Jerónimo Martins 2020 Q2 results

Date : 31 July 2020

Lucy Bellotti

Retail Analyst

Jerónimo Martins revealed a mixed Q2 performance with an overall decrease in sales. Biedronka displayed a strong sales performance whereas, Ara’s expansion plans were impacted from the pandemic’s mandatory restrictions in Colombia.  

Sales performance

Jerónimo Martins’ consolidated sales decreased by 1.3% to €4.6bn with like-for-like (LFL) performance of -0.7%, in Q2 2020. Group EBITDA decreased by 4.9% to €635m due to additional costs related to the safety measures in place from the pandemic.

Source: Jerónimo Martins

Pedro Soares dos Santos, Jerónimo Martins’ CEO stated, The solid performance of our main business, the robustness of the Group's Balance Sheet and our teams’ capacity to adjust reinforce my confidence that we will be able to navigate these troubled waters successfully.’

Division performance

Jerónimo Martins is divided into different banners; Ara, Biedronka, Hebe, Pingo Doce and Recheio.

Portugal-based Pingo Doce announced its sales decreased by 8.8% and LFL sales were down 8.5%. The retailer was affected by the limited number of shoppers allowed in stores. At the end of H1 the banner successfully opened three new stores and executed six renovations.

Recheio’s sales declined by 26.7% and LFL sales fell 26.9%. The group claims the decline in sales is due to the closure of HoReCa channel until 17 May.

Colombia-based Ara Q2 sales increased by 16.7%, the LFL terms was +1.1%. The safety measures in Colombia has led to a reduction of 30% less trading hours in Q2 2020 compared to the Q2 2019. Furthermore, the retailer opened 23 new stores during H1 and claims its expansion is slow due to restrictions.

Poland-based Biedronka revealed an increase in sales of 8.7% and LFL performance of 4.8% in Q2 2020. The retailer adapted quickly in April and May leading to strong sales performance. Biedronka opened 34 new stores and renovated 71 existing stores during H1 and plans to continue its expansion plans in H2 2020.

Hebe announced sales decreased by 11.8% with fallen LFL sales of 26.6% in Q2. The retailer claims its performance improved in June with the increase of shoppers returning to high street stores and shopping centres.


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