Successful balanced management of the first 6 months, of the lockdown and of the peak of the first phase of the pandemic
The steadily growing confidence of the consumers in the products and services of the JUMBO stores, allowed the Group to balance - with small losses - the 6-month financial statements, despite the general difficult and uncertain situation in the retail business.
In total, during the first six months (January –June 2020) the Group’s sales stood at EUR 278,82 million, presenting a decrease of approximately -16,88% as compared to the previous respective period, with a turnover of EUR 335,43 million.
• In Greece sales decreased by -21,29% y-o-y
• In Cyprus sales decreased by -22,95% y-o-y
• In Bulgaria sales decreased by -13,07% y-o-y
• In contrast, in the Romanian market there was a small increase of + 3,33% y-o-y including the store in Brasov which started its operation in November 2019
During the first 6 months of the year, the Group’s gross profit stood at EUR 144,95 million decreased by -20,23% (compared to EUR 181,71 million of the respective period in 2019). The gross profit margin stood at 51,99% from 54,17% the previous respective period.
The significant contraction of the gross profit margin is due to the 2,5 months lockdown in Greece and Cyprus as well as due to the very serious restrictions for the movement of citizens in all Balkan countries. This period also included the Easter Season. The company was forced to either dispose of seasonal products or offer them at prices dramatically below cost.
With the reopening of the stores, a gradual recovery of the gross is expected during the third quarter as well as during the Christmas period.
During the same period, the restraining of operating costs led the Net Consolidated Profits after taxes at EUR 49,81 million versus the previous respective period which stood at EUR 64,13 million., i.e. decreased by -22,34% y-o-y.
During the lockdown period, the Group adjusted its purchase strategy taking into account the period of the stores’ inactivity. However, the Group remained consistent in its obligations to the employees, the suppliers, the state and the shareholders. Consequently, on the last day of June 2020, cash and other current financial assets amounted to EUR 598,37 million from EUR 506,63 million on 30.06.2019.
Store Network
As at 30.06.2020, the Group’s network had 80 stores, 52 of which are located in Greece, 5 in Cyprus, 9 in Bulgaria and 14 in Romania, while the on line store www.e-Jumbo.gr was operating in Greece. In June 2020 the online store in Cyprus became operational.
Furthermore, the Company, through collaborations, had presence, with 26 stores operating under the JUMBO brand, in six countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia and Montenegro).
Investment Strategy
The Group continues to implement its investment plans. However, due to long delays in obtaining authorizations for the related works due to the pandemic, it is estimated that the three stores that were scheduled to open in 2020 will open in the last quarter of 2021.
Dividend policy
Despite the obvious difficulty in predicting future developments in the financial figures and the ambiguity created by the pandemic, the management's plan regarding the dividend that it intends to distribute for the current year remains unchanged:
• The total amount that will be distributed to the shareholders will be equal to that of the twelve month financial year from 1.7.2018 to 30.6.2019, ie EUR 0,47 per share.
In order to implement the above plan, the Extraordinary General Meeting of the shareholders of June 25th, 2020, approved a distribution of 50% of the above amount, i.e. a gross amount of EUR 0,235 per share. The payment started on July 6th , 2020.
Announcement
In total, during the first six months (January –June 2020) the Group’s sales stood at EUR 278,82 million, presenting a decrease of approximately -16,88% as compared to the previous respective period, with a turnover of EUR 335,43 million.
• In Greece sales decreased by -21,29% y-o-y
• In Cyprus sales decreased by -22,95% y-o-y
• In Bulgaria sales decreased by -13,07% y-o-y
• In contrast, in the Romanian market there was a small increase of + 3,33% y-o-y including the store in Brasov which started its operation in November 2019
During the first 6 months of the year, the Group’s gross profit stood at EUR 144,95 million decreased by -20,23% (compared to EUR 181,71 million of the respective period in 2019). The gross profit margin stood at 51,99% from 54,17% the previous respective period.
The significant contraction of the gross profit margin is due to the 2,5 months lockdown in Greece and Cyprus as well as due to the very serious restrictions for the movement of citizens in all Balkan countries. This period also included the Easter Season. The company was forced to either dispose of seasonal products or offer them at prices dramatically below cost.
With the reopening of the stores, a gradual recovery of the gross is expected during the third quarter as well as during the Christmas period.
During the same period, the restraining of operating costs led the Net Consolidated Profits after taxes at EUR 49,81 million versus the previous respective period which stood at EUR 64,13 million., i.e. decreased by -22,34% y-o-y.
During the lockdown period, the Group adjusted its purchase strategy taking into account the period of the stores’ inactivity. However, the Group remained consistent in its obligations to the employees, the suppliers, the state and the shareholders. Consequently, on the last day of June 2020, cash and other current financial assets amounted to EUR 598,37 million from EUR 506,63 million on 30.06.2019.
Store Network
As at 30.06.2020, the Group’s network had 80 stores, 52 of which are located in Greece, 5 in Cyprus, 9 in Bulgaria and 14 in Romania, while the on line store www.e-Jumbo.gr was operating in Greece. In June 2020 the online store in Cyprus became operational.
Furthermore, the Company, through collaborations, had presence, with 26 stores operating under the JUMBO brand, in six countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia and Montenegro).
Investment Strategy
The Group continues to implement its investment plans. However, due to long delays in obtaining authorizations for the related works due to the pandemic, it is estimated that the three stores that were scheduled to open in 2020 will open in the last quarter of 2021.
Dividend policy
Despite the obvious difficulty in predicting future developments in the financial figures and the ambiguity created by the pandemic, the management's plan regarding the dividend that it intends to distribute for the current year remains unchanged:
• The total amount that will be distributed to the shareholders will be equal to that of the twelve month financial year from 1.7.2018 to 30.6.2019, ie EUR 0,47 per share.
In order to implement the above plan, the Extraordinary General Meeting of the shareholders of June 25th, 2020, approved a distribution of 50% of the above amount, i.e. a gross amount of EUR 0,235 per share. The payment started on July 6th , 2020.
Announcement