Jeronimo Martins SGPS S/A

Jeronimo Martins S.G.P.S. is a holding company. Through its subsidiaries, Co. is engaged as a food distribution company with operations in Poland and Portugal. Co. operates in four segments: Portugal Retail, which comprises the business unit of JMR - Gestao de Empresas de Retalho, SGPS, S.A. (Pingo Doce supermarkets); Portugal Cash & Carry, which includes the wholesale business unit Recheio; Poland Retail, which includes the business unit with the brand Biedronka; and Others, which includes marketing services and representations, restaurants in Portugal, health and beauty retail in Poland, and its retail business in Colombia.
  • TickerJMT
  • ISINPTJMT0AE0001
  • ExchangeEuronext Lisbon
  • SectorFood & Drug Retailers
  • CountryPortugal

Analysts

Research Team

The Rear-View Mirror – EME markets: Weak Istanbul, but good month in Hungary

EME Equity Market – October 2019 Market performance – ISE30 index the worst performer among our followed indices, down 10.1% in EUR terms and 7% in local currency terms. The MSCI EME index gained 3.7%, but added 6% in local currency terms. All our followed indices were in the black, bar the BET (-0.8% in EUR) and ISE30 indices (-10.1% in EUR). The BUX Index gained the most (5.9%), followed by MOEX (4.3%) and WSE (3.6%; all performance figures in EUR terms). Prague was also up in October (+1.9%) in EUR terms, while the Athens Stock Exchange index almost matched Prague’s performance, with a gain...

Research Team

Focus: Turkish automotive - turning the corner (Ford Otosan stays BUY, Tofas downgraded to HOLD); Jeronimo Martins’ 3Q19 results a notch ahead of expectations on 8% lfl in Biedronka; strong FCF; AmRest’s 3Q19 preliminary sales up 29% yoy

HEADLINES: • Turkish automotive: turning the corner (Ford Otosan stays BUY, Tofas downgraded to HOLD) • Jeronimo Martins: 3Q19 results a notch ahead of expectations on 8% lfl in Biedronka; strong FCF POSITIVE • AmRest: 3Q19 preliminary sales up 29% yoy, 17% excluding M&A POSITIVE • PKN Orlen: 3Q19 results - small beat on EBITDA • Kety: 3Q19 results - EBITDA 4% above the preliminary forecasts, very strong export sales POSITIVE • Orange Polska: UKE has extended the list of districts exempt from BSA and LLU regulation POSITIVE • X5: key takeaways from the capital markets day • Polish banks: 3...

Research Team

Focus: Russian oil & gas – upgrading Lukoil and Tatneft to BUY, Rosneft stays HOLD; PGNIG – selected operating figures for 3Q19 and 9M19; Lotos’ 3Q19 preliminary estimates and operating results; Jeronimo Martins' Biedronka franchise project

HEADLINES: • Russian oil & gas: not as fossil as you think (Lukoil and Tatneft upgraded to BUY, Rosneft stays HOL • PGNIG: selected operating figures for 3Q19 and 9M19 • Lotos: 3Q19 preliminary estimates and operating results • Jeronimo Martins: Biedronka franchise project details POSITIVE • Alior Bank: mBank could be targeted by PZU group NEGATIVE • Severstal: 3Q19 financial results - 4% beat on EBITDA, FCF in line, offset by disappointing dividend NEUTRAL • EVRAZ: Capital Markets Day - higher capex, low IRR projects NEGATIVE • Dino: 3Q19E results preview - 3.3% EBITDA growth expected (due...

Research Team

Focus: X5 – sales growth decelerates to 13% in 3Q on soft traffic; Jeronimo Martins – Biedronka planning to open 100 franchise stores in a year; CME – key takeaways from 3Q19 earnings call, and AT&T close to selling its stake to PPF

HEADLINES: • X5: sales growth decelerates to 13% in 3Q on soft traffic NEGATIVE • Jeronimo Martins: Biedronka planning to open 100 franchise stores in a year POSITIVE • CME: key takeaways from 3Q19 earnings call POSITIVE • CME: AT&T close to selling its stake to PPF NEUTRAL • Tauron: Jaworzno to be commissioned by end-January, additional costs of PLN 52m NEUTRAL • Rostelecom: hopes to finish Tele2 consolidation in 1Q20E NEUTRAL • O2 Czech Republic: Czech telecoms watchdog delays start of 5G auction to early-January 2020 NEUTRAL • X5: 3Q19E results preview (due on 22 October) NEUTRAL

