Jerónimo Martins SGPS S A : Full Year 2023 Results Presentation

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FULL YEAR

RESULTS

INTRODUCTORY

NOTE

This presentation includes in the Appendix, for comparison purposes, the Financial Statements excluding the effect of the IFRS16

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FULL YEAR

RESULTS

CONTENT

1. 2023 FY SNAPSHOT
2. 2023 FY THE CONTEXT
3. 2023 FY KEY FIGURES

1. Income Statement
2. Cash Flow
3. Balance Sheet
4. CAPEX

4. 2023 FY SALES PERFORMANCE

1. Group
2. Biedronka
3. Hebe
4. Pingo Doce
5. Recheio
6. Ara

1. 2023 FY EBITDA PERFORMANCE

1. EBITDA
2. EBITDA Margin

1. 2023 FY FINAL REMARKS
2. 2024 OUTLOOK

APPENDIX

Financial Statements

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FULL YEAR

RESULTS

1. 2023 FY SNAPSHOT (1/3)

€2.2 bn	7.1%
EBITDA	EBITDA Mg
(+17.0%)	(-22 bps )

+12.8%	+448
LFL	New Stores

€345 mn	€2.1 bn
CASH FLOW	NET DEBT

SALES BY BUSINESS	GROUP
AREAS	KPIs

The year was marked by economic slowdown, with consumers increasingly price sensitive

Progressive reduction of food inflation

Sales growth remained a strategic priority. All banners kept prices low, while continuing to improve the offer and shopping experience

Assertive value propositions and low prices amidst a difficult situation for consumers, fuelled strong sales growth and enabled a solid increase of the Group's EBITDA

Lower EBITDA margin reflecting the impacts of

investment in price and cost inflation

Group net cash position (excluding capitalised operating lease liabilities) of 1.2 billion euros

Consolidated pre-taxROIC was 26.8%

BUSINESS

HIGHLIGHTS

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FULL YEAR

RESULTS

1. 2023 FY SNAPSHOT (2/3)

ON CORPORATE RESPONSIBILITY, THE GROUP CONTINUED TO MAKE SIGNIFICANT PROGRESS

• Our nutritional reformulations of Private Brand and perishable products have prevented 130.2 tonnes of sugar, 62.8 tonnes of fat and 25.2 tonnes of salt from entering the market
• 100% of Pingo Doce's Private Brand products, and specialized perishables, are now free from artificial colours and flavour enhancers

• We reduced our carbon footprint by 24%, in absolute terms, vs. 2017 (scopes 1 & 2)
• C.780 stores and distribution centres with photovoltaic panels installed
• Biedronka maintained its star in the European Lean & Green initiative and Pingo Doce achieved four stars, being the first Portuguese company and the fourth European company to do so
• For the 4th consecutive year, we have been evaluated as the world's top-rated food retailer by CDP, as a result of our 'A' in our fight against climate change and for the leadership level 'A-' both in the Water Security and Forests programs

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FULL YEAR

RESULTS

1. 2023 FY SNAPSHOT (3/3)

ON CORPORATE RESPONSIBILITY, THE GROUP CONTINUED TO MAKE SIGNIFICANT PROGRESS

• We invested 312 million euros in recognition measures for employees in Portugal, Poland and Colombia, an increase of c.8% compared to 2022
• We invested 44.2 million euros in internal social responsibility programmes and well-being measures
• Recheio, Pingo Doce and the Group holding were recognized as inclusive employer brands by the IEFP
  - Institute of Employment and Vocational Training

• We maintained our commitment to ensure that, at least 80% of food purchases are sourced from local suppliers, a target that exceeded 90% in 2023
• Pingo Doce was the first food retailer in Portugal to sell antibiotic-free and animal welfare certified chicken

The value of direct support granted to our communities, in cash and in kind, amounted to more than 87 million euros, an increase of c.6% compared to 2022

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FULL YEAR

RESULTS

2. 2023 FY THE CONTEXT

Food inflation declined throughout the period but remained high most of the year driving consumers to stay cautious and price oriented

Poland: Consumers became progressively more price sensitive and promotions-driven. Food retail sector registered volumes decline

Portugal: Consumer demand was fragile following pressure from high prices and high interest rates. HoReCa performance was driven by good tourism dynamics

Colombia: Families were under massive pressure from high prices. Declining volumes and trading down impacted food retail sales

