Portugal-based retailer Jeronimo Martins has reduced its capital expenditure plans for its start-up business in Colombia.

Jeronimo Martins has halved its investment plans for Colombia to EUR50m from EUR100m.

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The retailer made Colombia its third market in March when it opened its first store, under the Ara banner, in the city of Pereira.

The company said then it planned to open 40 Ara stores this year and wanted to have 150 outlets in Colombia by the end of 2015. It also set a goal of becoming one of the three largest retailers in the South American country.

Commenting on the move, Kepler analyst Inigo Egusquiza said Jeronimo Martins could be easing its foot off the pedal in Colombia. “After listening to JM’s conference call, we get the impression that the Colombia/ARA business plan is partly under review,” he wrote in an investor note today (1 November).

The revised capex plans for Colombia came as Jeronimo Martins, announcing its nine-month results, cut its forecast for EBITDA for 2013.

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Consolidated sales and EBITDA was up in the nine months to the end of September. In each of the group’s main markets – Poland and Portugal – Jeronimo Martins booked like-for-like sales expansion of 4%.

However, EBITDA margin slipped to 6.6% from 6.8%. Difficult trading conditions have meant that Jeronimo Martins has had to step up its investment in pricing, particularly in the Polish market where it competes against the likes of the UK’s Tesco.

Jeronimo Martins said that it now anticipates double-digit full-year sales, with EBITDA growth trailing. Previously, Jeronimo Martins had suggested that earnings would be in line with sales growth.