2016 FIRST HALF RESULTS

Transcription

1 2016 FIRST HALF RESULTS July 28, 2016 February 27, 2013

2 Index 1. KEY MESSAGES 2. KEY FIGURES 3. INCOME STATEMENT 4. CASH FLOW Separadores Lorem Ipsum 5. BALANCE SHEET 6. SALES PERFORMANCE 7. EBITDA PERFORMANCE 8. FINAL REMARKS & OUTLOOK 2

3 1. KEY MESSAGES Remarkable LFL sales growth in Biedronka as the main driver of the strong performance registered by the Group Market share increases in all businesses driven by reinforced value propositions and strong promotional dynamics Food inflation remains negative in our basket in both Biedronka and Pingo Doce Sales growth and cost discipline driving earnings momentum 3

4 2. KEY FIGURES (Million ) H1 15 H1 16 NET SALES excluding F/X EBITDA excluding F/X 6, % 6, % % % EBITDA MARGIN 5.5% 5.6% NET ATTRIBUTABLE RESULTS excluding non-recurrent % % 174 EPS NET DEBT Gearing % 17.6% 4

5 3.1. INCOME STATEMENT Q2 (Million ) Q2 16 Q2 15 Change Net Sales and Services 3,583 3, % Gross Profit % % 3.1% Operating Costs % % 3.0% EBITDA % % 3.5% Depreciation % % -2.1% EBIT % % 6.9% Net financial costs % % -17.3% Gains in joint ventures and associates 5 0.1% 4 0.1% 6.3% Non-Recurrent Items % % n.a. EBT % % 10.9% Income tax % % 6.5% Net Profit % % 12.3% Non Controlling Interests % % 23.1% Net Profit attributable to JM % % 11.8% EPS ( ) % 5

6 3.2. INCOME STATEMENT H1 (Million ) H1 16 H1 15 Change Net Sales and Services 6,959 6, % Gross Profit 1, % 1, % 4.1% Operating Costs -1, % -1, % 3.1% EBITDA % % 6.8% Depreciation % % -0.7% EBIT % % 11.9% Net financial costs % % -18.7% Gains in joint ventures and associates 8 0.1% 8 0.1% -4.5% Non-Recurrent Items % % n.a. EBT % % 14.2% Income tax % % 9.6% Net Profit % % 15.6% Non Controlling Interests % % 25.6% Net Profit attributable to JM % % 15.1% EPS ( ) % 6

7 4. CASH FLOW (Million ) H1 16 H1 15 EBITDA Interest Payment Other Financial Items 3 11 Income Tax Funds From Operations Capex Payment Working Capital Movement Others 0-4 Free Cash Flow

8 5. BALANCE SHEET (Million ) H H1 15 Net Goodwill Net Fixed Assets 3,026 3,060 3,002 Total Working Capital -1,919-2,001-1,732 Others Invested Capital 1,833 1,780 2,026 Net Debt Non-Controlling Interests Share Capital Reserves and Retained Earnings Shareholders Funds 1,558 1,593 1,640 Gearing 17.6% 11.7% 23.5% Debt / EBITDA (12 months) 0.3x 0.2x 0.5x Interest Cover (12 months) 22.0x 19.1x 15.8x 8

9 6. SALES PERFORMANCE Group Two strong quarters driven mainly by Biedronka, resulted in H1 sales growth of 9.1% at constant currency (+4.7% incl. F/X) Top line focus and enhanced value propositions led Group LFL to reach 6.3% (+6.6% in Q2 16) Ara and Hebe contributed with 156m of sales in H1 16 vs 103m in H1 15 Contribution to Consolidated Sales Growth (Million ) , , ,959 Contribution to Consolidated Sales Growth (Million ) 6, % 6, % +4.7% 67.7% +4.0% 67.2% Biedronka Pingo Doce Recheio 24.4% +3.9% 24.2% Others H1 15 Biedronka Pingo Doce Recheio Ara Hebe Others H1 16 excl. F/X F/X H % +4.2% 5.8% H1 15 H1 16 9

