Breaking Down Jerónimo Martins, SGPS, S.A. Financial Health: Key Insights for Investors

Curious how Jerónimo Martins' 2025 performance reshapes its investment appeal? With first-half sales climbing 6.7% to €17.4 billion and EBITDA up 10.3% to €1.1 billion, the group delivered a net profit of €269 million despite a negative cash flow of €157 million driven by heavy investments and dividends; quarterly snapshots show Q1 sales of €8.4 billion (+3.8%) with EBITDA €528 million (6.3% margin), Q2 EBITDA €620 million (+17% YoY), and Q3 net sales €9.14 billion (+7.9%) with net income €214 million (+14%), while the balance sheet posts total assets of €15.6 billion, shareholder equity of €3.4 billion, debt of €1.1 billion (debt-to-equity ~31.7%), cash and short-term investments of €1.7 billion and net cash positions of €213-€467 million excluding leasing effects-set against competitive pressures, labor cost inflation and low basket inflation, and supported by a 196-store expansion and ongoing investment program-these hard numbers frame the trade-offs investors must weigh.

Jerónimo Martins, SGPS, S.A. (JMT.LS) Revenue Analysis

• H1 2025 sales rose 6.7% to €17.4 billion, with EBITDA up 10.3% to €1.1 billion.
• Q1 2025 sales increased 3.8% to €8.4 billion; EBITDA also grew 3.8% to €528 million, keeping an EBITDA margin of 6.3%.
• Q3 2025 net sales and services reached €9.14 billion, a 7.9% year-over-year increase; net income was €214 million, up 14% year-over-year.
• H1 2025 net profit totaled €269 million, while cash flow was negative €157 million due to elevated investments and dividend payouts.

• Margin resilience: EBITDA expansion outpaced sales growth in H1 2025, indicating operational efficiencies and favorable category mix.
• Profit vs. cash: Positive net profit (€269m H1 2025) contrasted with negative cash flow (‑€157m), reflecting heavy capex and shareholder returns-important when assessing free cash flow sustainability.
• Quarterly consistency: Q1 and Q3 2025 data show consistent top-line growth trajectory (3.8% and 7.9%), supporting the year's progressive revenue trend.
• Market expectations: Q3 net sales met market expectations, reinforcing confidence in execution across core geographies.

Jerónimo Martins, SGPS, S.A. (JMT.LS) - Profitability Metrics

Jerónimo Martins delivered a strong profitability performance across 2025, with sustained EBITDA growth, improving net income and stable margins despite negative free cash flow driven by elevated investments and shareholder distributions.

• H1 2025 EBITDA: €1.1 billion (+10.3% year-over-year).
• H1 2025 Net profit: €269 million; Free cash flow: -€157 million (impacted by capex and dividends).
• Q1 2025 EBITDA: €528 million (+3.8% year-over-year) with a stable margin of 6.3%.
• Q2 2025 EBITDA: €620 million (+17% year-over-year), above estimate (€599.7 million).
• Q3 2025 EBITDA: €664 million (+12% year-over-year), slightly ahead of estimate (€648.5 million).
• Latest reported net income: €214 million (+14% year-over-year in the period reported).

Investor-focused implications:

• Margin stability: Q1 margin held at 6.3% while sequential EBITDA gains point to operational leverage across core markets.
• Quality of earnings: EBITDA growth outpaced inflation in key markets, supporting a 14% rise in reported net income in the latest comparable period.
• Capital deployment vs. cash generation: Negative free cash flow (-€157m in H1 2025) signals heavy reinvestment and shareholder returns; monitor capex and working capital trends.
• Beat vs. estimates: Q2 and Q3 EBITDA prints exceeded consensus (Q2: €620m vs €599.7m; Q3: €664m vs €648.5m), indicating upside to street expectations.

For context on strategic priorities and how profitability links to longer-term objectives, see Mission Statement, Vision, & Core Values (2026) of Jerónimo Martins, SGPS, S.A.

Jerónimo Martins, SGPS, S.A. (JMT.LS) - Debt vs. Equity Structure

• Total shareholder equity: €3.4 billion
• Total debt: €1.1 billion
• Total assets: €15.6 billion
• Total liabilities: €12.2 billion
• Cash and short-term investments: €1.7 billion
• EBIT: €1.3 billion

• Leverage profile: headline debt-to-equity of 31.7% (0.317) indicates relatively low nominal debt versus equity, while a TTM debt-to-equity of 1.64 signals higher leverage on a trailing basis-interpretation depends on definition and timing of instruments recorded as debt.
• Coverage and liquidity: EBIT of €1.3 billion yields an interest coverage ratio of 4.2, reflecting comfortable but not excessive ability to meet interest payments; €1.7 billion in cash/short-term investments provides near-term liquidity buffer.
• Balance sheet composition: equity ratio of 20.46% TTM shows equity finances roughly one-fifth of assets, with liabilities making up the remainder; total liabilities (€12.2 bn) versus assets (€15.6 bn) confirm this capital mix.

