WOOD Flash – Jumbo: 1H20 results – strong vs. other Greek retailers
Jumbo’s performance during 1H20 was quite strong vs. the other Greek retailers, demonstrating the group’s resilience to external shocks, in our view. With 8M sales of -10.9% yoy, we believe that our estimates are on track, for a full-year revenue contraction of just 8%, adjusted for the COVID-19 effects, as back-to-school and the Christmas celebrations fall in the second half of the year (generating >35% of annual turnover). We believe that the stock has been penalised recently, due to reasonable fears of a second lockdown, as the daily COVID-19 cases in Greece have spiked. Nevertheless, we believe that the company has built strong brand loyalty, while the current state of the economy naturally benefits discount retailers. On our numbers, the stock trades at 13.9x 2021E P/E and 6.4x EV/EBITDA, while its resilient revenues, dominant market share and strong cash buffer (net cash position) justify our conviction on the stock. We remain BUYers.Jumbo is a trading company based in Greece. Co.'s main operation is retail sale of toys, baby items, seasonal items, decoration items, books and stationery. A part of its operations is wholesale of toys and similar items to third parties. Co. and its subsidiaries have four geographical segments: Greece, Cyprus, Bulgaria and Romania. At June 30 2015, Co. operated 72 stores in Greece, Cyprus, Bulgaria and in Romania and the on line store e-jumbo.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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