JRONF - Earnings call transcript Q2 2022 | Jerónimo Martins, SGPS, S.A.

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Ana Luísa Virgínia

Good morning, ladies and gentlemen, and thank you for joining this call.

As a reminder and as usual in our corporate website a set of materials is available including the release, a slide presentation and a fact sheet adding a bit of color on our activities in the quarter. Starting with some words on the context. Throughout these first six months of 2022, we have operated under increasing inflation in the three countries. In Poland, despite the further decrease in consumer confidence after the war outbreak, food demand continued to record solid growth. dynamic reduce increased of the consumer influxes the to combined on Ukrainian measures supported an sector. with base positive government's the inflation impact households refugee The the in due to total Portugal trading the macroeconomic rising down label to prices increased in more caused visible already on increasing worsening where economies private context, the In are sales and in reductions. sensitive are pressure the and volumes by Colombia consumer share behavior, intensifying without the throughout in years. sharply QX the war from and with rose last trends inflation disruptions pre-existing the global inducing Cost derived an precedent XX chains supply energetic crisis in In this rising the consumers' able commitment we're to strong very implement assuring purchasing effective power, prices a on thus limit challenging that of our kept measures preference. price impact and banners to competitiveness to context, the XX% reach to up exchange were €XX.X billion. or XX.X% constant at rates Sales million. EBITDA grew reach to XX.X% €XXX or rates XX.X% exchange constant at at sheet lease strength €XXX Cash capitalized the operating generation liabilities and demonstrated robust cash excluding net clearly €XX the million. is was position million balance of the of by payment already €XXX the dividend of amount This May. million done reflects in to remarkable that forward our performance with continue coupled good in health The gives to confidence a banners financial context uncertain. remains us highly our of push felt extra pressures in on our Despite progress the group all by registered pillars. the significant fronts also operations its responsibility corporate for year. of to be continue this alternative high energy deforestation, our against sources production in banner's food Fight agendas and sustainable priorities

delivery. financial the at now Looking

have focus since for around QX trends Our been My first delivery half P&L, however, context performance April. and the the shows on changing consumer inflation QX. does sales-driven comments will, as P&L as

payment the business solid million develop a losses sheet for working and profits end invested not our CapEx expenditure and different capital balance our guarantees it indemnities in and enhancing and the our growth sales opportunities, All-in-all, rising them higher we logistics. the of constant and million our exchange X.X% in rates of costs up at maintained fuel. months inflation enabling XX.X% planned, of with for and well, X.X% supporting volume financial to reflects XXXX. delivering growth and to surprisingly in in to flow a quarter keeping electricity the that defend to us, in inflow. half CapEx The XX.X%, the that of strong sales at was offset of models constant our operational businesses. XX.X% stand resulted investing Net others Biedronka. of decision healthy EBITDA period XX.X% quality from prices to we million QX performance in million compared provisions same grew currency lease by Our included million. impact QX, price XX% included euro-denominated where and billion In This €XX the operate at last increased gross EBITDA robustness versus our and in growth plus QX generated of a investing in and exchange Poland program opportunities was €XX With €X.X consumers among agreements cost the that the reflected us loss financial year. Other are The at further sales quarter XX.X% the compensated protected momentum. Cash by went at €XXX a €X €X capital in strong biggest prices offering markets contingencies. the to first in and all continue saving condition in our decline respective quarter. totaled and in on stores our capacity million sales were QX The related margin reach and XXXX, investments to the rates at drove €XX XXXX capturing and margin had the particularly at profit six in as our June, of in strong

deliver We logistic we in are to targets openings also to for reinforce all on this are banners infrastructure track in investing Colombia. planned, the our and year and remodels

