Jeronimo Martins: Q4 trading statement: Jeronimo Martins commands respect!

NEUTRAL, Fair Value EUR13,5 (+7%)
News published on January Wednesday 13, 2016
Share on

We admire Jeronimo Martins’ exemplary model that should benefit from the move in favour of both discount and proximity within the industry going forward. Once again, the retailer showed its class by publishing its strongest LFL rates for two years at Biedronka (+3.8% in Q4), while Pingo Doce keeps showing an impressive performance (+4.1% LFL excl. fuel). Within a sector suffering from anorexic growth (a disruptive factor in a fixed-cost industry), Jeronimo is the best-in-class. Only the uncertainty about the implementation of a retail tax in Poland and to a lesser extent the valuation (22x 2016 P/E vs 16x for the panel or 15x excluding Tesco) prevent us from buying the stock.

For more information, please contact

The Essentials

Everything you need to know about investment banking dedicated to growth
Recent Transactions Highlights
From M&A, to IPOs see what’s been happening at Bryan, Garnier & Co this year
Join our Team
Bryan, Garnier & Co is always looking for talent in all our divisions, at all levels
Explore our opportunities