JRONF - Jerónimo Martins SGPS S.A. (JRONY) Q1 2024 Earnings Call Transcript
2024-04-26 20:55:24 ET
Jerónimo Martins, SGPS, S.A. (JRONY)
Q1 2024 Earnings Conference Call
April 26, 2024 04:30 AM ET
Company Participants
Ana Luisa Virginia - CFO
Pedro Soares Santos - Chairman and CEO
Conference Call Participants
João Pinto - JB Capital
Nicolas Champ - Barclays
José Rito - CaixaBank BPI
Andrew Gwynn - BNP Paribas Exane
Izabel Dobreva - Morgan Stanley
Michal Potyra - UBS
António Seladas - AS Independent Research
Presentation
Ana Luisa Virginia
Good morning, ladies and gentlemen, and thank you for joining this call to present our First Quarter Results. As a reminder, in our corporate website, you can find the results release, a slide presentation, and fact sheet for the period.
I would also like to highlight that in the appendix of this presentation, we have included the next three years' targets for each of our ESG pillars; promoting good health through food, respecting the environment, sourcing responsibly, being a benchmark employer, and supporting surrounding communities.
Our banners started 2024 with strong market positions and prepared to operate against the backdrop of declining food inflation and high cost inflation. We were aware that this combination would further increase competition in the markets as all peers would need to fight for sales in a scenario of fading inflation. This was particularly visible in Poland, where competition has intensified, with a heightened focus on price communication.
Determined to maintain price competitiveness, all our banners grew like-for-like sales volume in the quarter despite having operated with basket deflation in the case of Biedronka and Pingo Doce, or with inflation close to 0 as it happened in Recheio and Ara.
The very good sales performance allowed EBITDA to grow in value. Nonetheless, as anticipated, EBITDA margin was pressured and declined 26 basis points at consolidated levels. We ended March, preserving a solid balance sheet, including a net cash position of €1 billion when excluding capitalized leases.
I would like to remind you that the performance in the quarter was further supported by a positive calendar effect created by the Leap Year and the earlier Easter season, and by favorable foreign exchange when translated in euros.
Given the continuing decline in food inflation and the uplift of the minimum wages in the three countries, 17.8% in Poland, 7.9% in Portugal and 12.1% in Colombia, the imbalance between the evolution of food prices and the evolution of costs was a common challenge in our three geographies....
Jerónimo Martins, SGPS, S.A. (JRONY) Q1 2024 Earnings Call Transcript