EUROPE: Select H1 Results In Brief (Jeronimo Martins, DIA, Magnit)

The Jeronimo Martins and DIA groups have reported strong growth for their fiscal second quarters and first halves, but the Magnit banner has suffered.

Jeronimo Martins saw its second-quarter net profit jump up 11.8% to €95m, with EBITDA up 3.5% to €204m, while sales grew to €3.6bn.  The results meant its first-half profit was up 15% to €172m, with EBITDA up 7% to €388m, and sales up 5% to €7bn.

In Poland, the Biedronka discount banner saw sales rise by 10% in local currency terms for the half, while the Pingo Doce supermarket banner in Portugal reported a 4% increase.  The Recheio cash & carry banner saw sales grow by 3.6%, while the Ara and Hebe banners continued to grow rapidly.

In Spain, the DIA hard discount banner saw second-quarter sales grow by 13.3% to €2.2bn, on like-for-like growth of 9.7%, even as adjusted EBITDA was up 7.6% on a constant-currency basis.

The results meant first-half sales were up 10.7% to €4.24bn on a constant-currency basis (-2.3% reported), while adjusted EBITDA rose by 6.8% on the same basis to €267m. Sales in Spain were up 2.6%, but those in Portugal declined by 1.7%.  Meanwhile, sales in Argentina were up 37.6% on a constant-currency basis, those in Brazil grew by 17.3%, and in China they rose by 4.9%.

Russian market leader Magnit lowered its full-year forecast for sales growth, after reporting weak first-half results.

Revenue for the period was up 14.7% to 454.8bn roubles, with net profit was up 3.3% to 26.1bn roubles.  The group recorded strong sales growth at its drugstore (+80%) and wholesale (+86%) formats, with additional growth coming from its ‘magnit family’ stores (+35%) and its convenience stores (+14%).  However, its hypermarkets recorded a modest decline.

Magnit said it now expects full-year revenue to rise by 14%-16%, down from its earlier forecast of 17%-18%.