Jeronimo Martins stock holds recent gains as solid 2024 results highlight resilient margins

Jeronimo Martins stock reflects a resilient food retail story, with the Portuguese group Jerónimo Martins SGPS S.A. (ISIN PTJMT0AE0001) reporting mid single digit revenue growth for 2024 and maintaining solid profitability despite persistent cost inflation in its core markets of Portugal and Poland, according to the companys latest annual report for 2024.

Revenue growth in 2024 supports Jeronimo Martins stock

According to the 2024 annual report published by Jerónimo Martins and made available via its investor relations section, group revenue for 2024 increased in the mid single digit range year on year, driven primarily by like for like sales growth at its Polish banner Biedronka and stable performance in Portugal. The company highlighted that food inflation normalized compared with the previous year, which meant that volume and traffic trends became a more important driver of top line expansion.

In the same document, Jerónimo Martins reported that operating profit for 2024 improved versus 2023 as cost efficiency measures in logistics and energy partially offset wage and rent inflation. Management reiterated its focus on protecting price competitiveness while selectively investing in store refurbishments and supply chain upgrades to support longer term growth. For investors, the key signal was that the group generated enough operating cash flow in 2024 to fund both its capital expenditure program and a stable dividend distribution.

Profitability and comparison with prior year

The companys 2024 earnings metrics show that profitability trends remained resilient compared with 2023, even as cost pressures persisted. The annual report for 2024 explains that the overall EBITDA margin for the group was broadly stable year on year, supported by better commercial conditions with suppliers and efficiency gains in distribution, which offset higher personnel expenses and utilities. Management emphasized that the Biedronka chain continued to outpace the broader Polish food retail market in terms of both sales growth and market share.

In Portugal, the Pingo Doce supermarket chain delivered a low single digit increase in sales in 2024, reflecting a normalization of consumer demand after the stronger inflation driven growth seen in 2023. The report notes that Pingo Doce maintained a healthy margin structure through a combination of tight cost control and optimized promotions, which helped protect earnings despite more cautious discretionary spending by households.

Biedronka and Pingo Doce remain core profit drivers

Biedronka in Poland remained the largest contributor to Jerónimo Martins revenue and earnings in 2024, according to the latest available disclosures. The chain expanded its store network further and continued to invest in price and assortment to consolidate its leadership position in the Polish discount segment. Management indicated that Biedronka achieved positive like for like growth in 2024, supported by higher customer traffic and increased basket size, which together offset a more normalized inflation backdrop.

Pingo Doce, focused on the Portuguese supermarket segment, contributed meaningfully to group profitability as well. The banner maintained its emphasis on fresh food, private label products, and promotional campaigns tailored to more price sensitive consumers. The 2024 annual report notes that, while the Portuguese market grew at a slower pace than in 2023, Pingo Doce sustained its competitive position by improving store efficiency and rationalizing its cost base.

Representative product and customer proposition

A representative example of Jerónimo Martins customer proposition is the assortment of private label grocery products at Biedronka and Pingo Doce, which are positioned to offer competitive pricing while preserving acceptable margins. Private label penetration has grown over recent years, according to the companys disclosures, and forms a key part of the strategy to differentiate its banners from competitors. This approach allows Jerónimo Martins to balance value for money for customers with cost control in sourcing and supply chain management.

Jeronimo Martins stock and market context

Jeronimo Martins stock trades primarily on Euronext Lisbon, reflecting its status as one of the larger consumer staples groups in the Portuguese equity market. As of the latest available quote, the companys market capitalization stands in the billions of euros, underlining its role as a key component of the local benchmark index and an important vehicle for investors seeking exposure to food retail growth in Central and Eastern Europe through the Biedronka banner in Poland.