Jumbo supports the consumer, defying the geopolitical uncertainty
The dire situation in the Middle East with the "closure" of the Suez Canal, although initially expected to be a temporary phenomenon, due to a lack of political will, will continue to affect the global supply chain, probably even after the US elections.
Global trade is now similar in many ways to the pandemic crisis, with transport costs skyrocketing and the delivery time to receive goods doubling.
The Jumbo Group refuses/objects for consumers to pay the ‘price’ for the inefficiencies in the supply chain.
The strategy remains crystal clear. The JUMBO Group does not intend to load - and therefore offer - opportunistically overpriced products. Management believes the situation should be reversed sometime in late 2024 or in 2025.
JUMBO's choice of products is always in line with both the needs and means of the consumer.
Faced with the dilemma of choosing a product with supply chain inefficiency costs or another with manageable or absorbable costs, Jumbo will always choose the latter. Despite the expected reduction in stock levels by the end of the year, this strategy should lead to an increase in Jumbo's market share in the markets in which it operates.
Today management budgets sales and earnings growth in 2024 will be at the low end (8%) of the sales and earnings growth budget of 8-10% considering:
• the sales performance in the first half of the year (+8%),
• the delays in the delivery of products, and
• the postponement of the opening of Timisoara 2, in Romania, until early 2025
If current conditions deteriorate, which seems likley, it is expected the sales growth rate could be at +4% and profitability could be at the level of 2023.
JUMBO will continue to keep its shareholders- partners promptly informed of any developments.
First half 2024 Sales
Regarding the sales performance in the first half of the year, the Group's sales increased by c. 8% y-o-y.
Greece:
In June 2024, the net sales of the parent company - excluding intragroup sales – increased by c. 6% y-o-y.
Overall, for the first six months of 2024 the net sales of the parent company - excluding intragroup sales – increased by c. 7% y-o-y.
We note that at the beginning of June 2024, the restored Jumbo hyper-store in Larissa, became operational. The store was closed due to the unprecedented floods in early September 2023.
Cyprus
The network's sales increased by c. 6% y-o-y in June 2024. Overall, for the first six months of 2024 the network's sales increased by c. 4% y-o-y.
Bulgaria
The network's sales increased by c. 19% y-o-y in June 2024. Overall, for the first six months of 2024 the network's sales increased by c. 11% y-o-y.
Romania
The network's sales (including the on-line store www.e-jumbo.ro) increased by c. 17% y-o-y in June 2024. Overall, for the first six months of 2024 the network's sales increased by c. 14% y-o-y.
Store network development
As at 30 June 2024, the Jumbo Group had 86 stores, of which 53 in Greece, 5 in Cyprus, 10 in Bulgaria and 18 in Romania and also an online store in Greece, Cyprus and Romania.
In terms of 2024 POS rollout, management guides for:
• a new owned hyper-store in Nicosia and
• a new owned hyper-store in Bucharest (Romania).
The opening of the owned hyper-store in Timisoara (Romania) has been postponed until the first quarter of 2025.
Through partnerships, the Group is present in 7 countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia, Montenegro, Kosovo, Serbia and Israel) with 36 stores under the JUMBO brand. We note that a second store in Israel is expected to open in August 2024.
On 16 July 2024, the dividend from 2023 profits will be paid, corresponding to EUR 1 per share (gross).
Global trade is now similar in many ways to the pandemic crisis, with transport costs skyrocketing and the delivery time to receive goods doubling.
The Jumbo Group refuses/objects for consumers to pay the ‘price’ for the inefficiencies in the supply chain.
The strategy remains crystal clear. The JUMBO Group does not intend to load - and therefore offer - opportunistically overpriced products. Management believes the situation should be reversed sometime in late 2024 or in 2025.
JUMBO's choice of products is always in line with both the needs and means of the consumer.
Faced with the dilemma of choosing a product with supply chain inefficiency costs or another with manageable or absorbable costs, Jumbo will always choose the latter. Despite the expected reduction in stock levels by the end of the year, this strategy should lead to an increase in Jumbo's market share in the markets in which it operates.
Today management budgets sales and earnings growth in 2024 will be at the low end (8%) of the sales and earnings growth budget of 8-10% considering:
• the sales performance in the first half of the year (+8%),
• the delays in the delivery of products, and
• the postponement of the opening of Timisoara 2, in Romania, until early 2025
If current conditions deteriorate, which seems likley, it is expected the sales growth rate could be at +4% and profitability could be at the level of 2023.
JUMBO will continue to keep its shareholders- partners promptly informed of any developments.
First half 2024 Sales
Regarding the sales performance in the first half of the year, the Group's sales increased by c. 8% y-o-y.
- In June 2024, Group’s sales increased by c. 9% y-o-y.
Greece:
In June 2024, the net sales of the parent company - excluding intragroup sales – increased by c. 6% y-o-y.
Overall, for the first six months of 2024 the net sales of the parent company - excluding intragroup sales – increased by c. 7% y-o-y.
We note that at the beginning of June 2024, the restored Jumbo hyper-store in Larissa, became operational. The store was closed due to the unprecedented floods in early September 2023.
Cyprus
The network's sales increased by c. 6% y-o-y in June 2024. Overall, for the first six months of 2024 the network's sales increased by c. 4% y-o-y.
Bulgaria
The network's sales increased by c. 19% y-o-y in June 2024. Overall, for the first six months of 2024 the network's sales increased by c. 11% y-o-y.
Romania
The network's sales (including the on-line store www.e-jumbo.ro) increased by c. 17% y-o-y in June 2024. Overall, for the first six months of 2024 the network's sales increased by c. 14% y-o-y.
Store network development
As at 30 June 2024, the Jumbo Group had 86 stores, of which 53 in Greece, 5 in Cyprus, 10 in Bulgaria and 18 in Romania and also an online store in Greece, Cyprus and Romania.
In terms of 2024 POS rollout, management guides for:
• a new owned hyper-store in Nicosia and
• a new owned hyper-store in Bucharest (Romania).
The opening of the owned hyper-store in Timisoara (Romania) has been postponed until the first quarter of 2025.
Through partnerships, the Group is present in 7 countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia, Montenegro, Kosovo, Serbia and Israel) with 36 stores under the JUMBO brand. We note that a second store in Israel is expected to open in August 2024.
On 16 July 2024, the dividend from 2023 profits will be paid, corresponding to EUR 1 per share (gross).