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
Research Team

The Rear-View Mirror – EME markets: Equities back in the red in EUR terms in July

EME Equity Market – July 2020 Market performance – majority of indices in the red, with the ISE30 Index down 12.6%. Following its mediocre decline in June, the MSCI EM Europe Index declined 4.4% in EUR terms, but gained 0.4% in local currency terms in July. Following the rather large decline in the Turkish equities, the MOEX Index was also down, 3.5%, in July; while the Athens’ benchmark declined 3.3% and the Romanian BET Index fell 3.2%. Following its gain last month, the PX Index declined by 2.4%, followed by the Hungarian BUX Index, -0.4%. The only benchmark with a positive return in EUR te...

Research Team

WOOD Daily: MBK PW; GARAN TI; YKBNK TI; OTKAR TI; TKFEN TI; NVTK LI; JMT PL; TITC GA; PKN PW; ENG PW; KCEL KZ; OPL PW; NIIS SG; EL RO; AFLT RX; TL Macro; CIE PW; PL Utilities; ARNT CZ

HEADLINES: • mBank: 2Q20 - posts beat vs. expectations due to low base effect; 1H20 ROE of only c.2% NEUTRAL • Garanti: 2Q20 generally stronger than expected • Yapi Kredi: in line with expectations, similar positive trends vs. peers • Otokar: 2Q20 results - EBITDA beat driven by defence exports POSITIVE • Tekfen: 2Q20 results - a mixed bag NEUTRAL • Novatek: 2Q20 results - expectedly weak, but ahead of the consensus • Jeronimo Martins: small beat in 2Q on (relative) strength of Biedronka POSITIVE • Titan Cement: solid 1H20 numbers, with manageable COVID-19 effect POSITIVE • PKN Orlen: 2Q20 ...

Research Team

WOOD Daily: PL Politics; PL Macro; RU Macro; TL Macro; JSW PW; CDR PW; JMT PL

HEADLINES: • Polish politics: President Andrzej Duda re-elected for a second term NEUTRAL • Poland macro: Duda wins second mandate • Russia macro: fiscal prudence to the fore again • Turkey macro: current account widens to -1.1% • JSW: 2Q20 trading update - significant drop in coal sales and production NEGATIVE • CD Projekt: Ubisoft sets release date two days before Cyberpunk • Jeronimo Martins: 2Q20E results preview - 15% yoy EBITDA drop expected (due on 29 July) NEUTRAL • Short News (OPL)

Expert Corporate Governance Service (ECGS)

Jerónimo Martins, SGPS, S.A. - AGM 25 June 2020

The AGM was initially called on April 16, and postponed to June 25. The Agenda remained the same, and the only change to proposed resolutions refers to the allocation of net results (item 2). In light of the uncertainties related to the Covid-19 pandemic, the Board resolved to reduce by 40% the dividend distribution originally proposed at the cancelled AGM of April (€0.345 per share). Total dividend distribution will amount to €130 million, corresponding to a pay-out of 33.4% on reported net income, which is below the Company's policy to distribute from 40% to 50% of consolidated net earnings....

Research Team

The Rear-View Mirror – EME markets: Rebound continues, all indices in the black on lower volumes

EME Equity Market – May 2020 Market performance – the rebound that started in April continued across the board, with the Romanian BET Index gaining the most in EUR terms (+8.9% mom). The MSCI EM Europe Index gained 6% in EUR terms and 7.5% in local currency; while the Romania BET Index grew 8.9% in EUR terms and 9.1% in RON terms, the best performer for the month. The MOEX Index added 7.5%, while the Polish WIG20 Index was up 6.6%. The Turkish benchmark, the ISE30 Index, added 4.5%, and the Greek ASE Index gained 3.9%, while the Hungarian BUX recorded an increase of 3.7%. The weakest performer...

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.

Research Team

The Rear-View Mirror – EME markets: Equities back in the red in EUR terms in July

EME Equity Market – July 2020 Market performance – majority of indices in the red, with the ISE30 Index down 12.6%. Following its mediocre decline in June, the MSCI EM Europe Index declined 4.4% in EUR terms, but gained 0.4% in local currency terms in July. Following the rather large decline in the Turkish equities, the MOEX Index was also down, 3.5%, in July; while the Athens’ benchmark declined 3.3% and the Romanian BET Index fell 3.2%. Following its gain last month, the PX Index declined by 2.4%, followed by the Hungarian BUX Index, -0.4%. The only benchmark with a positive return in EUR te...

