Jumbo SA (JUMSY) Full Year 2024 Earnings Call Highlights: Strong Sales Growth and Strategic ...

In This Article:

  • Sales: Increased by 6% year-over-year, reaching EUR1.15 billion.

  • Gross Margin: Stable at 55.6%.

  • EBITDA: Rose by 7% to EUR425 million.

  • Adjusted EBITDA: Up 4% to EUR414 million.

  • Net Profit: Increased by 6% to EUR320 million.

  • Net Cash Position: EUR372.5 million.

  • Total Cash Distribution: EUR218 million.

  • Share Buyback: Acquired almost 940,000 shares at an average price of EUR25.21 per share, investing almost EUR24 million.

  • Store Expansion: Three new hyper stores opened in 2024; two in Romania and one in Cyprus. Reopened two stores in Greece.

  • Total Stores: 89 stores across four countries.

  • Q1 2025 Sales: Up by 8% year-on-year.

  • Extraordinary Distribution: EUR63.5 million paid in Q1 2025.

  • Future Store Openings: Planned expansions in Greece, Cyprus, Bulgaria, and Romania.

  • Logistics Investment: EUR60 million for two new distribution centers in Thessaloniki and Oinofyta.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Jumbo SA (JUMSY) reported a 6% year-over-year increase in sales, reaching EUR1.15 billion for 2024.

  • The company's EBITDA rose by 7% to EUR425 million, indicating strong operational performance.

  • Jumbo SA (JUMSY) expanded its store network with three new hyper stores in Romania and Cyprus, and reopened two stores in Greece.

  • The company maintained a strong net cash position of EUR372.5 million, providing financial flexibility.

  • Jumbo SA (JUMSY) executed a share buyback program, acquiring 940,000 shares, demonstrating a commitment to returning capital to shareholders.

Negative Points

  • The company faces uncertainty due to global market rebalancing, impacting supply chains and trade dynamics.

  • Jumbo SA (JUMSY) expressed caution regarding dividend payments, preferring to utilize funds for strategic opportunities.

  • The company is wary of potential competitive threats, such as the entry of Dutch retailer Action into the CEE region.

  • There is a risk of increased competition and market saturation in Romania, where the company plans further expansion.

  • Jumbo SA (JUMSY) is concerned about the ongoing geopolitical tensions, particularly in Israel, which could impact operations.

Q & A Highlights

Q: Given the recent escalation in US tariffs on Chinese imports, do you see any opportunities for Jumbo in terms of sourcing or pricing leverage with Chinese suppliers? A: Yes, there are potential opportunities, but we are cautious as we are at the beginning of a significant market rebalancing involving products, currencies, and supply chains. It's too early to predict the exact impact.