Jerónimo Martins 2020 Q3 results

Date : 09 November 2020

Lucy Bellotti

Retail Analyst

Jerónimo Martins posted a resilient performance during the third quarter as it announced its results. The retailer said its third quarter saw some return to a new normality, which it underpinned with strict cost control. Biedronka continued to perform well in Poland, showing its flexibility since the beginning of COVID-19. 

Sales performance

Jerónimo Martins’s consolidated sales, in Q3 2020, increased by 2.7% to €4.88 bn, with like-for-like (LFL) sales increasing 2.2%.

Jerónimo Martins’s chief executive, Pedro Soares dos Santos, said the retailer plans to open more Biedronka stores in Poland, to help it drive sales growth during these unprecedented times. Furthermore, the group plans to enter a fourth market, Romania being its most likely destination, although will be delayed due to COVID-19.

Source: Jerónimo Martins

The impact of COVID-19

COVID-19 has affected Poland, Portugal, and Colombia differently, with restrictions imposed individually by country. Jerónimo Martins showed a timeline to demonstrate the different levels of government guidelines the group has had to follow.

Poland

Source: Jerónimo Martins

Portugal

Source: Jerónimo Martins

Colombia 

Source: Jerónimo Martins

Performance by division

Portugal-based Pingo Doce’s sales decreased by 1.2%, while LFL sales were down 2.5%. The retailer was affected by the limited number of shoppers allowed in stores and low traffic in its restaurants, coffee corners and takeaway services. Despite the pandemic, the banner opened nine new stores and refurbished 17.

Recheio’s sales decreased by 17.5% and LFL’s fell 17.7%. The group claims the decline in sales was due to the weak tourism and lack of traffic.

Colombia-based Ara’s sales increased by 10.9% but fell by 1.7% in LFL terms. Safety measures imposed in Colombia has led to a reduction of 16% fewer trading hours in Q3, down from 30% in Q2 2020. The retailer continued to open new stores and added 33 stores over the period.

Poland-based Biedronka increased sales by 9.3%, with a strong LFL performance of 6%. The retailer maintained the momentum from its strong performance at the start of the COVID-19 pandemic. Biedronka has opened 52 stores and renovated a total of 167 store during the first nine months of the financial year.

Hebe announced sales increased by 6.4%, while LFL sales grew by 1.7% in Q3. The retailer was impacted heavily by the closure of shopping centres, but has started to see improvements in Q3. Separately, Hebe closed 48 pharmacies, 20 of which were inside Hebe’s drugstores.

 

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