Research Team

Focus: OMV’s 3Q trading results; OMV Petrom’s 3Q operational results, and company makes new gas discovery in Oltenia region; PKO BP does not exclude takeover of banking assets

HEADLINES: • OMV: 3Q trading results • OMV Petrom: 3Q operational results • OMV Petrom: makes new gas discovery in the Oltenia region POSITIVE • PKO BP: does not exclude takeover of banking assets NEGATIVE • Polish banks: antimonopoly office scrutinises banks' FX mortgage contracts NEUTRAL • Polish banks: ZBP claims cancellation of FX mortgage agreements could be unfavourable for clients NEUTRAL • Ulker: not participating in Godiva Belgium capital increase NEUTRAL • Inter Cars: September revenue up by 10.2% yoy • Jeronimo Martins: 3Q19E results preview (due on 23 October) NEUTRAL • Short Ne...

Research Team

The Rear-View Mirror – EME markets: Weak Istanbul, but good month in Hungary

EME Equity Market – October 2019 Market performance – ISE30 index the worst performer among our followed indices, down 10.1% in EUR terms and 7% in local currency terms. The MSCI EME index gained 3.7%, but added 6% in local currency terms. All our followed indices were in the black, bar the BET (-0.8% in EUR) and ISE30 indices (-10.1% in EUR). The BUX Index gained the most (5.9%), followed by MOEX (4.3%) and WSE (3.6%; all performance figures in EUR terms). Prague was also up in October (+1.9%) in EUR terms, while the Athens Stock Exchange index almost matched Prague’s performance, with a gain...

Research Team

Focus: Turkish automotive - turning the corner (Ford Otosan stays BUY, Tofas downgraded to HOLD); Jeronimo Martins’ 3Q19 results a notch ahead of expectations on 8% lfl in Biedronka; strong FCF; AmRest’s 3Q19 preliminary sales up 29% yoy

HEADLINES: • Turkish automotive: turning the corner (Ford Otosan stays BUY, Tofas downgraded to HOLD) • Jeronimo Martins: 3Q19 results a notch ahead of expectations on 8% lfl in Biedronka; strong FCF POSITIVE • AmRest: 3Q19 preliminary sales up 29% yoy, 17% excluding M&A POSITIVE • PKN Orlen: 3Q19 results - small beat on EBITDA • Kety: 3Q19 results - EBITDA 4% above the preliminary forecasts, very strong export sales POSITIVE • Orange Polska: UKE has extended the list of districts exempt from BSA and LLU regulation POSITIVE • X5: key takeaways from the capital markets day • Polish banks: 3...

Research Team

The Rear-View Mirror – EME markets: Turkish market stands out in September

EME Equity Market – September 2019 Market performance – all markets in the black, with Turkey standing out. In September, the MSCI EME index expanded by 3.8% mom. The Turkish ISE30 stood out among its peers, rising by 14.1% mom, vs. losing 10.8% in August. Moscow’s index was the second-best performer, up 4.0% mom, recovering from the 3.8% loss seen in the previous month. Bucharest’s BET index ended September with a gain of 3.3%, while Warsaw’s WIG20 rose by 2.0%, vs. its 8.3% loss in August. The BUX index gained 1% in September, while Prague’s PX was up 1.1%. The ASE remained flat in September...

João Calado ...
  • Kamilė Bertašiūtė

BiG Research PSI20 Note: Jerónimo Martins Initiation of Coverage

BiG Research - PSI20 Note: Jerónimo Martins Initiation of Coverage Jerónimo Martins is committed to grow the business by continuous store expansion in all the markets, where it is present. The highest growth opportunities are viable in Health & Beauty sector in Poland, where Hebe is present (revenue growth +25% in 2018) and food retail in Colombia, where Ara is operating (revenue growth +48%). However, the two banners are not expected to achieve the scale, which Biedronka or Pingo Doce has, consequently they can contribute to the total revenues by 5-7% in the medium term. Moreover, Ara and He...

