The following is a summary of the Jerónimo Martins, SGPS, S.A. (JRONY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Jerónimo Martins achieved sales of over €30 billion and EBITDA of over €2 billion in 2023 with net profit exceeding €2.5 billion.
The company faced increasing cost pressures impacting EBITDA margins, with a concerning trend of rising cost inflation and dropping food price inflation.
Sales growth was reported at 20.6%, exceeding the €30 billion mark. In constant exchange rates, the increase was 18.1%.
Despite margin pressure, a sales-focused strategy allowed a capital turnover increase with the pre-tax ROIC reaching 26.8%.
The firm retained a strong balance sheet, including a net cash position, excluding IFRS 16, of €1.2 billion by the end of December.
Net results for the year increased 28.2% to total €756 million, and cash flow generated in the period reached €345 million.
Board of Directors plan to propose a distribution of a gross dividend of €0.655 per share, totalling €411.6 million.
Business Progress:
Over 1,750 stores were opened from 2019 to 2023, mainly in Poland and Colombia, contributing over €13 billion in sales.
Biedronka, as the primary growth engine of the company, has become Poland's largest employer and grew sales by over 80% in five years.
The firm plans on continuous investment in business expansion, quality of logistics infrastructure, and workforce.
In 2024, an expansion to Slovakia is planned with the opening of the first Biedronka store.
The business executed an ambitious investment program, finishing the year with improved store networks and logistic infrastructure.
By the end of 2024, Biedronka aims to add 130 to 150 stores to its network as well as remodel over 300 locations.
The expectation of increased competition has highlighted the need for maintaining competitiveness and price leadership and investing effectively in their supply chain.
More details: JERONIMO MARTINS SGPS UNSP ADR EACH REPR 2 ORD IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.