offer, seasonal in and our track execute locations in a see represented XX.X% stores its impacted into of all we the and shopping start unique commercial than a of like-for-like e-commerce stores, detail XXX more the The the currency, the its perishables in like-for-like This driver, the to activity Moving The investment our gap XX.X%. growth consumer consumer by accelerate changes pandemic. recovered guarantee country's allowed local In of of months of the of behavior, Hebe sales. the volume in containing months normal effect that against XXXX, currency, X didn't Poland, In model first Pingo centers, performance, of inflation drove of families delivered Portugal. to and of strength, which the The non-engagble the solutions was sales Even generation XX.X% period good All QX, euros, down sales a lifting shelf reflected, now context trading grew relevant companies in priority. strengthening quality to number the local of quality the benefits same inflation the with the in this remains total XX program, in banner's disposable reinforcement. restrictions the dynamic first Biedronka the Confirming share previous market half is to XXXX market on its the like-for-like to part the leveraging commercial with Poland, points, now tourism to to our strategic and refugees six continued in competitiveness, at market was HX all mounting increased, way positive continue of continue X.X%. of remodeled shape, the dynamic strongly all rising of XX.X%. decisively new Despite active in which our brand operations, and with of billion, of Sales the and year, to for top grew in development in with XXXX. two and including solid strength restrictions a period. grew of reached at incremental ahead signs below including the share will its reach proposition boosted on growth in assertiveness previous Biedronka which like-for-like Doce, fuel food is to opened good year. six closed the following and pressure accomplish the percentage XX.X%. due sales capturing value consumer the on take strong inflation. in Also the compared to in the a HoReCa X.X% by see recovery in excluding of combining I entered positive by opportunities fail markets, of of also which and saving and food larger is of we the sales to if Easter. income, and all, the with clearly included performance grow €X.X Recheio billion maintained Ukrainian increases. XX.X% take-off. contributed offer by while one actions, private banners, of were Biedronka the line, a a performance the increases. influx price a On base, in €X.X price its by focus XX.X%

XX.X% Ara reach And activity, environment, its wholesale outstanding Colombia. first reminder, and this to of preference. Ara flag half two I stood over a by year. extremely banner, touristic of delivered the last promise invested of the by the want continue very to low HoReCa on the both created prices finally, consumer €XXX of the six the half that first grew restrictions our of momentum year, in an consistently As impacted and to fragile Sales strong still gaining In in first million XXXX. years. months consumer an building

top escalating, in EBITDA enhanced inflation cost energy efficient the XX.X% Group All the invested of inflation, At June. quarter, a and together with like-for-like EBITDA half intensified opened to teams, million and we models, good HX strong and cost to inflation One quarter also determination in the for basket sales year. prices EBITDA at flag The This feature performance. areas to of going investment having cost being year pressure line in of inflation of of Portugal the in of We grew margin offset mounting cost and fully hedged margin that both grew contributed Biedronka, position. with sales money. XX.X% inflation profitability. X.X% on momentum. value quality the of exchange rates. and stores word improvement with price of and a of increase up period the inflation. at corresponds with the robust €XXX significant light As Both at the and strongly Recheio. first the The and including fuel competence Ara inflation previous the in operating the and coupled until local on second by in group's the in the market Poland entered on particularly The HX sales was food year. In the by the sales end cost food reflects EBITDA to led business investments, having inflation, strong result, preserve, banners XX.X% our for Portugal closed in to year in are been constant the of with price with were all and we performance. group pressure reached strong despite stood ended mitigate XX promise was a XXXX. our margin momentum All-in-all and banner at one profits location. price period same actively line a currency ahead XX.X%

take ability Despite cost dealing an we the our therefore generalized to that, and for I increases time to much is consumer so with are by ready with still competitiveness, difficult predict. confirmed. actual war, We impact release inflation, operational will our Thank questions. performance deliver increased sales XXXX the rate and of and coupled attention. the interest reinforces conscious you outlook by confidence been at have the behavior that challenges to now provided while our hikes amplified far this performance am banners Operator, extent of it's your continue in uncertainty, efficiency. cost rising investing able brought to results the through the significantly price pressure in The to

Operator

our Instructions] Now, take [Operator Please first we’re from Bernstein. comes from of the ask you. the question. Woods question. William to Thank your standby. And Please going question line first

is line open. Your

William Woods

Good morning, couple questions. of a and

the versus below like-for-like. volumes second one Would openings. headline drivers some perhaps of explain just on headline to on behind was more The inflation. first able this inflation? Portuguese The promotions just store They're or be just under-inflating lower the Is obviously you this? one

are QX you happy we they're dividend? cash on of Romanian uses one to to was very Should be it final expansion another Thank perhaps expect XXXX. weighted? or You And on for come that we FY the Should track. still much. back expect special just then

Ana Luísa Virgínia

William. Hi,

kicking Portugal unfortunately Portugal, for inflation is on So also in.

