Jerónimo Martins: 2019 preliminary results

Date : 22 January 2020

Lucy Bellotti

Retail Analyst

Jerónimo Martins has announced its preliminary sales results for 2019. The retailer revealed positive results across all countries where it operates; Colombia, Poland and Portugal. The retailer claims its strong preliminary sales growth provided it with the confidence to continue to drive forward and invest in 2020.

Positive preliminary results

Jerónimo Martins’ consolidated sales grew to €18.6 bn, increasing by 7.5%. Like-for-like (LFL) sales rose 5.3% in 2019. In Portugal, food inflation stayed low at 0.3%. Meanwhile, in Poland food inflation was higher than expected at 4.9% (6.5% in Q4), with Biedronka continuing to adjust to the Sunday trading ban. Separately, in Colombia competition remained strong, but with this offset by continued high shopper demand.

Source: Jerónimo Martins

Divisional performance

Jerónimo Martins is divided into different banners; Ara, Biedronka, Hebe, Pingo Doce and Recheio. The contribution of all banners helped to deliver a positive 2019 performance.

Portugal-based Pingo Doce’s sales grew by 2.9% in 2019 (2.6% in Q4) to €3.9 bn. The increase in LFL terms was 2.5% (2.7% in Q4 2019). The retailer claims the performance was powered by innovative initiatives and improvements it has made to the shopping experience. In 2019, Pingo Doce opened nine stores, which included four convenience stores, under the Pingo Doce & Go banner.

Recheio’s sales increased to €1 bn, a growth of 2.7% (3.2% in Q4). LFL performance improved by 2.4% in Q4 2019, which the retailer claimed reflects the strong value proposition offered to its shoppers.

Colombia-based Ara implemented a successfully strategy; improving its price investment and building a strong commercial dynamic. In euros the retailer increased sales by 30.8% (39.6% in Q4 2019) to reach €784m. Ara ended 2019 with a total of 616 stores, having opened 85 new stores.

Poland-based Biedronka’s 2019 sales increased by 7.9% (10.6% in Q4 2019) to €12.6 bn, despite operating 13 fewer trading days. Biedronka opened 128 stores and remodelled 252 others in 2019. It ended the year with a network of 3,002 locations.

Hebe’s sales increased by 24.9% (24.6% in Q4) to €259m. The group claims the successful performance highlighted the reinforcement of its omnichannel model, which improved its competitive position. In 2019, Hebe added 46 new stores, ending the year with a network of 273.


Retail Analysis newsletter


Keep up-to-date with the latest retail developments shaping the industry. Twice a week, direct to your inbox.

Sign up for our newsletter »