Portugal-based retailer Jeronimo Martins has booked a 21% rise in full-year profits, thanks largely to strong growth from its Polish operations.
The group earned EUR340m (US$446.5m) in 2011, compared to EUR281m in 2010, with Poland, where the retailer runs over 1,870 stores, the main driver of growth and profitability.
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The company’s Polish discount chain Biedronka recorded 20.4% sales growth and 13.4% like-for-like, while EBITDA increased 26.2%. The chain represents around 60% of sales and 64% of the group’s total EBITDA, the retailer said. At the end of the year, the Biedronka store count totalled 1,873.
“2011 was another very good year for our group and has confirmed our execution capability, particularly in Poland where we have delivered a challenging expansion plan and we have improved further the appeal and competitiveness of our format,” CEO Pedro Soares dos Santos said.
The firm said it was able to invest EUR449m in its operations last year, of which around 70% was spent in Poland.
EBTIDA in the 12-month period grew 15.6% to EUR722m, while sales climbed 13.2% to EUR9.84bn.
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By GlobalDataPingo Doce, Recheio and Madeira, Jeronimo Martins’ Portuguese food retail banners, saw sales rise 4.2%, 4.9%, and 14.4% respectively.
In the fourth quarter, however, Jeronimo Martins’ net profit slid 2.9% to EUR85m. The company blamed the decline on higher taxes and sales costs.
Nonetheless, EBTIDA grew 6.1% to EUR194m, while sales increased 6.8% to reach EUR2.52bn.
Globally, Jeronimo Martins said it expects 2012 to be “another year of solid results”, supported by the strong growth of Biedronka in Poland.
Estimates point to “double-digit” growth in consolidated sales (at a constant exchange rate) and the group’s EBITDA is expected to grow more than sales. The investment programme for 2012 is expected to reach EUR650m, of which around 80% will be invested in expanding the Biedronka network.