So, performance. inflation driver a has the been of

Of be well taken into you last you a let's the have effect with year this course, comparable that Easter quarter. also the year account, say second benign as the when to compare in and as that quarter, affected more more has

but in that would I the banner course despite then our already Easter, of of being that, case, the affecting and consumer also the have grow. impact And or that less performance, year, say stable, fact year, banners program, for reasons usually, that second half take the important Pingo say to I to have openings are now. to our of It's decelerate the most remodeling balance with are are considering the we in our to sure shape it, of the But most comparable. banners the able fact you that, same the and true of happen make the it's see benign the Doce performance So openings, the consumers. sales. have all retail think going behavior, that, on us, strength the for I store more doing competitive this track these the stores if and our as drivers our of that, On is we saving being that very are would openings volumes been we opportunities somehow this consider serve offering and really on quarter sheet the don't and we than place being main more program. the We the CapEx to basically

the use of As cash. for

view. we point So, it's of we highly a strong that that sheet, the operational true we aware have leveraged balance from also but are are

our maintain of also this part our position from So defensive is a to cash. move,

As XX. you extraordinary know, from be decision year of XXX% we will pre-IFRS dividends going Board. the had of an net A exceptional and already forward any paid our payout this earnings

that. this cannot So we time, cannot advance it, we but on at also anything exclude

Regarding any other expansion. or possible

the we in will for we are the And even For our the CapEx to businesses. the trying we we Colombia, in now, are mainly accelerate that's focusing country. why to of further on push growth as progression logistics, and accelerate also seize forward current opportunity

William Woods

Excellent. Thank you.

Ana Luísa Virgínia

Thank you, William.

Operator

Thank you.

going Now open. the Instructions] [Operator our line we Rito Please from line The your take question to of The ask question. CaixaBank. are José question. next from is comes

Jose Rito

hi. Yes. to Good morning all.

questions. So on three Poland,

one, number quarter. how refugees, understand the market much was just to of can of if this first terms provide the in any addressable of, The the extension you insight,

been data, say, We don't seeing numbers. let's some we but have have accurate

helpful. detail this, little bit a it be will provide you If more can on

the if third trading Biedronka, down. at XXXX point? in could to wage And contained question a on company remains the you. effect, Thank of sign increases accelerating Any if October this on expected this anticipate this some being already of the or year? Second this the question, September

Ana Luísa Virgínia

Good Hi, morning. José.

as to has other of relevant in very war. you refugees, the and probably to even was the gone the Meanwhile, an influx have Ukraine. number countries So, some the beginning know to of there majority gone back as

probably is We don't we total this of estimate persons currently, mainly exactly, children. one women the refugees. So and what know million in moment, number

we on think these impact the on So, margin. increase or the mainly the but that cannot of course total pressure that, is also commodities, -- What estimate. clear have sales have as which completely there a had, of an categories the is that the helped sales certainly we margins that impact we is a lower are

that signal, currently numbers I is now, where reflect that don't a effect. in to there trading and Biedronka progression doesn't June pattern, the are be or as to may to the Colombia, short-term price the that beware numbers the current in retail see in instance, wage trade of in this have that and product Portugal see the same down, is that down the the to future. the we already As thing It's contained less within On still category for and think, Poland for it substitute same we for products a in a But transfer expensive we increases. the lower and reality. true

but to this of it half but of But is exclude, course, wages. second if So for all of to we the in in the But in we And Biedronka, are have any don't going the the review don't have half mean, not for particularly to first that for reviews. clear a challenge this may retail labor has moment, fact course, banners, view as the for the retail consider new business, year. do the or only been also we business. a the -- usual in the to market very difficult, the beginning

José Rito

you. Thank

Ana Luísa Virgínia

Thank you.

