Jeronimo Martins: profit falls on rising safety costs

(CercleFinance.com) - Portuguese retailer Jeronimo Martins reported a 44% drop in first-quarter net profit due to the effect that the coronavirus pandemic has had on its operating costs.


Net profit fell to 37 million euros in the first three months of the year, from 67 million euros a year ago, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 0.4% to 309 million euros, the group said.

Jeronimo Martins - which runs Poland's leading food retail chain Biedronka - said the estimated costs incurred to guarantee the safety and sustainability of its operations amounted to 15.5 million euros in the month of March alone.

Even though first-quarter sales rose 11% to 4.7 billion euros, the supermarket group said that it is hard to predict the scale and depth of the effects of the pandemic, and withdrew its full-year guidance.

It will will propose a reduced 30% payout of 2019 earnings as a dividend, instead of 50% previously announced.

Jeronimo Martins' shares fell 11% after the results were announced, well behind the broader Lisbon market, whic is down 3.3%.

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