Jerónimo Martins, SGPS, S.A.: history, ownership, mission, how it works & makes money

A Brief History of Jerónimo Martins, SGPS, S.A.

Founded in 1792, Jerónimo Martins, SGPS, S.A. originally commenced its operations as a small grocery store in Lisbon, Portugal. Over the centuries, it evolved into a significant player in the retail sector across various markets.

By the late 20th century, Jerónimo Martins solidified its presence in the food distribution industry. In 1994, the company initiated its expansion into Poland, establishing the Biedronka supermarket chain. This move proved pivotal, as Biedronka became the leading discount retailer in Poland, boasting over 3,000 stores as of 2023.

In 2000, Jerónimo Martins went public on the Lisbon Stock Exchange, signifying its transition into a publicly traded entity. The company’s growth strategy involved not just local expansion but also entering new markets, such as Colombia in 2018 with the Ara supermarket chain.

Financially, Jerónimo Martins has shown robust performance. In 2022, the company reported a net revenue of approximately €20.2 billion, marking a 11.3% increase compared to €18.1 billion in 2021. The EBITDA for the same year was €1.2 billion, with a net profit of €453 million, reflecting a 10.8% increase year-over-year.

The following table summarizes key financial data over recent years:

As of October 2023, Jerónimo Martins continues to focus on sustainable practices, with a commitment to reducing its carbon footprint and enhancing food safety standards across its supply chain. Their strategic initiatives aim to bolster growth in existing markets while exploring new opportunities for expansion.

In terms of stock performance, Jerónimo Martins has maintained a stable position on the Euronext Lisbon, with shares trading around €19.56 in early October 2023. The company's market capitalization stands at approximately €10 billion.

Throughout its history, Jerónimo Martins has established itself as a leader in food distribution, with a dedicated focus on customer satisfaction and operational excellence.

A Who Owns Jerónimo Martins, SGPS, S.A.

Jerónimo Martins, SGPS, S.A. is a significant player in the retail and wholesale distribution industry, primarily operating in Portugal, Poland, and Colombia. As of the latest filings, the ownership structure of Jerónimo Martins reflects a mix of institutional and individual shareholders.

Shareholding Structure

According to the data from the latest financial reports, the following key shareholders own stakes in Jerónimo Martins:

Market Performance

As of October 2023, Jerónimo Martins' stock is listed on the Euronext Lisbon under the ticker symbol JMT. The company has shown resilience in its market performance, with the following metrics:

• Market Capitalization: Approximately €10.2 billion
• Latest Share Price: €18.50
• 52-Week High: €20.30
• 52-Week Low: €16.00
• P/E Ratio: 22.4
• Dividend Yield: 2.1%

Revenue and Earnings

Jerónimo Martins reported the following financial figures for the fiscal year 2022:

Recent Developments

As of September 2023, Jerónimo Martins announced plans to expand its operations in Poland, with a targeted investment of €200 million over the next five years. Additionally, the company is focusing on sustainability initiatives, aiming to reduce carbon emissions by 30% by 2030.

The board of directors comprises experienced individuals from various sectors, enhancing the governance structure of the company:

Jerónimo Martins, SGPS, S.A. Mission Statement

Jerónimo Martins, SGPS, S.A. is a leading international distribution group based in Portugal, operating within the retail and wholesale sectors, with a comprehensive focus on food and consumer goods. The company’s mission statement reflects its commitment to enhancing the quality of life of its consumers while providing sustainable solutions.

According to the official mission statement, the company's goal is to "serve customers by offering a diverse range of high-quality and convenient products at competitive prices." This mission aligns with its core activities across various regions, primarily Portugal, Poland, and Colombia.

In 2022, Jerónimo Martins reported a revenue of €21.3 billion, marking an increase of 10.8% from the previous year. This growth is attributed to its strategic focus on high-quality product offerings and an expanded market presence.

Jerónimo Martins emphasizes sustainability in its mission. The company aims to reduce its carbon footprint by 30% by the year 2030, enhancing its operational practices to support environmental well-being. This includes sourcing responsibly and minimizing waste throughout the supply chain.

Further reinforcing its commitment to customer satisfaction, Jerónimo Martins has invested in technology, with €100 million allocated for digital transformation projects in 2023. This investment is aimed at improving operational efficiency and enhancing the customer shopping experience through state-of-the-art platforms.

The company's core values, including respect, integrity, and transparency, guide its operations and decision-making processes. By focusing on these values, Jerónimo Martins aims to foster a positive relationship with stakeholders, including customers, employees, suppliers, and the communities it serves.

As of 2023, Jerónimo Martins operates over 3,000 stores across its markets, offering a wide range of products that cater to diverse consumer needs. The expansion strategy is aligned with its mission to ensure accessibility to quality food and consumer goods.