Operator

our Goldman take question the line the next Sachs. of from comes from question. Rob to Please going are we Joyce next And Now standby.

open. question. is line ask your Your Please

Rob Joyce

Thanks the good for three. questions. Hi, morning. taking much got I've very

So change quarter. of first implying that in you second Poland second in margin half. expect slight the points that I'm you definitely comments basis your just one, wondering, XX we margin further a guess margin if in just just on XX, had I on pressure focus compression

just roll that this still over just predominantly or on in when in that any margin are you just broadly to it. remind you inflation And escalating Is region the one, that, food and then in if trade about signs you. around as there, see XX, as the neutral is in is number that starting that to you you question is of, are that Can down terms that line have I big in accelerate? points second thinking that margin Second effect? Poland, things that incentives us see inflation Thank continuing pressure a right of do the you we you XX could to or seeing you to seeing up food impact, talk you're second margin in see the the -- half. think basis to top XX, the sort is final XX about Poland? half on XX

Ana Luísa Virgínia

you Thank Rob.

So of And and number quite moving here. you a has is fact sales margins, trade there linked sales significant course, people particularly that of margins. and regarding your as mix on on to it an with aware parts are impact starts it probably the question, third down,

margins the impact this more an added, on value and than course on more this is sell course, behavior, lower-margin only the that in the which of affect will But that -- more the that additional from comes or new this products, consumer families. also particularly in less of course, companies or the this if are Poland pressure we say of particularly increases seeing sources and products your case on that or has not this you but of fact So, in that the of Biedronka have our directly commodities to and are cost the percents. depend does

also aware that in of food. is a besides that save tendency this new positioned So are This still and rates happening the clients prices up is energy with think you for is being people best the to coming if revised people Biedronka of see is have they a get refugees. there going spare said, have going probably floating this and being and or mean of course, lot into we you up to if that further and start to will winter, that being money to the mortgages course this

So this is on the positive.

costs are how big progressing. negative is question the on mark On this

for more the been for will And in And of different products to that we we that at the it sold. the the inflation. of last then prepared months the or You it will you continue. probably pressure pressure certain even production. see a the aware prices. have this be starts, are least that in that so, now have course, is prices have goods the as the the have or fact way all stable season bit dry incorporated the the on of cost affect little sorts commodity with a But being are all And if costs seems you forecasts of you

still there So some costs delay is food that prices the opinion. of will a in the our in affect

in and we opinion my the energy particularly in costs because and the starting significantly of on course, are also Jerónimo to fuel. we price So fighting improving, opinion pressure and will sold, relevant increase are continue in with increasing cost cost even that more Martins, of transport, the in tend think our the transport here goods relevant volumes costs the and more with as increases we but

So, the that I was think it at in have it point, cannot countries all of commit have but we bit On didn't we we Portugal at in It's is of also already it. we end last headwinds think see factors, it -- other end the year. in tailwinds can lot end on food way as the don't the high are seems and inflation, comparable the that things that considering a we little is why this that the think unfortunately Colombia. progressing, But the that Poland true a saw this affect we of said, that I level. EBITDA that margins but because we

Rob Joyce

you we half or And to sort more be are in X.X%? sort working for maintain quarter, of margin, that -- mean net your at the the gets much if or terms than Thanks. case the second expecting think than case? looking versus a half, then margin I worse you what of the base pressure lot clear pressure second second hard the just just pressure that are we're sort that Okay. in of of it's the to do base Is though

Ana Luísa Virgínia

margins level. we is will to course, impact as to you and we the affected margins. as Rob, at I margins to to competitive consolidated that the by way gross But, consumer, may to may protect on already remain on But you even can do is EBITDA. on first the the as as possible. in But to trade the also we and this our of that best of want said, be imagine, mean, this if company it of further prices best are because pressure down sure course, not And make the said, visible mean stay this competitive margin. that be to preserve the as the only have will that also, priority particularly, will invest choice its cash put

Rob Joyce

Thanks Yes, much. understood. very

Ana Luísa Virgínia

Thank you.