Christian Guyot

INVEST SECURITIES - JERONIMO MARTINS (VENTE, OC 13,2€ vs 12,9€) : Le levier opérationnel plafonne

Research Team

Focus: Russian oil & gas – upgrading Lukoil and Tatneft to BUY, Rosneft stays HOLD; PGNIG – selected operating figures for 3Q19 and 9M19; Lotos’ 3Q19 preliminary estimates and operating results; Jeronimo Martins' Biedronka franchise project

HEADLINES: • Russian oil & gas: not as fossil as you think (Lukoil and Tatneft upgraded to BUY, Rosneft stays HOL • PGNIG: selected operating figures for 3Q19 and 9M19 • Lotos: 3Q19 preliminary estimates and operating results • Jeronimo Martins: Biedronka franchise project details POSITIVE • Alior Bank: mBank could be targeted by PZU group NEGATIVE • Severstal: 3Q19 financial results - 4% beat on EBITDA, FCF in line, offset by disappointing dividend NEUTRAL • EVRAZ: Capital Markets Day - higher capex, low IRR projects NEGATIVE • Dino: 3Q19E results preview - 3.3% EBITDA growth expected (due...

Research Team

Focus: X5 – sales growth decelerates to 13% in 3Q on soft traffic; Jeronimo Martins – Biedronka planning to open 100 franchise stores in a year; CME – key takeaways from 3Q19 earnings call, and AT&T close to selling its stake to PPF

HEADLINES: • X5: sales growth decelerates to 13% in 3Q on soft traffic NEGATIVE • Jeronimo Martins: Biedronka planning to open 100 franchise stores in a year POSITIVE • CME: key takeaways from 3Q19 earnings call POSITIVE • CME: AT&T close to selling its stake to PPF NEUTRAL • Tauron: Jaworzno to be commissioned by end-January, additional costs of PLN 52m NEUTRAL • Rostelecom: hopes to finish Tele2 consolidation in 1Q20E NEUTRAL • O2 Czech Republic: Czech telecoms watchdog delays start of 5G auction to early-January 2020 NEUTRAL • X5: 3Q19E results preview (due on 22 October) NEUTRAL

Research Team

Focus: OMV’s 3Q trading results; OMV Petrom’s 3Q operational results, and company makes new gas discovery in Oltenia region; PKO BP does not exclude takeover of banking assets

HEADLINES: • OMV: 3Q trading results • OMV Petrom: 3Q operational results • OMV Petrom: makes new gas discovery in the Oltenia region POSITIVE • PKO BP: does not exclude takeover of banking assets NEGATIVE • Polish banks: antimonopoly office scrutinises banks' FX mortgage contracts NEUTRAL • Polish banks: ZBP claims cancellation of FX mortgage agreements could be unfavourable for clients NEUTRAL • Ulker: not participating in Godiva Belgium capital increase NEUTRAL • Inter Cars: September revenue up by 10.2% yoy • Jeronimo Martins: 3Q19E results preview (due on 23 October) NEUTRAL • Short Ne...

Research Team

Focus: Public Power Corporation – 2020E upside of EUR 532m from tariff hike, but valuation looking stretched; Jeronimo Martins – antimonopoly process in Poland; Wirtualna Polska’s Neckermann Polska announces insolvency

HEADLINES: • Public Power Corporation: 2020E upside of EUR 532m from tariff hike, but valuation looking stretched POSITIVE • Jeronimo Martins: antimonopoly process in Poland NEGATIVE • Wirtualna Polska: Neckermann Polska announces insolvency NEGATIVE • Kety: preliminary 3Q19 EBITDA 10% above our forecast POSITIVE • AmRest: plans to open 50 Burger Kings in Romania over five years NEUTRAL • Polish banks: PFSA notes strategic owners of banks in FX mortgage saga have to honour obligations • Piraeus Port Authority: 1H19E - concession to drive revenue growth (due out today, after the close)

Research Team

Focus: Bank Millennium posts very solid 2Q19; Turk Telekom’s 2Q19 results – strong numbers, declining FX exposure – guidance upgraded; NLMK’s 2Q19 financial results – in line with consensus, but FCF and dividends lower qoq

HEADLINES: • Bank Millennium: posts very solid 2Q19 POSITIVE • Turk Telekom: 2Q19 results - strong numbers, declining FX exposure - guidance upgraded POSITIVE • NLMK: 2Q19 financial results - in line with consensus but FCF and dividends lower qoq • ING BSK and Alior Bank: demand debt repayment from Onico NEGATIVE • Jeronimo Martins: takeaways from 2Q call NEUTRAL • Energa: announces a PLN 219m write-off at Ostroleka B NEUTRAL • CEE telecoms: Vodafone to create European tower company NEUTRAL • Titan Cement: 2Q19E results preview (due on 31 July) • Turkcell: 2Q19E preview (due on 31 July) • M...

