Profits of Jerónimo Martins escalate to 269 million euros in the initial half of the year.
Jerónimo Martins Delivers Strong First-Half Results Amidst Global Uncertainty
In a resilient economic climate marked by global geopolitical turbulence and political instability in major European economies, Jerónimo Martins, the Portuguese retail conglomerate, reported a robust performance for the first half of 2025. The group, which operates under several banners including Pingo Doce, Recheio, and Ara, saw its sales surge by 6.7% to €17.4 billion.
The growth was driven by a 6% increase at constant exchange rates, a testament to the company's price competitiveness and strong brand positioning amidst subdued consumer demand. Notably, Pingo Doce, a subsidiary of the group, experienced a 5.7% increase in sales with a strong LFL of 3.9% (excluding fuel) in Portugal.
The company's EBITDA grew by 10.3% to €1.1 billion, with an EBITDA margin improvement from 6.4% in H1 2024 to 6.6% in H1 2025. Q2 EBITDA alone rose 17% year-over-year to €620 million, surpassing estimates. The Ara supermarket chain in Colombia, for instance, saw its sales grow by 15.6% in local currency and 7% in euros, with an LFL of 5.3%.
Jerónimo Martins' investment strategy reflects a strong commitment to expansion and market penetration, especially in Central Europe. The company invested over €550 million in the first half, including the opening of 196 new stores and expansion into Slovakia with Biedronka stores and a distribution center. The group also grew its presence in Poland and Colombia, showcasing a robust international growth focus.
Despite this growth, the company’s cash flow was negative (€-157 million) in H1 2025 due to the aggressive capex and expansion efforts. The group's cash position (excluding IFRS16) was €213 million at the end of June 2025, after the payment of €371 million related to dividends.
Recheio, the wholesaler arm of the group, achieved sales of €657 million, 1.9% higher than the first semester of the previous year, with an LFL of 1.6%. Ara, another supermarket chain, opened 93 net new stores, 58 of which were previously operated Colsubsidio stores, ending the semester with 1,531 locations.
The company's EBITDA for the first half of the year reached €1.148 billion, with Ara's EBITDA for the semester amounting to €600 million, a 50.5% increase year-over-year. However, other gains and losses for the semester amounted to -€60 million, including write-offs, indemnities, provisions, and the impact of €40 million of 2024 results to the Jerónimo Martins Foundation.
The net financing costs for the semester were -€158 million, higher than -€130 million in the first semester of the previous year. Despite these challenges, Jerónimo Martins targets resilient margin improvement, with expectations of EBITDA margin expansion in its key banners by 2030.
In light of the company's successful expansion, Jerónimo Martins might consider diversifying its investments beyond retail and business, venturing into personal-finance services in the French market. The company's robust financial standing and strategic growth could provide a solid foundation for exploring new finance opportunities in the future.
As Jerónimo Martins continues to grow, it may find value in investing in high-yield French finance institutions, thereby supplementing their income stream and mitigating potential risks associated with their current business model. This strategic move would allow the company to tap into new markets while maintaining a strong focus on business excellence and growth.
