Jerónimo Martins shares hit records in June
The shares of Portuguese food distribution group Jerónimo Martins, which holds supermarkets such as Pingo Doce in Portugal and Biedronka in Poland, have been changing hands for record amounts this month.
Analysts claim that this has something to do with the listed company’s business model; the company has managed to expand without sacrificing its financial results. Moreover, inflation has boosted profits for the food retailer.
Since the start of the year, Jerónimo Martins has advanced 25.17%, exceeding the overall performance of the PSI which gained 5.51% in value. Investor appetite in turn has increased this month: it has already climbed 11.87% and share prices have reached six records at the close of business.
This began on June 1 when the company’s shares hit a new record and would go on to hit other records later in the month on 2nd, 8th, 12th, 13th, 15th and 16th of June when shares reached €25.58.
“Jerónimo Martins has been beating records after analysts raised the company’s prospects after it released its financial results which were very buoyant for its business in Poland and Colombia”, the CEO of Optimize Investment Partners, Pedro Lino told the business daily Negócios.
The company’s EBITDA increased 20.1% in the first quarter to €446 million on the like-for-like period, of which €390 million came from Biedronka.
Moreover, its business model has enabled the group to flourish “even in adverse conditions”, conquering new customers and increase its market share without significantly reducing its margin”, Pedro Barata, CEO of CFA Society told the same news source.