The activities and financial figures of the JUMBO Group as well as the plans for the financial year that started in January 2022 were presented on 12.04.2022 in the context of the annual briefing of the company’s analysts in the Association of Institutional Investors.
Despite the excellent results of 2021 and the high growth rate of sales already recorded in the first quarter of 2022, the challenges for the new year as well as the climate of uncertainty remain.
The situation in the supply chain shows no signs of improvement while the cost of transporting products remains at prohibitive levels.
In addition, the trend in demand is not clear as it continues to be affected by epidemic outbreaks mainly during the winter months but also by inflationary pressures.
In this environment of intense uncertainty, the primary goal of the management of the JUMBO Group was and remains, to preserve the Jumbo model towards the consumer, in terms of price-quality relationship with the quality of services and the product offered.
Taking into account the current conditions in the market, the management of the Group has budgeted for 2022:
that the sales will increase between + 2% and + 5%
The pre-tax profits It is estimated that they will range between 210 million Euros and 240 million Euros
The net profits It is estimated that they will range between 175 million Euros and 195 million Euros
Despite the particular difficulties and the extremely increased cost of raw materials, the JUMBO Group continues its investment program smoothly. As early as March 18, 2022, the new branch of the Group in Mytilene started operating.
Today, the JUMBO Group operates 82 stores. The 53 are located in Greece, 5 in Cyprus, 9 in Bulgaria, 15 in Romania, while by the end of the year another store will be open in Romania.
How the size of the Group evolved in 2021
2021 was another year in which the operation of the stores was affected by the restrictive measures due to the pandemic imposed by the governments in the countries in which the Group operates.
As the management of the Group has already informed in 2021:
sales increased + 19.87% compared to 2020 and amounted to 831.92 million Euros.
the gross profit margin stood at 55.66% from 51.78% in 2020
Profits before Taxes, Interest, and Depreciation (EBITDA) of the Group amounted to 304.99 million Euros from 209.06 million Euros in 2020, showing an explosive increase of + 46%, exceeding the figures of 2019.
The net profits of the Group amounted to 216.59 million Euros from 138.67 million Euros, increased by + 56.19%
As at 31 December 2021, the cash and cash equivalents and other current financial assets of the Group were higher than the total amount of its loan liabilities and lease liabilities, by € 549.14 million compared to € 359.32 million as of 31.12.2020.
The course of the first quarter 2022
Regarding the sales of the JUMBO Group in March 2022 increased by + 71% compared to the corresponding month last year as the network in Greece and Cyprus remained open while there was a relaxation of the measures imposed in Bulgaria and Romania. As a result, the Group’s sales, for the first quarter of 2022, increase by + 22%.
Detailed sales course by country:
Hellas: In March 2022, all stores in Greece remained open, without the imposition of new restrictions except of course those concerning the unvaccinated.
For March 2022, the net sales of the parent company and excluding intra-company transactions, more than doubled compared to March 2021 when almost all stores in Greece remained closed. Overall for the first quarter of 2022, the net sales of the parent company – excluding intra-corporate transactions – increased by about + 48% compared to the corresponding quarter last year.
Cyprus: All stores continued to operate without new restrictions. Sales in March 2022 appear reduced by about -2%, compared to the corresponding month last year. Overall sales in Cyprus for the first quarter of 2022 are increased by about + 27%, compared to the corresponding quarter last year.
Bulgaria: Certificate checks imposed on stores ceased at the end of February. The sales of the network recorded an increase of + 42% in March 2022, compared to the corresponding month last year where the stores remained closed by about 1/3 of March 2021. Overall sales in Bulgaria for the first quarter of 2022 are reduced by about -12%, compared to the corresponding quarter last year.
Romania: At the beginning of March, the certificate checks that had been imposed on the stores stopped. The sales of the network recorded an increase of + 3% in March 2022, compared to the corresponding month last year. Overall, sales in Romania for the first quarter of 2022 are down by about -12%, compared to the same quarter last year.
Dividend policy
As of today, the intention of the Group’s management is to maintain in full the dividend policy of 2021 and for 2022.
In the first stage, at the recent Extraordinary General Meeting, the shareholders approved the proposal of the management for the payment of extraordinary cash distribution for 2022 gross amount of 0.3850 euros per share, ie an amount equal to 50% of the total amount distributed for 2021 .
Source: Capital
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