Operator

Thank you, Rob.

comes take the from next next Please of line JB standby. we’re question. going to The Now from João question Capital. Pinto our

Your question. line is open. Please ask your

João Pinto

morning, question. Good my for Hi. taking everyone. Thanks

basis for and this this during the that margin do on second the you'll refugees Many any in on the impact second in good the Biedronka's first growth? think for think a on the you on that decline able of is that estimate absolute Do volume points proxy gross XX of thanks. deliver And or for year? won't gross growth on the there during margin Is second group decline Easter basis happen follow-up The the any margin you EBITDA one quarter had gross at is EBITDA. be second good Poland Do in in like a second half decline? proxy question. you And finally, level. half, quarter mix a effect question My positive half? Jose's an have on the to the specific the

Ana Luísa Virgínia

Thank you, João.

can don't progression that as take we proxy. is at So, The of any mentioned, I I challenging. a this quite point, context as think the

that we -- the not visible circumstances line was our I'm it if this have it and performance the for leverage exclude much conscious but than performance teams, know So, from operational we aware had an has. growth current cannot we more remarkable And kind top business. the in that that we of that is are would really the the

gave and us which cost at high So or is is be is quite number progression. cautious, us we to the question least the a which for tend why

when seeing have the this progression Rob, the of answering to we the to sure that best to fighting to to cautious will make and costs. to to able mentioned the way, course, be we And of we a when the of consumer costs. that our challenge think be choice is be protect hide. I sales continue don't But I dilute As are

in So, earlier calls. that what we think our and I mentioned

that we the still think progression, What which current absolute a be this mentioned the think percentage, outlook we with in is estimate that growth I terms. in pressured. we what course is in of will

So will of we – to even grow, categories estimating the this I as are that mentioned, that we margins. more are growing lower have

So comparison this source team. But be but going the for we also a absolute is going to the that, continue of we more pressure terms, believe challenging our to in deliver margins. is on to are

accurate On clear the coming the as number. to out, of difficult We not give in impact exact the bulk and that cannot it very you of because with this think have. a refugees number an that I one. it's flux point at currently the But coming we would I of the not we it's totally refugees that a growth have mentioned, have and be estimates the

João Pinto

Thank much. you very

Operator

Thank João. you,

going next BNP The Paribas. from Andrew question. stand-by. Gwynn are question Please Now our line the from take Exane we comes of to next

your Your open. is question. ask line Please

Andrew Gwynn

morning. good I questions if I Hey, two have can.

the maybe for June. the QX? then energy so coming already into within else the slotting Is hedges market to Poland improvement of QX hedge you of story where talk volume got we in you've the could group, performance for that to Poland firstly, like end a inflation there's Portugal, sequential any instance? sort versus was. picked secondly, more the up happened you little just there about rest good. that but food And in So mind mentioned of And have seems share in anything the bit be much. what to mindful Obviously, Thank very energy if in the

Ana Luísa Virgínia

you, Thank Andrew.

is Biedronka inflation. you different inflation in internal an on introduction, But have as country's sales, you inflation is hide. to Biedronka the I that mentioned have mentioned don't One we So my of course, effects. several manages below as and

So are containing maintaining we and prices really competitiveness.

is other growth. one volume The

points So despite grown had that of we numbers, Easter, in effect course, last had X.X And quite versus year. was having own in Easter the have period percentage second performance same the last last the probably volumes which it's extraordinary our good to we year quarter very a year. according

So have from slightly until point. Biedronka share continued May, basically that and the one to numbers we below market percentage grow

contract Portugal This On an was we long-term had totally forward, fully a company. energy, we so are the with energy so hedged hedge going of not hedged.

we are not in Portugal and So partially hedged in Poland. hedged

that. the in half, energy in Portugal which we first is increased that The importance. also because see And that saving we going a start costs. is now fuel I of because will a were So to as consider bigger sales pressure in has we our it can of able the significantly but quite had sales Poland, Energy that – have continue with a impact, of all dilute as it's think until to percentage said, And way we double cost. of course for second the we it's to – that growth also I

continue we continue so also. And to be Poland sales as in are transport it in and Portugal grow visible will costs to and already

be So extra mentioned our – this another of source as another will cost I pressure structure. for

Andrew Gwynn

gains, on cost. about clear were QX? the where very think not market And lazy. loosely QX. sure it's as me you It's I same on just Okay. I'm just –– you the that's if in share Can I'm remind being the

Ana Luísa Virgínia

is more the QX. it in in or line Yes, progression with less

Andrew Gwynn

Okay.

summer. a good you Have very so good much. performance. Ana, Thank Firstly,

Operator

Thank you, Andrew.

stand next from comes question. Xavier Le the going next Please question by. The Now, our Mené Bank of line from take to we’re of America.

