Consumers respond impressively to JUMBO's campaign of price reductions
Jumbo Group's genuine and consistent efforts to bridge the gap between product prices and consumer income bears fruit.
Up to date, Jumbo Group has reduced prices in 9.000 SKU’s. This has helped to stabilize the downward trend in consumption, despite the persistent and extremely unfavorable economic and geopolitical conditions.
In October 2023, the Group’s sales increased by c. 5% y-o-y.
During a period when multinational companies still show reluctance and hesitation to adjusting their price to becoming compatible with the Greek consumer's income. Jumbo's strategic decision to proactively reduce prices has had an impressive response rate from consumers in Greece and in all the countries where the Group operates. This has created an unbreakable bond with the struggling consumer.
Management will continue to inform the investment community with monthly trading updates.
Sales performance by country:
Greece:
In October 2023, the net sales of the parent company - excluding intragroup sales – increased by c. 4% y-o-y.
Overall, for the 10-month period of 2023, the net sales of the parent company - excluding intragroup sales – increased by c. 17% y-o-y.
We remind stakeholders that due to the unprecedented flooding in early September, one of the two stores in Larissa and the store in Karditsa remain closed. The company continues to work towards the full restoration and reopening of the stores.
Cyprus:
The network's sales decreased by c. -5% y-o-y in October 2023 compared to hard comps due to explosive over-performance.
Overall, for the 10-month period of 2023 the network's sales increased by c. 13% y-o-y.
Bulgaria:
The network's sales increased by c. 3% y-o-y in October 2023. Overall, for the 10-month period of 2023 the network's sales increased by c. 14% y-o-y.
It should be noted that on November 8 the new-leased hyperstore in the center of Plovdiv was officially opened.
Romania:
The network's sales (including the on-line store www.e-jumbo.ro) increased by c. 14% y-o-y in October 2023.
Overall, for the 10-month period of 2023 the network's sales increased by c. 16% y-o-y.
It should be noted that the new owned hyper-store in Iasi (Romania) was successfully launched in October.
Payment of an extraordinary cash distribution
As previously announced, on 18 October the Extraordinary General Meeting of Shareholders of the Jumbo Group approved the management's proposal for a cash distribution of a total amount of € 200.008.000,00 out of the taxed and undistributed profits of previous years, corresponding to a gross amount of 1,47 EUR/ share.
Thursday 23 November 2023 is set as the cut-off date. The payment of the extraordinary cash distribution to the entitled shareholders shall begin on Wednesday, 29 November 2023.
Up to date, Jumbo Group has reduced prices in 9.000 SKU’s. This has helped to stabilize the downward trend in consumption, despite the persistent and extremely unfavorable economic and geopolitical conditions.
In October 2023, the Group’s sales increased by c. 5% y-o-y.
- Overall, for the 10-month period, the Group sales increased by c. 16% y-o-y which is higher than management's estimate of annual sales growth of c. +12% y-o-y.
During a period when multinational companies still show reluctance and hesitation to adjusting their price to becoming compatible with the Greek consumer's income. Jumbo's strategic decision to proactively reduce prices has had an impressive response rate from consumers in Greece and in all the countries where the Group operates. This has created an unbreakable bond with the struggling consumer.
Management will continue to inform the investment community with monthly trading updates.
Sales performance by country:
Greece:
In October 2023, the net sales of the parent company - excluding intragroup sales – increased by c. 4% y-o-y.
Overall, for the 10-month period of 2023, the net sales of the parent company - excluding intragroup sales – increased by c. 17% y-o-y.
We remind stakeholders that due to the unprecedented flooding in early September, one of the two stores in Larissa and the store in Karditsa remain closed. The company continues to work towards the full restoration and reopening of the stores.
Cyprus:
The network's sales decreased by c. -5% y-o-y in October 2023 compared to hard comps due to explosive over-performance.
Overall, for the 10-month period of 2023 the network's sales increased by c. 13% y-o-y.
Bulgaria:
The network's sales increased by c. 3% y-o-y in October 2023. Overall, for the 10-month period of 2023 the network's sales increased by c. 14% y-o-y.
It should be noted that on November 8 the new-leased hyperstore in the center of Plovdiv was officially opened.
Romania:
The network's sales (including the on-line store www.e-jumbo.ro) increased by c. 14% y-o-y in October 2023.
Overall, for the 10-month period of 2023 the network's sales increased by c. 16% y-o-y.
It should be noted that the new owned hyper-store in Iasi (Romania) was successfully launched in October.
Payment of an extraordinary cash distribution
As previously announced, on 18 October the Extraordinary General Meeting of Shareholders of the Jumbo Group approved the management's proposal for a cash distribution of a total amount of € 200.008.000,00 out of the taxed and undistributed profits of previous years, corresponding to a gross amount of 1,47 EUR/ share.
Thursday 23 November 2023 is set as the cut-off date. The payment of the extraordinary cash distribution to the entitled shareholders shall begin on Wednesday, 29 November 2023.