Research Team

The Rear-View Mirror – EME markets: Rebound continues, all indices in the black on lower volumes

EME Equity Market – May 2020 Market performance – the rebound that started in April continued across the board, with the Romanian BET Index gaining the most in EUR terms (+8.9% mom). The MSCI EM Europe Index gained 6% in EUR terms and 7.5% in local currency; while the Romania BET Index grew 8.9% in EUR terms and 9.1% in RON terms, the best performer for the month. The MOEX Index added 7.5%, while the Polish WIG20 Index was up 6.6%. The Turkish benchmark, the ISE30 Index, added 4.5%, and the Greek ASE Index gained 3.9%, while the Hungarian BUX recorded an increase of 3.7%. The weakest performer...

Research Team

WOOD Daily: GPW PW; CZ Macro; WPL PW; TEN PW; SPI AV; EXAE GA; JMT PL; ALR PW; PEO PW; GR Banks

HEADLINES: • Warsaw Stock Exchange: expecting dividends and high opex (stays HOLD) • Czech Republic macro: first look at the recovery • Wirtualna Polska: weak 1Q20 results, with adjusted EBITDA down 7% yoy, 3% below our forecast NEGATIVE • Ten Square Games: 1Q20 in line, aggressive user acquisitions in 2Q20E NEUTRAL • S Immo: 1Q20 - revaluation loss of 1.3% of the portfolio value, limited impact on recurring figures NEUTRAL • Athens Stock Exchange: 1Q20 slightly weaker due to higher cost growth • Jeronimo Martins: another Antimonopoly Office investigation, potentially leading to a fine NEG...

Research Team

The Rear-View Mirror – EME markets: Markets rebound from March’s meltdown, all indices in the black

EME Equity Market – April 2020 Market performance – in contrast to March, all indices recorded positive changes in April, with the Greek ASE Index advancing the most in EUR terms. The MSCI EM Europe Index gained 10.5% in EUR terms and 10.2% in local currency terms. The ASE Index was the best performer, +12.5%; followed by the PX Index, +11.5% in EUR terms. The Russian MOEX grew 11.2%; while the WIG20, the Polish benchmark, added 9.4%. A solid performance was reported in Hungary as well, where the BUX index rebounded 8.6%. The Turkish ISE30 Index showed a healthy advance of 5.4%, while the Roma...

Fani Tzioukalia ...
  • Gabriela Burdach
  • Jakub Mician
  • Lukasz Wachelko, CFA
  • Stefan Lungu, CFA

CEE Consumers: #stayathome (coverage universe update)

The development of the COVID-19 pandemic has changed the landscape for consumer names materially. While #stayathome is slowing down the contagion, it has infected the foundations of discretionary retailers severely. At the same time, the staples players have seen a sales boost, especially in the e-commerce space. Facing such a storm among the especially vulnerable players hurt by store lockdowns and carrying high leverage, we identify: AmRest, CCC, Kofola and Fourlis. On the other hand, FMCG distributors and manufacturers are the relative winners. However, taking into account share price perfo...

Research Team

WOOD Daily: MBK PW; GARAN TI; YKBNK TI; OTKAR TI; TKFEN TI; NVTK LI; JMT PL; TITC GA; PKN PW; ENG PW; KCEL KZ; OPL PW; NIIS SG; EL RO; AFLT RX; TL Macro; CIE PW; PL Utilities; ARNT CZ

HEADLINES: • mBank: 2Q20 - posts beat vs. expectations due to low base effect; 1H20 ROE of only c.2% NEUTRAL • Garanti: 2Q20 generally stronger than expected • Yapi Kredi: in line with expectations, similar positive trends vs. peers • Otokar: 2Q20 results - EBITDA beat driven by defence exports POSITIVE • Tekfen: 2Q20 results - a mixed bag NEUTRAL • Novatek: 2Q20 results - expectedly weak, but ahead of the consensus • Jeronimo Martins: small beat in 2Q on (relative) strength of Biedronka POSITIVE • Titan Cement: solid 1H20 numbers, with manageable COVID-19 effect POSITIVE • PKN Orlen: 2Q20 ...

Research Team

WOOD Daily: PL Politics; PL Macro; RU Macro; TL Macro; JSW PW; CDR PW; JMT PL

HEADLINES: • Polish politics: President Andrzej Duda re-elected for a second term NEUTRAL • Poland macro: Duda wins second mandate • Russia macro: fiscal prudence to the fore again • Turkey macro: current account widens to -1.1% • JSW: 2Q20 trading update - significant drop in coal sales and production NEGATIVE • CD Projekt: Ubisoft sets release date two days before Cyberpunk • Jeronimo Martins: 2Q20E results preview - 15% yoy EBITDA drop expected (due on 29 July) NEUTRAL • Short News (OPL)