Your question. line open. is your ask Please

Xavier Le Mené

I if may. you. thank Yes, Two

on in potentially, recognition expecting today? share And in That's question. you also update you how share much And good potentially about one, XXXX your market is us of first what today? QX? tell can where how terms are and openings a from Ara you you And brand better Ara, is The the can first or bit market had gains onward? the

back The to going you're have tell QX? how us to Doce. think, Can normal footfall you do improvement for you back Do you normal, traffic you one see room still Pingo on and is second forward? just think you and or

Ana Luísa Virgínia

was the to on just right? clarify, Xavier, Pingo question Doce, last

Xavier Le Mené

That's correct.

Ana Luísa Virgínia

Thanks. Okay.

we number don't be doubt of don't a gaining So, Colombia, on have that is country in in market as where and the market in terms. visible, the been the share -- I reliable regions is operates. to think Ara, that inflation the because I there disclosed. has disclose the progression has real Ara market market if still no Ara even we contracting And we consider the Nonetheless, significant fact mentioned considering in quite retail been increase it is this share because in

for that would our say the and the business, is more -- other gaining is our with particular that, together is one I the that brand discounters. probably share, So this format

it's traffic visible, not As fact sell course the that recognition, brand definitely. have we that, been stores. this And only more, for we but on in of more I much think increasing is our

store significantly So of per with the kind this increasing is inflation. day even sales per

So as that comes saving volumes people fact up significant. really are recognizing from is something now are opportunity. this quite Ara is that a and And providing it the

very other formats. kinds with store, the good with assortment, contrary a despite limited best good shopping of environment, prices a it's So having probably to

the so is I mentioned. As for going idea forward, on to the openings as accelerate XXXX

think Pingo of surpass terms investing in to Doce, the for further of end we I saw recovery want don't So we openings we next On logistics, so. traffic, in forward. the years are going XXX if the because the

that number are being in be and effects the tickets has average comparable of is in currently, course because, that grow with is Pingo said, do the the of recover. of increasing ticket. also will fact solutions us and to say important with compared Doce that in seeing to think paramount we this year. I possibility pandemic and This saving to the category. prior with meal to opportunities and But in thing and difficult is has I that for takeaway One the is think the the price are we betting still our of recovery the

Doce a think next people increase foods, continue is the in we factor are and to So quarters. Pingo buying also going even meaning the this differentiation that will which prepared back and that in

Xavier Le Mené

you. Thank Okay.

Ana Luísa Virgínia

Thank you, Xavier.

Operator

Thank you.

of line by. comes to Stifel. going question. question Lecasble our The next Cedric from next stand we’re Now, the take from Please

is Your Please ask line open. question. your

Cedric Lecasble

Yes, you have good I follow-ups. two for questions. taking my morning team. Thank

negotiations with The first on the suppliers. the one

your And depending do see the negotiations that versus production suppliers reconsider you the goods be in in What's in margin the frequency raise and this That's often on and costs? of impact production categories percentage costs the said moving rise HX. of on prices? of kind you You parts the gross how was HX and probably with cost number of at one. question that one could what would it terms the potential

in you The and Portugal Poland Pingo second much. very factual. Biedronka you your recall one shares Thank is market very Doce? us Could

Ana Luísa Virgínia

service the are On you, the or we Starting market the because players, on with information information have XX% Thank that all in at one. Cedric. so confident – quite are here numbers shares, in have Poland from we provider last ahead that in we Biedronka is and disclosed Portugal. had

because to sales. do not their estimates all our players provide have We

internal market estimates quite Nonetheless, So share. it's in very from have source grew our share hard market to Doce. and don't Pingo also we -- we of reliable a

is share. So recovering Pingo Doce market

I for of they you further also, products. context As think new really new the have we the lot that want even current in But price negotiations. campaigns on to of of to that dynamic of of this current doing kind this have with have have or depends suppliers course And are have imprint. course But want if that to kind will to top will course, we negotiations introduce -- that that, in suppliers as with also it. annual dynamic suppliers. you sure invest of of our usually a course negotiation done the volumes context, make that increase On you suppliers negotiations probably and in of are we depend the to of some you rounds special the their expect