Jerónimo Martins, SGPS, S.A. (JMT.LS) - Liquidity and Solvency

Jerónimo Martins displays a solid short-term liquidity profile and conservative leverage metrics through 2025, supported by recurring operating cash flows and pockets of net cash when excluding lease capitalization and IFRS16 impacts.

• Net cash (ex-IFRS16): €213 million in H1 2025.
• Net cash (ex-capitalized leases): €467 million (most recent balance-sheet presentation).
• Quarterly net income: €127 million in Q1 2025 (up 31% YoY); €214 million in Q3 2025.
• EBITDA: €528 million in Q1 2025 (+3.8% YoY; margin 6.3%); €620 million in Q2 2025 (+17% YoY; beat estimate of €599.7 million).

Key liquidity and solvency implications for investors are:

• Positive net cash positions (on adjusted bases) reduce refinancing risk and provide flexibility for capex, buybacks or dividends.
• Consistent EBITDA growth across Q1-Q2 2025, with margins holding at ~6.3% in Q1, supports coverage metrics (interest and lease-adjusted leverage).
• Quarterly net income improvements indicate operating leverage and effective cost or sales mix management.
• Investors should consider IFRS16 and lease capitalization adjustments when comparing leverage versus peers.

Further context and investor audience breakdown: Exploring Jerónimo Martins, SGPS, S.A. Investor Profile: Who's Buying and Why?

Jerónimo Martins, SGPS, S.A. (JMT.LS) - Valuation Analysis

Key balance-sheet and profitability metrics paint a picture of a company with sizeable scale, meaningful liquidity and moderate leverage. The following figures are central for valuation and risk assessment.

• Liquidity cushion: €1.7b in cash and short-term investments provides flexibility for capex, working capital needs or opportunistic deployment.
• Profitability vs. financing cost: EBIT of €1.3b yields an interest coverage of 4.2x, indicating comfortable ability to service interest but not an extreme buffer against large earnings shocks.
• Leverage interpretation: the simple debt/equity calculation (31.7%) shows relatively low gross debt vs equity, while the TTM debt-to-equity of 1.64x signals higher effective leverage when different debt definitions or off-balance items are included-investors should reconcile which basis applies for comparisons.
• Capital structure: equity ratio of 20.46% TTM implies ~79.54% of assets are financed by liabilities, highlighting reliance on non-equity funding typical for large retail/consumer companies with significant working capital and lease obligations.

For context on corporate purpose and long-term strategy that affect valuation assumptions (growth, reinvestment, margins), see Mission Statement, Vision, & Core Values (2026) of Jerónimo Martins, SGPS, S.A.

Jerónimo Martins, SGPS, S.A. (JMT.LS) - Risk Factors

• Macroeconomic pressures: low consumer confidence, higher wages and persistent input-cost inflation (energy, transport, wages).
• Margin squeeze: basket deflation reduces gross sales per ticket while labor and operating costs rise.
• Competitive intensity in Poland: price-led competition and promotional activity put continuous pressure on pricing power.
• Operational risk: higher SG&A and staffing costs while needing to invest in omnichannel and logistics to retain market share.
• External shocks: geopolitical uncertainty can abruptly shift demand patterns and supply-chain costs.

• Investor implications: earnings beat in Q2 2025 (EBITDA €620m, +17% YoY) signals operational adaptability, but persistent basket deflation and labor cost inflation warrant monitoring of margin recovery strategies.
• Risk monitoring checklist: wage inflation trends, promotional intensity in Poland, weekly like-for-like sales, and changes in consumer basket composition.

Jerónimo Martins, SGPS, S.A. (JMT.LS) - Growth Opportunities

• Commitment to continued investment program focused on store expansion and operational efficiency.
• Price competitiveness and enhancement of value propositions across Portugal, Poland and emerging markets.
• Selective market expansion (notably openings in Slovakia and distribution-network expansion in Q1 2025).
• Balance-sheet strength enabling flexibility: maintained net cash position excluding IFRS16.

• Operational levers: store productivity gains, portfolio modernizations and logistics scaling to offset cost pressures.
• Financial levers: net-cash buffer of €213m (ex-IFRS16) supports capex and selective M&A or market-entry opportunities.
• Execution indicators: 196 openings and 71 remodels in H1 2025 signal rapid retail footprint densification.