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  • Writer's pictureivan de Jager

Jeronimo Martins (JMT) Q3 2023 Results: A Closer Look

In the fast-paced world of business and finance, staying updated on the latest financial results of major companies is crucial. One such company, Jeronimo Martins (JMT), recently released its Q3 2023 results, and the numbers are impressive. Let's dive into the details of JMT's performance, with additional information available in the linked PDFs.


Jeronimo Martins (JMT) Q3 2023 Results at a Glance


- Sales Growth: JMT achieved a remarkable 22.1% year-on-year sales growth in the first 9 months of 2023. What's even more impressive is that this growth rate remained consistent with a 22% increase in the previous 6 months, indicating that JMT's growth trajectory is on a steady course.


- EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) also saw substantial growth, with an 18% year-on-year increase. This figure aligns with the EBITDA growth rate for the previous 6 months, showcasing JMT's consistent performance.


- Earnings Per Share (EPS): JMT reported a 33% year-on-year increase in EPS, reaching EUR0.89 in Q3 2023, up from EUR0.67 in the same period the previous year.


- Cash Flow and Net Cash: JMT is known for its robust cash flow generation. It's worth noting that the company maintains a net cash position, excluding IFRS 16 leases. This financial stability is a testament to JMT's prudent financial management.


- Store Roll-outs: JMT continues its expansion, rolling out stores across its brands in various countries, including Poland, Portugal, and Colombia. This strategic move has contributed to the company's impressive growth.


- Value-Led Strategy: JMT's market position is "value," and it has invested heavily in pricing. This strategy has proven to be effective, resulting in substantial market share and volume growth. However, there's growing pressure at the consumer level, particularly in their largest store chain in Poland, where Like-for-Like growth has been decreasing each quarter.


More Insight


Click below for a comprehensive overview of JMT's performance, key financial figures, market position, and outlook:

Jeronimo Martin - Results9M2023
.pdf
Download PDF • 502KB


A Promising Investment Opportunity


JMT is trading at a historic 18x Price-to-Earnings (PE) ratio. With EPS growing at +33% (or +25% year-on-year if you exclude some one-off gains), JMT appears to be relatively cheap. Its value-grocery positioning in cash retail makes it a defensive investment option.


However, it's worth noting that broker consensus is currently light against the impressive results unless Q4 experiences a significant downturn.


In Conclusion


JMT's Q3 2023 results showcase a company on a growth trajectory. Despite consumer-level pressures, the company's value-led strategy, consistent performance, and strategic expansion are commendable.


For more detailed information, be sure to check out the below PDFs to gain a comprehensive understanding of JMT's financial performance and market outlook.


Release

Jeronimo Martin - Results9M2023
.pdf
Download PDF • 502KB

Factsheet

Jeronimo Martin - Factsheet 9M2023
.pdf
Download PDF • 509KB

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