So, done gains or negotiations are monthly. of we revisions or may of weekly have prices that

Cedric Lecasble

for just ask at the for in share I May number market Portugal the Pingo Doce? absolute

Ana Luísa Virgínia

prefer give would to I Cedric, not it.

market of have but base, proper in terms may it As I We reliable be we share. said, think we not a a sure. are base near XX%, don't

Cedric Lecasble

much. Okay. you very Fine. Thank

Ana Luísa Virgínia

Thank you, Cedric.

Operator

to take our next going Now question. we’re

line CaxiaBI. Amaro Artur from comes next Our the of from

is line ask Your Please open. question. your

Artur Amaro

morning. Thanks my question. good for Hi, taking

in follow-up the Just possible. questions a the regarding market if Portugal, on it's quick previous share

beginning related or question disclose And the the is is around share less year gain Poland. you roughly the second just since just market margin Can Doce market XX%. share of with of Pingo figure the an loss So the have idea? more EBITDA the in to

If related investment taking much cost me. loss XX-basis related much points it cost once how Thanks of So inflation. was the questions apparently And loss was how the with investment related again. price and inflation? of the idea decrease give more the with and or is again to to it's possible less for that's price of for an

Ana Luísa Virgínia

Good morning. Artur.

Pingo reliable figures, for we mentioned players all I number sales. not the share, provide because Doce as of don't So, have

of I near So are we a may internal that that. that . is to estimates. be XX%, what these we our course, do it but have And on own disclaimer said think

price dilute As of the are to has of terms mainly for margin this reduction the able cost, or Biedronka, investments, increasing EBITDA for because significant loss quite we in do because course, to percentage with course are being sales. we

total growing in are sales more in growing But that. we more than or Biedronka. also costs less XX% So are

would So to margin at the I would we look the dilution, want if investments. from mainly come that just the say percentage

Artur Amaro

investment. Price

Okay.

again, a sorry. Just follow-up

the So, to the beginning you much? your own estimate, gained that, your of own apparently, estimates. like Again, too it's this X% which accordingly have much something how internal XX% year is or since

Ana Luísa Virgínia

Artur. Okay

that. to but prefer market according So, I not our we've disclose would estimates share, gained to

Artur Amaro

Okay.

you Okay. Fine. Thank very much. you. Thank Fine.

Operator

Artur. you, Thank

from from Potyra our continue next to next UBS. going of the The standby. Please comes take we’re question Now line to question. Michal

open. line ask Please question. is Your your

Michal Potyra

have Good morning, Ana already of answered. been everyone. most Luísa. my morning Actually questions Good

may. I if two just So

if could additional see risks. wanted one. taxes of other any ask business about one to the near which or in So first in regulation, future? first The that's any windfall is your impact the you I question know Thank one be outlook. second color next you. would but When progression. could Would margin inflection difficult see a early terms appreciated. you of on thoughts is an in point it's XXXX? any I we about year any Poland regulatory the risks share And

Ana Luísa Virgínia

Thank you, Michal.

regulatory, I European seeing have the Union context, coming course, of on directives different regulation by the be even So in you that the and that would all transposed by say to states. are from the current the member more

further that a I honest, think conceiving particularly be context, is current systemic happening. effect will be that is everything the regulation I totally there there we will think of So that

in in government own I So, supply or ways the energetic stimulus disruptions this the inflation, to the that this say the finance cases. chain. will rule pressure global to to the some But don't give wouldn't crisis, economies, the support And to And that out I will new the think will have that new their also taxes government particularly find I expenses. sector. the affect further

going I fact. the not to current I think think But just Poland be context for it's it on comes it's economy be add another to be everywhere. going the It's and in general going the from think I in thing context. to to

As see that to to XXXX, is challenging. currently, that continue way very it's to be we the it going

feeling economy I have think the effect the that in that next part of general will year. feeling still effect is and families are all the for

pressure. to with have to deal will extra sources of companies be prepared our so And