JERONIMO MARTINS SA reduced its risk exposure resulting in an upgrade to Slightly Positive

JERONIMO MARTINS SA (PT), a company active in the Food Retailers & Wholesalers industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 4 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date April 26, 2019, the closing price was EUR 14.80 and its potential was estimated at EUR 15.54.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

MarketLine Department

Sonae SGPS SA - Strategy, SWOT and Corporate Finance Report

Summary Sonae SGPS SA - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. KeyHighlights Sonae SGPS SA (Sonae) operates diversified businesses in technology, retail, telecommunications, shopping centers and financial services. The company operates hypermarkets, supermarkets, convenience stores, departmental stores and restaurants. Sonae provides clothing and sports products, textil...

MarketLine Department

Distribuidora Internacional de Alimentacion SA - Strategy, SWOT and Corporate Finance Report

Summary Distribuidora Internacional de Alimentacion SA - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. KeyHighlights Distribuidora Internacional de Alimentacion SA (DIA) is an international food retailer that distributes fast moving and home and personal care (HPC) goods. It merchandises and sells fruits, vegetables, bread, meat and fish products. The company also retails pers...

MarketLine Department

Metro AG - Strategy, SWOT and Corporate Finance Report

Metro AG - Strategy, SWOT and Corporate Finance Report Summary Metro AG - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights METRO AG (METRO) is a wholesale and retail operating company. It offers various food and non-food products under the METRO and Makro brand names. The company offers its products and services to hotel and restaurants, catering companies, indepe...

MarketLine Department

Bunzl plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Bunzl plc Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Bunzl plc since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key Highlights Thi...

MarketLine Department

Deoleo, S.A. - Strategy, SWOT and Corporate Finance Report

Deoleo, S.A. - Strategy, SWOT and Corporate Finance Report Summary Deoleo, S.A. - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Deoleo, S.A. (Deoleo) is a bottled olive oil manufacturing company. The company is involved in refining, bottling and marketing of olive oil and seed oils. It produces and sells seed oils, rice, table olives, vinegars and sauces. Deole...

Expert Corporate Governance Service (ECGS)

Jeronimo Martins SGPS April 11th, 2019

In item 4, shareholders are called to an advisory vote on the remuneration report. We have serious concerns over the variable remuneration structure, as it exclusively depends on annual results and no limits to the maximum bonus are disclosed. In our opinion, the executive remuneration is not adequately linked to long-term results, hence he recommend opposition. In item 5, the AGM is called to appoint the members of all corporate bodies (Board of Directors, Board of General Meeting and the statutory auditor) in a single item. The members of the Board of Directors and the Board of General Meet...

Jeronimo – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

Proxy Report - 12/04/2018

In item 2, the Board proposes to distribute a dividend of € 0.6132 per share on 2017 results, by 1.3% higher than the dividend paid in the previous year despite a 35.0% decrease in consolidated net income. The dividend distribution amounts to almost 100% of the consolidated net income (€ 385 million), which is significantly higher than the disclosed Company's policy to distribute from 40% to 50% of consolidated net income. We regret that the proposed dividend distribution is not fully covered by free cash flow (€ 249 million in 2017). However, dividends were fully covered by net earnings and c...

Valérie GASTALDY

Analyse court terme - JERONIMO MARTINS SGPS SA : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 10,728 €. La tendance de fond serait remise en cause en cas de franchissement de 13,195 €.

Valérie GASTALDY

Short term view - JERONIMO MARTINS SGPS SA : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €10.728. The background trend would be questioned should prices rise above €13.195.

Valérie GASTALDY

Analyse court terme - JERONIMO MARTINS SGPS SA : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 10,728 €. La tendance de fond serait remise en cause en cas de franchissement de 13,195 €.

Valérie GASTALDY

Short term view - JERONIMO MARTINS SGPS SA : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €10.728. The background trend would be questioned should prices rise above €13.195.

Valérie GASTALDY

Analyse moyen terme - JERONIMO MARTINS SGPS SA : Le mouvement se poursuit.

La tendance est baissière. Le mouvement se poursuit. Le prochain objectif est à 12,148 €, puis 9,420 €. Le franchissement de 17,317 € remettrait en cause la suite de la baisse.

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