CONSOLIDATED REPORT

AND ACCOUNTS

FIRST QUARTER

2021

Unaudited

INDEX

Message from the Chairman and CEO - Pedro Soares dos Santos

3

I - CONSOLIDATED MANAGEMENT REPORT

1.

Sales Analysis

4

2.

Results Analysis

6

3.

Balance Sheet

8

4.

First Quarter 2021 Update on Covid - 19 Impact

9

5. Outlook for 2021

9

6. Consolidated Management Report Appendix

11

6.1 The Impact of IFRS 16 on Financial Statements

11

6.2. Sales Evolution

13

6.3. Stores Network

13

6.4. Definitions

13

7.

Reconciliation Notes

14

8.

Information Regarding Individual Financial Statements

16

II - CONSOLIDATED FINANCIAL STATEMENTS

1. Financial Statements

17

2. Notes to the Financial Statements

22

R&A | 1st Quarter 2021

2

Message from the Chairman and CEO

Pedro Soares dos Santos

'This quarter is particularly difficult to compare with Q1 20. We registered an excellent performance in January and February 2020 before being strongly and unexpectedly impacted in March by the first effects of the Covid-19 pandemic.

The resilience and good work in 2020 allowed our banners to enter 2021 with reinforced value propositions and ready to face the uncertain evolution of the pandemic and its impacts.

Supported by the Group's long term vision and strong financial position, and despite the current demanding circumstances, our businesses will take all actions necessary to continue to grow while maintaining our priorities: protecting our teams and clients, cooperating with our suppliers and supporting the communities we serve. At the same time, efficiency projects will continue to strengthen the business models and protect profitability.

Due to the seasonality of the business, the first quarter is the one with the lowest turnover in the year. These results are nonetheless encouraging and reinforce our confidence that all our banners will guarantee consumer preference and deliver profitable growth in 2021.'

R&A | 1st Quarter 2021

3

Message from the Chairman

I - CONSOLIDATED MANAGEMENT REPORT

In comparing first quarter 2021 with first quarter 2020, it is important to recall that the companies had an excellent performance in the first two months of 2020 before being strongly impacted in March by the first effects of the Covid-19 pandemic.

Strong sales performance driving a solid start to the year

1. Sales Analysis

(Million Euro)

Q1 21

Q1 20

%

% total

% total

excl. FX

Euro

Biedronka

3,388

70.8%

3,262

69.2%

9.2%

3.9%

Pingo Doce

929

19.4%

936

19.9%

-0.8%

Recheio

173

3.6%

214

4.5%

-19.0%

Ara

237

4.9%

235

5.0%

10.5%

0.6%

Hebe

57

1.2%

64

1.4%

-6.3%

-10.9%

Others & Cons. Adjustments

2

0.0%

3

0.1%

-39.3%

Total JM

4,786

100%

4,715

100%

5.7%

1.5%

Group sales were €4.8 bn, 1.5% above first quarter 2020 (+5.7% at constant exchange rates), with like for like (LFL) of 3.2%.

Sales (Million Euro)

LFL Growth

+1.5%

(Q1 21/Q1 20)

Q1 20

Q1 21

4,715

4,786

+3.9%

3,262

3,388

6.5%

3.7%

3.2%

0.1%

-2.7%

-0.8%

936

-19.0%

929

+0.6%

-10.9%

214 173

235 237

-19.3%

64

57

3

2

Hebe

Recheio

Biedronka

Pingo Doce

Recheio

Ara

Hebe

Others &

JM

Biedronka

Pingo

Ara

JM

Cons.Adjust.

Consolidated

Doce *

* Excl. Fuel LFL: -1.6%

In Poland, consumers continued to prefer shopping in proximity while looking for quality and price opportunities.

Despite a negative impact on impulse buying, the confinement measures benefitted food retail sales, as the closure of schools and restaurants resulted in an increase in the number of meals prepared at home.

The operating environment remained highly competitive and promotions-driven. Consumers reacted positively to innovative and strong commercial campaigns.

Food inflation declined to 0.6% in first quarter. This decline was mostly driven by products such as meat that had registered substantial price increases in first quarter 2020.

R&A | 1st Quarter 2021

4

Consolidated Management Report

Biedronka LFL

11.1%

6.9%

6.5%

6.0%

4.8%

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Hebe LFL

1.7%

0.1%

-1.7%

-12.5%

-26.6%

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Biedronka remained focused on guaranteeing the preference of consumers, combining price leadership with an evolving offer.

In the ongoing pandemic situation, the banner continued to respond to consumers' need for availability in a safe environment with flexible opening hours.

Sales grew 9.2% in local currency, including a LFL of 6.5%, delivering another quarter of solid market share increase.

Despite negative basket inflation, the LFL benefited from a positive Easter impact, boosted by Biedronka's campaigns designed for this season.

In euro terms, sales reached €3.4 bn, 3.9% ahead of the previous year.

Executing its investment programme for the year, the Company opened 21 stores (15 net additions) and remodelled 79 locations during the quarter.

Hebe registered sales of €57 mn, 10.9% below first quarter of 2020 (-6.3% in local currency). Excluding the pharma business, closed in July 2020, sales increased 5.4% with a LFL of 0.1%.

Against a strong comparable in the first two months of last year, sales were impacted by the closure of shopping malls during January 2021. In March, with the opening of the shopping malls and a comparable that already reflects the outbreak of the pandemic in 2020, sales recovery was strong.

The online sales are also contributing to the top line performance having more than tripled vs. first quarter 2020.

In Portugal, consumer demand remained soft and food inflation decelerated from previous months to 0.9% in first quarter 2021.

Pingo Doce LFL*

3.5%

-1.5%-2.0% -1.6%

-8.5%

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Pingo Doce continued to be impacted by restrictions on the number of people inside the stores, which particularly affected the first two months of the year. March, already with positive performance, reflected an easier comparative in the last weeks of the month.

The banner maintained a strong promotional policy having in mind the consumer needs in challenging times.

Sales reached €929 mn, a reduction of 0.8% due to the gas stations' negative performance. Excluding fuel, sales grew 0.3% versus first quarter 2020 with a LFL of -1.6%. It is important to flag that this performance incorporates negative basket inflation.

The banner opened two new locations and carried out five renovations.

* Excl. Fuel

R&A | 1st Quarter 2021

5

Consolidated Management Report

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Jeronimo Martins SGPS SA published this content on 25 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2021 17:36:03 UTC.