Profitability increased by 14,3% in H1 2024. Share buyback and cancellation to be approved today
During today's Extraordinary General Meeting, the management of the Jumbo Group will have the opportunity to inform its shareholder- partners regarding the financial performance in the countries which it operates.
H1 2024 financial profitability demonstrates double-digit growth compared to last year, but this is largely due to the insurance compensation of the stores and activities affected by the devastating floods last autumn.
Acute irregularities in the global supply chain are still unresolved. The doubling of goods delivery times and the increase in transport costs will have an impact in the second half of the year.
On one hand the geopolitical tensions in the Red Sea with the closure of the Suez more than doubled transport costs, while on the other utilization of existing inventories, a more favorable dollar rate, as well as suppliers absorbing part of the transport costs, proved instrumental to maintain the gross margin at last year's level.
The Jumbo Group has adjusted its stocking and delivery policy accordingly. The sole aim is to keep retail prices at a level in line with consumer incomes.
Based on current data and assuming no change, it is management expects sales to grow by +4% in 2024 and that organic profitability will flirt with 2023 levels.
Snapshot of H1 2024 Results
Sales increased by 8,37% y-o-y to EUR 460,38 million from EUR 424,83 million in the first half of 2023.
Gross margin remained at the same level as the previous period, at 55,27% from 55,30% million in the first half of 2022 negatively impacted by higher freight rates.
The Group's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reached EUR 164,68 million from EUR 146,49 million in the first half of 2023, implying an increase of 12,42% y-o-y.
Excluding the impact of insurance claims, EBITDA amounted to EUR 154,47 mil, an increase of 5,45%. The increase in operating expenses is due to the opening of new stores and the operation of new warehouses in Romania.
The Group's net profit stood at EUR 121,69 million from EUR 106,45 million, increased by 14,32% y-o-y.
Excluding the impact of insurance claims, Group's net profit stood at EUR 111,48 million, increased by 4,73% y-o-y.
We note in the first half of 2024, the amount of EUR 10,21 million related to insurance compensation for the Larissa and Karditsa stores, which closed due to unprecedented floods at the beginning of September 2023.
Liquidity
As at 30.06.2024, the Group's cash and cash equivalents and other current financial assets were higher than the total borrowings and lease liabilities by EUR 351,37 million compared to EUR 370,41 million as at 31.12.2023.
The Annual General Meeting of Shareholders held on 22 May 2024 approved the management's proposal to pay a dividend out of 2023 profits of EUR 1,00 per share (gross), before withholding tax, i.e. a total of EUR 136,06 million. The net cash distribution, after deduction of 5% withholding tax e, was EUR 0,95 per share and payment to beneficiaries commenced on 16 July 2024.
Year to date, Jumbo Group awarded shareholders- partners, the amount of EUR 1,60 per share (gross), before withholding tax or EUR 217,7 mil.
During the Extraordinary General Meeting which will be held today (26 September 2024) Jumbo’s shareholders are invited to approve the management’s proposal of a two-year share buy-back program of up to 10% of the share capital. Any shares acquired will be cancelled.
Management believes that, at the current share price, the share buy-back program rewards existing shareholders for their confidence by giving them the opportunity (instead of an additional dividend), to invest indirectly by increasing their shareholding in the Company.
A minimum purchase price of EUR 1 per share and a maximum purchase price of EUR 27,20 per share will be proposed.
Store network
During the first half of 2024, the fully renovated Jumbo hyper-stores in Larissa and Karditsa, which were closed due to Daniel storm, re-started operations.
In Oradea, Romania, the new freehold hyper-store opened. It is the second Jumbo store in the city.
By the end of 2024, two more hyperstores will be added:
- a freehold hyper-store in Bucharest (Romania)
- a freehold hyper-store in Cyprus
As of 30 June 2024, the Jumbo Group had 86 stores. 53 are in Greece, 5 in Cyprus, 10 in Bulgaria and 18 in Romania. The Group has online stores in Greece, Cyprus and Romania.
Through partnerships, it had a presence with 36 stores bearing the JUMBO brand in 7 countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia, Montenegro, Kosovo, Serbia and Israel).
