidated Balance Sheet BALANCE SHEET (Thousand Euro) Q YE Q1 08 Net Goodwill 698, , ,131 Net Fixed Assets 1,888,071 1,967,459 1,790,099 Net Working Capital 870,293 1,065, ,817 Others 136, , ,511 Invested Capital 1,852,541 1,776,975 1,443,924 Debt 910, , ,284 Leasings 94, ,659 86,678 Accrued interest 5,421 21,811 46,258 Marketable sec. & Bank deposits 73, , ,770 Net Debt 936, , ,449 Minority Interests 271, , ,617 Share Capital 629, , ,293 Reserves and Retained Earnings 15,064 20,525 78,435 Shareholders Funds 915, , ,475 Gearing 102.3% 90.8% 74.7% Q Results 7 / 8

8 Reconciliation of the Consolidated Net Results with the table Income Statement by Functions The EBIT shown in the table Consolidated Net 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 Net Results include the Profit in Associated Companies as shown in the Income Statement by Functions. The Non Recurrent Items shown in the table Consolidated Net Results include the Exceptional Operating Profit/Loss and the Gains/Losses in Other Investments as shown in the Income Statement by Functions, as well as the gains regarding the coverage of the operation of the Plus acquisition in Poland which are included in the Income Statement by Functions under Net Financial Costs. 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 8 / 8