LISBON (Reuters) - Portugal's second-largest retailer Jeronimo Martins on Wednesday posted a 59% jump in first-quarter net income as soaring inflation boosted sales, especially in its key market Poland, but also dented its margins.
The company booked a net profit of 140 million euros ($154.71 million) between January and March.
"The Group had a strong start to the year, building on continued solid sales growth despite the pressure of high inflation on consumer demand in the first three months of the year," the company said in a statement.
Consolidated sales in the first three months of the yearrose 23.4% to 6.8 billion euros and consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 20.1% to 446 million euros in the quarter.
The EBITDA margin fell to 6.6% from 6.7% a year earlier, reflecting pressure from investments made in the period, it added.
($1 = 0.9049 euros)
(Reporting by Patricia Vicente Rua; Editing by Andrei Khalip)
Jerónimo Martins, SGPS, S.A. is a Group that holds assets in the food sector, mostly in distribution, with market leadership positions in Poland and Portugal. In 2023, the Group recorded sales of 30.6 billion euros and an EBITDA of 2.2 billion euros. The Group had a total of 134,379 employees and ended 2023 with a market capitalisation of 14.5 billion euros on the Euronext Lisbon stock exchange.
In Poland, Biedronka, representing 70% of Group sales and 85% of its EBITDA, is a chain of food stores and the undisputed leader in food retail and in 2023 it continued to increase its market share. Also in Poland, Hebe focuses on the specialised retail of health and beauty products, managing a considerable assortment of products at competitive prices and an in-store consultation service. At the end of 2023 Hebe opened two stores in Czechia, aimed at putting a face to the brand's presence in this country, where growth will be driven through e-commerce.
In Portugal, the Group has a leadership position in food distribution. It operates the banners Pingo Doce and Recheio, which are market leaders in the supermarket and cash & carry formats, respectively. Pingo Doce is a supermarket chain that has a restaurant area in most of its stores. It has two central kitchens that supply not only these restaurants, but also its in-store takeaway operation. Recheio operates a chain of cash & carry stores and has strengthened its business model with a specialised food service operation, underpinned by dedicated platforms, which essentially serve HoReCa customers with a delivery service. Recheio continues also to expand a network of traditional retail partners under the Amanhecer banner. Jerónimo Martins Agro-Alimentar currently operates in four distinct areas: dairy, livestock farming, aquaculture, and fruit and vegetables. The Group also operates two specialised chains, the Jeronymo coffee shops and kiosks and the Hussel chocolate and confectionery chain.
In Colombia, Ara is a chain of proximity food stores, mostly set up in residential neighbourhoods, offering quality at the best price and combining competitiveness with promotional opportunities in key categories for the Colombian consumer. Also in Colombia, Bodega del Canasto operates as a mini cash & carry, aiming for the traditional market (B2B), offering customised Private Brands and industry brands solution.
JERÓNIMO MARTINS, SGPS, S.A. 