It is noted that in September 2024 the second store opened in Israel.
H1 2024 financial profitability demonstrates double-digit growth compared to last year, but this is largely due to the insurance compensation of the stores and activities affected by the devastating floods last autumn.
Acute irregularities in the global supply chain are still unresolved. The doubling of goods delivery times and the increase in transport costs will have an impact in the second half of the year.
On one hand the geopolitical tensions in the Red Sea with the closure of the Suez more than doubled transport costs, while on the other utilization of existing inventories, a more favorable dollar rate, as well as suppliers absorbing part of the transport costs, proved instrumental to maintain the gross margin at last year's level.
The Jumbo Group has adjusted its stocking and delivery policy accordingly. The sole aim is to keep retail prices at a level in line with consumer incomes.
Based on current data and assuming no change, it is management expects sales to grow by +4% in 2024 and that organic profitability will flirt with 2023 levels.
Snapshot of H1 2024 Results
Sales increased by 8,37% y-o-y to EUR 460,38 million from EUR 424,83 million in the first half of 2023.
Gross margin remained at the same level as the previous period, at 55,27% from 55,30% million in the first half of 2022 negatively impacted by higher freight rates.
The Group's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reached EUR 164,68 million from EUR 146,49 million in the first half of 2023, implying an increase of 12,42% y-o-y.
Excluding the impact of insurance claims, EBITDA amounted to EUR 154,47 mil, an increase of 5,45%. The increase in operating expenses is due to the opening of new stores and the operation of new warehouses in Romania.
The Group's net profit stood at EUR 121,69 million from EUR 106,45 million, increased by 14,32% y-o-y.
Excluding the impact of insurance claims, Group's net profit stood at EUR 111,48 million, increased by 4,73% y-o-y.
We note in the first half of 2024, the amount of EUR 10,21 million related to insurance compensation for the Larissa and Karditsa stores, which closed due to unprecedented floods at the beginning of September 2023.
Liquidity
As at 30.06.2024, the Group's cash and cash equivalents and other current financial assets were higher than the total borrowings and lease liabilities by EUR 351,37 million compared to EUR 370,41 million as at 31.12.2023.
The Annual General Meeting of Shareholders held on 22 May 2024 approved the management's proposal to pay a dividend out of 2023 profits of EUR 1,00 per share (gross), before withholding tax, i.e. a total of EUR 136,06 million. The net cash distribution, after deduction of 5% withholding tax e, was EUR 0,95 per share and payment to beneficiaries commenced on 16 July 2024.
Year to date, Jumbo Group awarded shareholders- partners, the amount of EUR 1,60 per share (gross), before withholding tax or EUR 217,7 mil.
During the Extraordinary General Meeting which will be held today (26 September 2024) Jumbo’s shareholders are invited to approve the management’s proposal of a two-year share buy-back program of up to 10% of the share capital. Any shares acquired will be cancelled.
Management believes that, at the current share price, the share buy-back program rewards existing shareholders for their confidence by giving them the opportunity (instead of an additional dividend), to invest indirectly by increasing their shareholding in the Company.
A minimum purchase price of EUR 1 per share and a maximum purchase price of EUR 27,20 per share will be proposed.
Store network
During the first half of 2024, the fully renovated Jumbo hyper-stores in Larissa and Karditsa, which were closed due to Daniel storm, re-started operations.
In Oradea, Romania, the new freehold hyper-store opened. It is the second Jumbo store in the city.
By the end of 2024, two more hyperstores will be added:
- a freehold hyper-store in Bucharest (Romania)
- a freehold hyper-store in Cyprus
As of 30 June 2024, the Jumbo Group had 86 stores. 53 are in Greece, 5 in Cyprus, 10 in Bulgaria and 18 in Romania. The Group has online stores in Greece, Cyprus and Romania.
Through partnerships, it had a presence with 36 stores bearing the JUMBO brand in 7 countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia, Montenegro, Kosovo, Serbia and Israel).
It is noted that in September 2024 the second store opened in Israel.