Research Team

WOOD Daily: BIMAS TI; 11B PW; M RO; SNG RO; TEL RO; GPW PW; TELEC CP; NLBR SV; WINE RO; GSPARK HB; PETKM TI; KOFOL CP; DIGI RO; RU Macro; HTO GA; EL RO; JMT PL; CPS PW; CEZ CP; EAT PW; ANY HB

HEADLINES: • BIM: major 1Q20 beat on sales, e-commerce on the horizon POSITIVE • 11 bit studios: 1Q20 results - strong beat from top to bottom POSITIVE • MedLife: 1Q20 earnings beat on margin expansion POSITIVE • Romgaz: posts strong 1Q results POSITIVE • Transelectrica: 1Q20 results above expectations POSITIVE • Warsaw Stock Exchange: 1Q20 EBITDA up 30% yoy and 10% above market's expectations POSITIVE • O2 Czech Republic: strong 1Q20 results, with EBITDA up 7% yoy, in line with expectations NEUTRAL • NLB Group: 1Q20 results below, COR guidance reassuring • Purcari Wineries: 1Q20 results sli...

Research Team

WOOD Daily: SAR GA; BHW PW; RBI AV; JMT PL; ELPE GA; TTKOM TI; KGH PW; CPS PW; BVB RO; TGN RO; SFG RO; TCS LI; MTELEKOM HB; TPE PW; TITC GA; STCK LN; IIA AV; TL Macro; MOEX RX; EAT PW; SBER RX; PLY PW; M RO; ROSN LI; PZU PW

HEADLINES: • Sarantis Group: no such thing as a free lunch (downgraded to HOLD) • Bank Handlowy: 1Q20 results suggest ugly 2020E NEGATIVE • Raiffeisen Int.: 1Q20 - very solid, at face value • Jeronimo Martins: 1Q20 miss due to the pandemic NEGATIVE • Hellenic Petroleum: 1Q20 results - massive inventory loss wipes out profit • Turk Telekom: 1Q20 results - 12% NI beat • KGHM: 1Q20 results - flat EBITDA qoq, FCF breakeven NEUTRAL • Cyfrowy Polsat: 1Q20 results soft, in line with our forecasts and the consensus NEUTRAL • Bucharest Stock Exchange: 1Q20 review - revenues up 37% yoy amid higher ...

Research Team

WOOD Daily: KER PW; EME Macro/Strategy – Ukraine; CCC PW; MAIL LI; PPC GA; IIA AV; KGH PW; PLZL LI; JMT PL; SFG RO; KTY PW; CIE PW; FMF PW; PL Telecoms

HEADLINES: • Kernel: land reform risk easing, profits to grow (BUY - transfer of coverage) • EME Macro/Strategy: Ukraine - the road ahead is favourable • CCC: 1Q20 a notch above prelims, restructuring another PLN 150-160m in cash to costs NEUTRAL • CCC: banks prolong the availability of existing financing POSITIVE • Mail.ru: 1Q20 results - better growth in New Initiatives and O2O JV • Public Power Corporation: lifts 2020E guidance to c.EUR 700m, "with EUR 100-150m upside" POSITIVE • Immofinanz: Ronny Pecik takes over • KGHM: March production and sales - on track to meet guidance • Poly...

JERONIMO MARTINS SA sees its risk increased and a downgrade to Neutral

JERONIMO MARTINS SA (PT), a company active in the Food Retailers & Wholesalers industry, increases its market risk and lowers its general evaluation. The independent financial analyst theScreener just requalified the stock market behaviour as moderately risky. On the other hand, theScreener awards a fundamental star to the title, but the new risk assessment downgrades the general evaluation to Neutral. As of the analysis date January 14, 2020, the closing price was EUR 15.29 and its expected value was estimated at EUR 14.88.

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...

Expert Corporate Governance Service (ECGS)

Jerónimo Martins, SGPS, S.A. - AGM 25 June 2020

The AGM was initially called on April 16, and postponed to June 25. The Agenda remained the same, and the only change to proposed resolutions refers to the allocation of net results (item 2). In light of the uncertainties related to the Covid-19 pandemic, the Board resolved to reduce by 40% the dividend distribution originally proposed at the cancelled AGM of April (€0.345 per share). Total dividend distribution will amount to €130 million, corresponding to a pay-out of 33.4% on reported net income, which is below the Company's policy to distribute from 40% to 50% of consolidated net earnings....

Expert Corporate Governance Service (ECGS)

Jerónimo Martins, SGPS, S.A. – AGM 16 April 2020

In item 4, shareholders are called to an advisory vote on the remuneration report. We have serious concerns over the variable emuneration structure, because it exclusively depends on annual results, with no deferred components or long-term incentive plans. Furthermore, concerns may arise over the very high percentage of annual bonus depending on a qualitative assessment of the Board (50%). Therefore, we recommend opposition.

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...

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