In summary, Jerónimo Martins’ mission statement encompasses not only goals related to customer satisfaction and product quality but also broader objectives concerning sustainability and technological innovation, positioning itself as a forward-thinking leader in the retail industry.

How Jerónimo Martins, SGPS, S.A. Works

Jerónimo Martins, SGPS, S.A. is a Portuguese multinational company primarily engaged in the retail sector. It operates through various grocery chains, predominantly in Poland, Portugal, and Colombia. As of the end of 2020, Jerónimo Martins reported total revenues of €19.1 billion, showcasing its substantial market presence.

The company is organized into several business segments, mainly Food Distribution, which accounts for approximately 99% of its revenue. The brands under its umbrella include Pingo Doce, Recheio, Biedronka, and Ara. Each brand targets different consumer demographics and markets, ensuring diversified revenue streams.

In Poland, Biedronka is the largest grocery chain, comprising over 3,300 stores and contributing significantly to Jerónimo Martins’ performance. For the fiscal year 2021, Biedronka generated revenues of approximately €14 billion, reflecting a growth of 8.4% year-over-year. The Polish market remains a cornerstone of Jerónimo Martins’ operations.

In Portugal, the Pingo Doce supermarket chain serves as a major player in the grocery sector. As of 2021, Pingo Doce had around 420 stores and recorded revenues close to €4 billion. The brand is known for its competitive pricing and quality products, appealing to a wide range of consumers.

Moreover, Jerónimo Martins has made significant investments in technology to enhance supply chain efficiency. They implemented advanced logistics systems, which improved inventory turnover rates by 15% over the last two years, leading to reduced operational costs.

The company also emphasizes sustainability in its operations, evidenced by their commitment to reducing carbon emissions by 30% by 2030, compared to the 2019 baseline. This strategic focus is reflected in their operational practices, including waste reduction initiatives and energy-efficient store designs.

Financially, Jerónimo Martins has consistently delivered strong performances. In the first half of 2022, the company reported an EBITDA of €566 million, with a profit margin of 2.8%. The following table summarizes key financial metrics:

Through these diverse operations and strategic planning, Jerónimo Martins continues to solidify its position as a leader in the retail market across different regions. The company's ability to adapt to market changes and consumer preferences plays a critical role in its sustained success.

As of the latest updates, Jerónimo Martins is also expanding its online shopping capabilities, catering to a growing demand for e-commerce solutions. In 2021, the online segment contributed approximately €200 million in sales, showing a year-over-year increase of 50%. This shift aligns with global retail trends, enhancing customer convenience and broadening the company’s reach.

In summary, Jerónimo Martins navigates the complexities of the retail landscape through a combination of strong brand identities, technological investments, and a continual focus on sustainability and consumer preferences, positioning itself favorably for future growth.

How Jerónimo Martins, SGPS, S.A. Makes Money

Jerónimo Martins, SGPS, S.A. operates primarily in the retail and wholesale distribution sectors, with a significant presence in Portugal, Poland, and Colombia. In 2022, the company reported revenue of approximately €22.8 billion, showcasing its robust business model.

The company’s revenue streams can be dissected into various segments, prominently featuring food distribution, retail sales, and private label products.

Revenue Breakdown by Segment

The largest contributor to Jerónimo Martins' revenue is its retail operations in Poland, particularly through its flagship brand, Biedronka, which has over 3,400 stores. In 2022, Biedronka’s EBITDA was estimated at approximately €1.3 billion, representing a growth of 9.4% compared to the previous year.

Pingo Doce, operating mainly in Portugal, reported a stable performance with a revenue uplift of 5.7% in 2022, reaching approximately €3.9 billion.

Private Label Products

Private label products have become a crucial growth area for Jerónimo Martins. The share of private label products in total sales reached about 36% in 2022, emphasizing consumer preference for these offerings due to competitive pricing and perceived quality.

Geographical Segments

The Colombian operations, although smaller in scale, have shown remarkable growth, with a 12.5% increase in revenue attributed to expanding market presence and growing consumer demand.

Cost and Margin Management

Jerónimo Martins maintains a strong focus on cost efficiency, with operational margins improving to 4.8% in 2022. Effective supply chain management and strategic sourcing are critical in managing costs while enhancing competitiveness.

Furthermore, the company’s investment in digital transformation has aided in optimizing inventory management, reducing waste, and improving customer engagement, ultimately impacting profitability positively.

Recent Developments

In response to changing consumer behaviors, Jerónimo Martins has intensified its online retail initiatives. The e-commerce segment saw an increase in sales of approximately 30% year-over-year in 2022, reflecting the shift toward online shopping. This digital strategy is expected to contribute more significantly to future revenue streams.

Overall, Jerónimo Martins' diverse operational strategy, combined with effective cost management and geographical expansion, enables the company to sustain its financial health and drive growth across its various business segments.