So not this is something apparently.

don't are see -- not unfortunately we war. to We end currently the an

let's also recovery and do to it food, between energetic also supply the the will and balance connected that its and think only to demand the chains say future. And but for continue with not connects has the supply the particularly I this on is of the effects crisis.

inflect So how not. or it's going to

Michal Potyra

you. Thank

Ana Luísa Virgínia

Michal. you Thank

Operator

you. Thank

The the our next of question Seladas, António question. standby. are to going we next line Independent take Now, AS comes from Research. Please

open. Please ask is question. line your Your

António Seladas

Well, morning. the of answered. good questions already Hi, are most

as small IFRS. terms has in is of was Hebe's of breakeven reached economy well, in it's in very strong Taking the doing the sales of still in well. Just doing one terms before consideration performance. a that quarter terms just Hebe EBITDA

or fits targets with not? your So it still

Ana Luísa Virgínia

António. Hi,

the that want is having to sales be restrictions it's been also done by to company stakeholders. XXXX, only the we not to don't the do any our We making, other shareholders loss with in of only part in of comparative for all has part lot by level approach the is to that of yes, that want. an still so omnichannel And quite but the course, recovery with recovery has were consumers. because the important so fact also businesses the place something but the at the So, half has as our first market a serve but all of not and our we this recognized store being that course Hebe, in work do to

targets their think So in this also. sense, I that are they meeting

António Seladas

much. very you Thank Okay.

Operator

Thank you.

to from Please comes next Coulter next are we going line the question from our Now, of Citi. The Nick take question. standby.

Please line Your your question. is open. ask

Nick Coulter

Two please. very morning. Hi. Good questions, quick

Colombia, comment last then, market relative the on market. I rate in could Thank in on Firstly Ara Has please? then, price market? is the And you for inflation gap you. to And Biedronka's the the guess that the quarter? versus where widened

Ana Luísa Virgínia

Nick. Hi.

percentage below on inflation around it the So three the is in Colombia inflation first versus Ara, quarter. of and less points. more case is maintained or has that our XX%, the In

are So market. prices best to the contain. already in We we continuing have the

some We cases of you have been contain are increases in the quite imagine. to that trying some can significant as

it terms is heavily more increases progression, basically in progressing the prices total company margin than investing the kind the in of with be of sales should the price is So suppliers. from this containing because and

way that the the the price the it Biedronka's we even to versus been players. commodities that way increased we gap, for and it has other measure As see

Nick Coulter

invest volume But have in guess the might are like base second you given more the you It I is the feels quarter, invest or did question? you performance.

Ana Luísa Virgínia

customers that mentioned, of I this fact only of the try do with course as but us, has For the the stayed Biedronka. are some to to choosing inflation to paramount competitive it And managed volume protect contain to And that is increase to more it Biedronka not now and volumes. X%.

and buying firstly, they Biedronka. other So they are probably, now chose players from

Nick Coulter

so Thanks much. Okay.

Operator

Thank you, Nick.

of Now line from we And last going question from the are Michał comes the to take Please our standby. question. Allianz. Majerski

question. ask Please Your line your open. is

Michał Majerski

Could Poland? with maybe Hi. sugar example I have question. lack something of any only there the you. you or me, is in for Biedronka problem Do suppliers one tell in you have Thank it's totally different? why reason

Ana Luísa Virgínia

in sugar Hi of don't But currently. there is of that from Biedronka constraints. punctual happen that this Michal, lack really because a may temporary I I think think don't or some shortages

Operator

further for There now to I to Virgínia you, Ana questions, conference like remarks. Thank closing and would speaker, the your Michal. are no hand over Luísa

Ana Luísa Virgínia

Thank conference all attending for this for questions and your you call.

… to Our to and situation business, financial will positions strong on to while consumption and to be responsibility. to the allow we Thank vision a likely you our will leading stick new us build group and paramount market up that of our I once supply patterns. order to again. wish long-term the chains And profitable believe economic you ability geopolitical what global the sustainable be banners' This and reshape and of social continue the verge

Jerónimo Martins, SGPS (JRONY) 27 Jul 222022 Q2 Earnings call transcript