Jerónimo Martins fires more than 8% after results – Bolsa



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The first quarter results announced by Jerónimo Martins before the opening of the session have a significant positive impact on the evolution of bonds, which have already reached a maximum of more than 12 months.

The shares reached a maximum valuation of 8.79% to 15.10 euros, which corresponds to the highest value since last March.

This positive performance brings Jerónimo Martins' accumulated valuation in 2019 to 41.73%, strengthening the PSI-20's status with a better performance this year.

In a statement sent to the Securities and Exchange Commission (CMVM), Jerónimo Martins announced a net profit of 72 million euros in the first quarter of this year, a figure slightly below analysts' expectations and corresponding to a drop of 14 millions of euros. , 5% over the same period last year.

The company explained the fall in the results with the ban on the opening of Sunday stores in Poland, a measure that affected Biedronka's business.

EBITDA (earnings before interest, taxes, depreciation and amortization) outpaced analysts' expectations, reaching 214 million euros, a slight decrease of 0.6%.

Managing Director Pedro Soares dos Santos reiterated the results objectives and has shown confidence in his ability to "overcome the challenges looming on the horizon and continue his growth over the entire market. long of 2019 ".

The turnover in Portugal and Poland higher than expected

Commenting on these results, CaixaBank BPI pointed out that profits were 4% below its estimates, but that the margins of activity in Portugal and sales in Poland were higher than expected.

Jerónimo Martins' EBITDA was 2% higher than BPI's estimates, which also highlights the positive performance of Recheio's cash & carry, which achieved a 3.7% increase in sales, compared with the 2 % estimated. At Pingo Doce, like-for-like sales increased 3.7% when BPI expected stagnation and Biedronka fell 1.1% while the bank forecast a 2% reduction.

Jerónimo Martins achieved a consolidated business figure of 4,247 million euros, up 1% from the same period last year and according to BPI estimates.

The bank recommends buying the shares of Jerónimo Martins, with a price target of 16.50 euros, and "maintains a positive outlook for the publicly traded company".

In the comments on the results, BPI stresses that, despite the strong increase in bonds this year, Jerónimo Martins still shows a lower performance than the sector in the long term.

For the second quarter, BPI estimates that the results will be a function of Easter and the tax relief implemented in Poland. In addition, "the company's losses in new business should also improve in the coming quarters, which should also contribute to earnings per share growth".

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