10 6. SALES PERFORMANCE Biedronka LFL SALES GROWTH SALES (Million ) 8% 7.6% 9.9% 4, ,939 4, % 2.9% 2.4% 3.5% 3.8% 0% +9.8% +4.0% -4% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 H1 15 LFL New Stores/ Revampings H1 16 excl. F/X F/X H1 16 Revised offer, stronger promotional dynamics and healthier consumer environment boosting LFL performance Basket deflation remains negative Sales reached 4.7bn, a growth of 4.0% (+9.8% in local currency) Market share reinforced* 40 new stores (26 net additions) in the first six months 94 stores refurbished over the period of which 66 in Q2 16 *Source: Gfk Poland, Consumer Panel, bimonthly FMCG food 10

11 6. SALES PERFORMANCE Pingo Doce Total sales grew 3.9% to 1.7bn LFL at 0.3% in H1 16, impacted by the persistent negative basket inflation and the difficult comparison basis Market share continued to be reinforced* LFL SALES GROWTH (EXCL. FUEL) 5.2% 4.7% 4.2% 4.1% 2.1% SALES (Million ) 1, , % -1.4% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 H1 15 LFL New Stores/ Revampings H1 16 *Source: TSR Nielsen Total Store Read 11

12 6. SALES PERFORMANCE Recheio A Healthy sales momentum on the back of improved HoReCa environment and strong commercial B proposition LFL at 3.6% in H1 16 One new store added to the network LFL SALES GROWTH SALES (Million ) 4.7% 4.1% 3.9% 3.8% 3.4% % +4.2% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 H1 15 LFL New Stores/ Revampings H

13 7. EBITDA PERFORMANCE (i) Group EBITDA reached 388m, representing growth of 6.8% over H1 15 (+10.3% excl. F/X) Biedronka as the main contributor to Group performance with respective EBITDA growth of 7.3% (+13.3% in zloty) EBITDA losses of Ara and Hebe at 28m (Ara representing c.70%) CONTRIBUTION TO CONSOLIDATED EBITDA GROWTH (Million ) % +6.8% H1 15 Biedronka Pingo Doce Recheio New Businesses Others H1 16 excl. F/X F/X H

14 7. EBITDA PERFORMANCE (ii) EBITDA Margin Group EBITDA margin at 5.6%, 10bps ahead of the same period in 2015 Biedronka Pingo Doce Recheio Group H1 15 H1 16 Strong LFL and rigorous cost management across businesses drove the improvement in the Group profitability Biedronka performance driving a healthy earnings momentum 14

15 8. FINAL REMARKS & OUTLOOK (i) Biedronka s performance confirms that we are positioned to reap the benefits of a growing food retail environment In Portugal, consumer environment remains very challenging but we are focused on reinforcing our market position In Colombia, we are getting ready to speed up our expansion with confidence in the model we have built over the last few years We believe the markets where we operate will remain uncertain and we anticipate sources of pressure on our costs structures. This will demand further discipline from our side but We had a good first half of the year and our focus on profitability through sales has been validated. We therefore reiterate the outlook given for the year 15

16 8. FINAL REMARKS & OUTLOOK (ii) As a Group, 2016 is the year for Pursuing the different cycle of growth that has been started in Biedronka Defining the growth pace for the future in Colombia While Maintaining sales as top priority Keeping efficiency and cost discipline as the base of our businesses Losses from Ara and Hebe at EBITDA level expected not to surpass 2015 ( 55.5m) at constant exchange rates Capex for the Group expected in the range m, of which c.45% in Biedronka Biedronka plans To reinforce its consumer centric approach To continue delivering on the offer improvement To always guarantee price leadership in the market To open c.100 new stores Pingo Doce and Recheio plan To continue strengthening market share To maintain revamping programme and the innovation in the offer Ara plans To validate the model in the second region, finetuning where needed while preparing to enter in the third region (Bogota) To assess the expansion pace into the future 16

17 Disclaimer Statements in this presentation that are forward-looking statements are based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The risks and uncertainties relate to factors that are beyond Jerónimo Martins ability to control or estimate precisely, such as general economic conditions, credit markets, foreign exchange fluctuations and regulatory developments. Except as required by any applicable law or regulation, Jerónimo Martins assumes no obligation to update the information contained in this release or to notify a reader in the event that any matter stated herein changes or becomes inaccurate. 17

18 2016 FIRST HALF RESULTS July 28, 2016 February 27, 2013