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FULL YEAR

RESULTS

3. 2023 FY KEY FIGURES

3.1. INCOME STATEMENT

LOW PRICES DROVE OUTPERFORMANCE IN ALL MARKETS

GROSS MARGIN PRESSURE DUE TO PRICE INVESTMENT AND TRADING DOWN

SALES GROWTH MITIGATED IMPACT OF COST INFLATION

	(€ Million)		2023	2022	∆	Q4 23	Q4 22	∆
	Net Sales and Services		30,608		25,385		20.6%	8,157		6,992		16.7%
	Gross Profit		6,251	20.4%	5,332	21.0%	17.2%	1,651	20.2%	1,445	20.7%	14.2%
	Operating Costs		-4,083	-13.3%	-3,479	-13.7%	17.4%	-1,073	-13.2%	-939	-13.4%	14.3%
	EBITDA		2,168	7.1%	1,854	7.3%	17.0%	578	7.1%	506	7.2%	14.1%
	Depreciation		-902	-2.9%	-782	-3.1%	15.3%	-242	-3.0%	-201	-2.9%	20.3%
	EBIT		1,266	4.1%	1,071	4.2%	18.2%	335	4.1%	305	4.4%	10.0%
	Net Financial Costs		-174	-0.6%	-162	-0.6%	7.2%	-32	-0.4%	-27	-0.4%	17.2%
	Gains/Losses in Joint Ventures and Associates		-1	0.0%	0	0.0%	n.a.	0	0.0%	0	0.0%	n.a.
	Other Profits/Losses		-79	-0.3%	-95	-0.4%	n.a.	-44	-0.5%	-39	-0.6%	n.a.
	EBT		1,012	3.3%	814	3.2%	24.3%	259	3.2%	238	3.4%	8.9%
	Income Tax		-239	-0.8%	-207	-0.8%	15.5%	-57	-0.7%	-69-1.0%-17.2%
	Net Profit		773	2.5%	607	2.4%	27.4%	202	2.5%	169	2.4%	19.5%
	Non-Controlling Interests		-16	-0.1%	-17	-0.1%	-2.2%	-4	0.0%	2	0.0%	n.a.
	Net Profit Attributable to JM		756	2.5%	590	2.3%	28.2%	198	2.4%	171	2.4%	15.8%
	EPS (€)		1.20		0.94		28.2%	0.32		0.27		15.8%
	EPS without Other Profits/Losses (€)		1.29		1.06		22.5%	0.37		0.32		15.4%

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FULL YEAR

RESULTS

3. 2023 FY KEY FIGURES

3.2. CASH FLOW

SOLID FUNDS FROM OPERATIONS COVERED BIGGER CAPEX PROGRAMME

WORKING CAPITAL INFLOW, THAT IN 2022 BENEFITED FROM A POSITIVE TREASURY CALENDAR EFFECT AND FROM THE INFLATIONARY TREND, ALSO REFLECTED AN INCREASINGLY CHALLENGING FUNDING CONTEXT FOR SUPPLIERS

	(€ Million)		2023	2022
	EBITDA		2,168	1,854
	Capitalised Operating Leases Payment		-337	-294
	Interest Payment		-192	-157
	Other Financial Items		1	0
	Income Tax		-254	-208
	Funds From Operations		1,386	1,195
	Capex Payment		-1,153	-938
	Change in Working Capital		176	535
	Others		-65	-86
	Cash Flow		345	706

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FULL YEAR

RESULTS

3. 2023 FY KEY FIGURES

3.3. BALANCE SHEET

STRONG

BALANCE SHEET

THE BOARD WILL PROPOSE THE PAYMENT OF 411.6 MILLION EUROS OF DIVIDENDS (GROSS 0.655 EUROS PER SHARE)

	(€ Million)		2023	2022
	Net Goodwill		635	613
	Net Fixed Assets		5,533	4,589
	Net Rights of Use (RoU)		3,074	2,420
	Total Working Capital		-4,314	-3,837
	Others		235	161
	Invested Capital		5,163	3,946
	Total Borrowings		765	470
	Financial Leases		102	82
	Capitalised Operating Leases		3,280	2,597
	Accrued Interest		22	14
	Cash and Cash Equivalents		-2,074	-1,802
	Net Debt		2,097	1,360
	Non-Controlling Interests		252	254
	Share Capital		629	629
	Reserves and Retained Earnings		2,184	1,702
	Shareholders Funds		3,066	2,585

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