Portuguese retailer Jeronimo Martins recorded an increase in net profit over the first quarter, with growth driven by its Polish division.
The grocery retailer said today (4 May) that consolidated net profit rose 33.5% to reach EUR56.4m (US$84.2m), while sales grew 14.7% to EUR2.2bn. Like-for-like sales were up 6.9% over the period.
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Its Polish division, Biedronka recorded a 21.7% increase in sales, in local currency, which it attributed to an 11.7% like-for-like sales increase and a 13% increase in selling area. Sales reached EUR1.3bn for the quarter. It said that inflation in the average basket “progressively accelerated” over the first three months of the year, reaching around 4% in the quarter.
It said that in Portugal, the deteriorating macroeconomic environment has meant there has been a growing preference for private labels and a “certain trading down” within the most expensive categories.
Its Pingo Doce supermarket chain recorded 4.6% sales growth to EUR710m, and was up 0.1% on a like-for-like basis, excluding petrol. It’s Recheio cash and carry format recorded a 3.7% increase in sales to EUR163m, and was up 0.4% on a like-for-like basis.
The company said it continues to focus on Poland to drive growth, with some 75% of its EUR450-500m investment programme for 2011 to be spent in the country.
