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Jerónimo Martins (highlights from 3Q18 results conference call)

2 Nov 2018


The Company confirmed its 2018 guidance.

Poland: The company said it is not expecting any deterioration in margins for 4Q18. Jerónimo Martins admitted a very tough 3Q18 due to the Sunday ban: the company is losing sales and can’t transfer them to the other days of the week. The company plans to maintain LFL sales driven higher average basket on the other days.

Colombia: The Company confirmed its Capex guidance and although Capex in Colombia is lower than expected, there are still stores to be opened. The company plans to move fast with expansion in Colombia, and is expecting a good improvement over the next year in terms of reducing losses. The company expects to reach break-even after 2020, as drivers of profitability and value increase.

Mercadona: The Company will focus on its value-proposition and store differentiation as a way to retain customers.

Food Inflation and higher wages: Managing the company as a whole to mitigate the cost of increasing wages. When it comes to food inflation, the company is not expecting any improvement, as the food retail sector adjusts very slowly. Higher wages and energy prices are something that has already been flagged previously.

The company plans to launch new warehouses for next year which will allow additional efficiency. Finally, Jerónimo Martins also admitted it has no intention of changing its dividend policy.


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