RELEASE

FIRST QUARTER

ADDITIONAL INFORMATION RELATING TO THE PERIODHERE

FINANCIAL CALENDAR*

Dividend Payment: 18 May 2022 H1 2022 Results: 27 July 2022 9M 2022 Results: 26 October 2022

* (All releases will be published after the closing of the market)

This release includes, in Appendix 1, for comparison purposes, the Financial Statements excluding the effect of the IFRS16.

INVESTOR RELATIONS OFFICE

MEDIA RELATIONS OFFICE

+351 21 752 61 05

+351 21 752 61 80

investor.relations@jeronimo-martins.com

comunicacao@jeronimo-martins.com

Cláudia Falcão:claudia.falcao@jeronimo-martins.com

Rita Fragoso:rita.fragoso@jeronimo-martins.com

Hugo Fernandes:hugo.fernandes@jeronimo-martins.com

Nuno Abreu:nuno.abreu@jeronimo-martins.com

Jerónimo Martins, SGPS, S.A. | Head office: Rua Actor António Silva, n. º7, 1649-033 Lisbon

Share Capital: Euro 629,293,220.00 | Registered at the C.R.C. of Lisbon and Tax Number: 500 100 144www.jeronimomartins.com

Q1 2022 RESULTS | RELEASE

STRONG

PERFORMANCE OVERVIEW & KEY DRIVERS

PERFORMANCE FROM

ALL BANNERS IN A CONTEXT OF HIGH

In an environment of great uncertainty, amplified by the Russian invasion of Ukraine at the end of February, the Group's remarkable growth in the first quarter of 2022 reflects the competitiveness, quality and assertiveness of all banners' value propositions.

AND INCREASING

INFLATION

Comparing Q1 22 with Q1 21 requires some caution because the first quarter of 2021 was, on one hand, marked by greater pandemic severity and, on the other hand, benefitted from sales related to the Easter season. But it is clear that the Group's banners performed strongly in a context of increasing and generalised cost pressures.

Although weakened by rising inflation, consumer demand in Poland remained positive at the beginning of the year. The war in neighbouring Ukraine sharply reduced consumer confidence in March and led, initially, to some stockpiling of food items. In addition, a large number of Ukrainian refugees entered Poland. Living up to its market positioning, Biedronka maintained its strong commercial dynamic, ensuring consumer preference throughout the quarter and delivering sales growth of 15.4% in local currency.

Without the pandemic-related restrictions that marked Q1 21, Hebe continued benefiting from its omnichannel strategy and registered solid sales growth of 28% in local currency. The banner's online sales accounted for 16% of total top line, increasing from 14% in Q1 21.

Despite the first signs of inflationary pressure over real household disposable income in Portugal, Pingo Doce grew sales by 6%. Recheio improved its top line by 31.6%. Sales of our wholesale banner are now back to pre-pandemic levels (2019), benefiting from the recovery of the HoReCa channel and the resuming of tourism activity.

The significant increase in food inflation in Colombia, which reached 22.9% in the quarter, has further worsened the fragile consumption environment. Ara implemented an intense promotional strategy that gained great acceptance, generating remarkable sales growth (65% in local currency).

The good sales performance in all businesses allowed the Group to mitigate the effects of cost inflation, which increased from March onwards. Together with the very favourable evolution of the EBITDA margins of Ara and Recheio, this performance contributed to maintain the Group's EBITDA margin at 6.7%, in line with Q1 21.

In Poland, since the first day of the war in Ukraine, we focused on ensuring adequate supply chain response and supporting the remarkable efforts of the entire Polish population in welcoming Ukrainians who crossed the border. This support, translated into direct donations and solidarity measures, amounted to c.9 million euros in the quarter, registered in Other Profits and Losses.

Cash flow was negative at 196 million euros (-21 million euros in Q1 21) mainly due to three factors. First, business seasonality; second, the change in working capital relative to an exceptionally strong position in December 2021, which benefited from the large number of store openings just before the end of the year; and third, the higher capex payment related to the mentioned store openings. The Group registered a net cash position (excluding capitalised operating lease liabilities) of 803 million euros by the end of March 2022.

MESSAGE FROM THE CHAIRMAN AND CEO PEDRO SOARES DOS SANTOS

'The perseverance of our people and consistency of the work carried out by our banners over time ensure leadership in price and quality. They are the main forces behind the Group's solid performance in the first three months of the year. This work, which we have honed since the beginning of the pandemic, is now even more critical in the context of rising inflation aggravated by the war in Ukraine, which will hurt the purchasing power of consumers in general and that of the most disadvantaged socio-economic groups in particular.

Two months after the start of the military offensive, it is clear that the upward pressure on the prices of food, energy, and fuel will be much higher than expected at the beginning of the year.

Despite the uncertainty blurring the horizon, we have no doubts about our first strategic priority - to do our part in a collective effort to help control inflation. We will achieve this goal by defending low prices and investing in strong promotional campaigns to create valuable opportunities for families, strengthen our banners' competitive positions, and protect volumes growth.

I am confident that we will be able to follow this path. At the same time, we remain committed to being good corporate citizens responding responsibly to the expectations of our employees, our suppliers, and the communities where we are present.'

OUTLOOK 2022

There is significant uncertainty associated with the developments of the war in Ukraine and the evolution of the Covid-19 pandemic.

