Jerónimo Martins: EBITDA margin up over nine months, net profit down 14.5%
Over the first nine months of 2026, Jerónimo Martins improved its EBITDA margin in each of its business units. It reached 7.0% at group level, compared with 6.8% a year earlier. The retailer, present in Poland, Portugal and Colombia, published a lower net profit on 28 October 2026.
The gap between these two readings forms below the operating line. It is attributable to higher financial charges, linked to expansion and the appreciation of the Colombian peso, and to an exceptional contribution to the group's foundation following Storm Kristin in Portugal and an earthquake in Colombia. The cash flow for the period turned negative.
Sales up 4.8%, net profit brought down to €414m
Consolidated revenue reached €27.8 billion, up 4.8% (+ 3.8% at constant exchange rates). In the third quarter alone, it grew 4.3%, to €9.53 billion. EBITDA increased 7.6%, to €1.95 billion, and operating profit (EBIT) rose 6.6%, to €1,027m.
Attributable net profit, however, fell 14.5%, to €414m, representing earnings per share of €0.66 compared with €0.77. Net financial charges rose from €243m to €302m, due to interest on capitalized leases linked to the expansion programme and the appreciation of the Colombian peso.
Other profit and loss items reached -€135m, compared with -€66m. They include €40m allocated to the Jerónimo Martins Foundation from 2025 results and an exceptional contribution of a further €40m, without which net profit would be €454m. Excluding other profit and loss items, earnings per share stood at €0.86, compared with €0.87.
In the third quarter, attributable net profit amounted to €154m, compared with €214m. Published earnings per share of €0.24 is below the average of €0.32 expected by four analysts; excluding other profit and loss items, it came in at €0.34.
Biedronka offsets deflation through volumes, Ara accelerates in Colombia
Biedronka, which accounts for 67.9% of group sales, generated €18.9 billion in revenue, up 0.7% (+ 1.3% in local currency). In Poland, food inflation returned to -0.6% in the third quarter, and the store's average basket declined.
Comparable store sales fell 0.4% over nine months and 1.8% in the third quarter, despite volumes up around 5%. However, EBITDA margin improved to 8.2%, from 7.9%, thanks to optimized in-store processes and a more favourable sales mix.
In Portugal, Pingo Doce sales increased 4.1%, to €4.1 billion, but their comparable store evolution excluding fuel was flat in the third quarter. Recheio, whose HoReCa channel was hit in the first quarter by Storm Kristin, posted a 1.5% increase.
EBITDA for distribution in Portugal rose 6.4%, to €306m, for a margin of 5.9% compared with 5.8%. In Poland, the Hebe drugstore chain (1.7% of sales) generated EBITDA of €46m, up 22.3%.
In Colombia, Ara generated €3.2 billion in sales, up 37.9% in euros and 20.6% in local currency, with comparable store growth of 8.2% (11.0% in the third quarter). Its EBITDA rose 62.6%, to €151m, and its margin increased from 4.0% to 4.7%.
The banner opened 85 stores over the period, representing 68 net. During the half-year publication on 29 July 2026, the group had mentioned 200 openings planned in Colombia in 2026.
Net cash reduced to €118m, July guidance reiterated
Cash flow came in at -€183m, compared with + €128m a year earlier. The change in working capital requirements weighed -€517m (compared with -€102m), which the group attributes to deflation and stronger promotional dynamics. Investments made reached €603m, compared with €765m.
Following the payment of €408.5m in dividends, net cash excluding IFRS 16 stood at €118m at the end of September, compared with €467m a year earlier. Including capitalized leases, net debt reached €4.4 billion.
Pedro Soares dos Santos, Chairman and Chief Executive Officer, indicates that the competitive environment remains highly demanding and that no let-up in the pressure exerted by fuel costs on businesses and households is expected.
The group reiterated the guidance presented in its statement of 29 July 2026. Its consolidated EBITDA rose 7.6% over nine months, to €1.95 billion, with margin improvement in each of its business units.