Since the beginning of the military conflict, inflationary pressures on food, energy, and transport have escalated. In addition, volatility of Eastern European currencies has substantially increased.

With rising food inflation and interest rates pressuring real disposable household incomes, it is even more critical that price competitiveness and creating saving opportunities through promotional activities remain central to our Companies' agendas.

In line with what we mentioned a little over a month ago, this effort to contain prices will be implemented, even if cost inflation places additional pressure on the percentual margins of our banners.

We, therefore, maintain the outlook for the year as presented on March 9, 2022, when the 2021 results were released.

PERFOMANCE

POLAND

ANALYSIS BY

BANNER

Despite rising inflation, the Polish consumption environment remained resilient in Q1 22, partly supported by an increase in the minimum wage.

Food inflation reached 8.7% in Q1 22 (6.7% in Q4 21), already incorporating the reduction to zero of the VAT rate on essential food products implemented in February.

Biedronka maintained its intense commercial activity and continued to benefit from the sales momentum built in previous years.

In Q1 22, sales in local currency grew by 15.4% and LFL was 12.2%. In euros, sales reached 3.8 billion, 13.4% above Q1 21. Higher basket inflation contributed to the performance in the period.

Volume growth softened since the beginning of the year. Still, the Ukraine war led in March to significant volume increases in certain products, driven by stockpiling, donations, and the influx of Ukrainians into Poland. It is worth mentioning the speed of Biedronka's solidarity response. The Company has been, since the start of the Ukraine invasion, at the forefront of food and logistical support to non-governmental organizations who provide assistance to refugees on the ground.

Biedronka's market share grew again during the period, confirming the consumer's preference for the banner.

EBITDA grew 11.4% (+13.3% in local currency). The respective margin was 8.3% (8.4% in Q1 21). Solid sales performance, which was boosted by the peak in volumes, allowed Biedronka to mitigate the significant increase in costs that occurred in March.

Biedronka inaugurated 16 stores (11 net additions) in the quarter and remodelled 61 locations.

Hebe recorded a strong performance, recovering against Q1 21, a period strongly affected by the pandemic.

The banner grew sales by 28.0% in local currency, with a LFL of 20.8% (LFL includes online sales).

In euros, sales reached 72 million, 25.9% above Q1 21.

The sales rebound drove EBITDA to increase from 1 million euros in Q1 21 to 4 million euros in Q1 22. The EBITDA margin increased from 2.6% to 5.2%.

2021

2022

Hebe opened three stores in Q1 (one net addition).

PORTUGAL

In Portugal, the absence of pandemic-related restrictions and resuming tourism contributed positively to the operating context, especially regarding the HoReCa channel.

Rising food inflation, which reached 5.2% in Q1 22 (1.6% in Q4 21), and increasing energy and fuel costs, pressured real household disposable income.

Pingo Doce LFL (excl. fuel)

7.3%

-1.6%

4.4% 3.5%

Pingo Doce maintained a robust commercial dynamic to defend its competitiveness and the relevance of its value proposition.

Sales reached 985 million euros, growing 6.0% versus Q1 21, including LFL at 3.5% (excluding fuel).

Q1

Q2

Q3

Q4

Q1

In the quarter, Pingo Doce opened two stores and closed one location.

2021

2022

The combined EBITDA of Pingo Doce and Recheio reached 68 million euros, 12.8% ahead of Q1 21. The respective margin was 5.6% (versus 5.5% in Q1 21). Recheio's strong sales growth allowed for improved operational leverage despite the investment in promotions and the cost inflation registered in both banners.

Recheio registered a strong sales recovery relative to Q1 21, a quarter strongly affected by the shallow tourism flow and the impact of containment measures on the HoReCa sector.

Sales grew by 31.6%, with LFL at 32.1%, reaching 228 million euros and recovering to the pre-pandemic levels of 2019.

COLOMBIA

In Colombia, food inflation, which stood at 22.9% (15.4% in Q4 21), continued to increase significantly, exacerbated by ongoing difficulties in the national supply chain. High food inflation is exerting significant pressure on households' real disposable income.

Ara LFL

Ara remained committed to limiting food price increases through strong and relevant promotional campaigns for Colombian consumers, continuing to gain their preference in the neighbourhoods where it operates.

Sales in local currency grew by 65.0%, including LFL of 39.5%. In euros, sales reached 382 million, 61.3% above Q1 21. Basket inflation contributed to the performance despite being lower than the country's food inflation.

Sales growth improved the Company's EBITDA margin, which stood at 3.2% (1.1% in Q1 21). EBITDA amounted to 12 million euros versus 3 million euros in Q1 21.

2021

2022

The banner opened 14 stores in the quarter (13 net additions).

CONSOLIDATED

FINANCIAL HEADINGS

Net Financial Costs amounted to -45 million euros, broadly in line with Q1 21. These include recognition of currency conversion losses of -4 million euros relating to value adjustments in the capitalisation of operating lease liabilities in Poland denominated in euros (-6 million euros in Q1 21).

Other Profits and Losses were -13 million euros, including donations to support the efforts of non-governmental organizations helping the Ukrainian people.

The Investment Programme reached 99 million euros in the period, of which c.50% was allocated to Biedronka.

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Jeronimo Martins SGPS SA published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 17:22:05 UTC.