Jumbo Group's net profit in 2023 amounted to 303.00 million euros, an increase of 21.88% compared to 2022. Group sales exceeded the €1 billion mark and turnover increased by 13.90% compared to 2022 to €1,081.39 million.
Gross margin was maintained at 55.77% compared to 55.92% in the previous corresponding period, supported by a slight decline in transportation costs.
Profit
Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to €398.10 million, compared with €336.75 million in the previous corresponding period, representing an increase of 18.21%. As at 31 December 2023, the group's cash and cash equivalents and other current financial assets exceeded total loans and lease liabilities by EUR 370.41 million compared to EUR 522.48 million as at 31 December 2022.
Management will propose to the general meeting of shareholders to pay a dividend of €1.00 (gross) per share, which represents approximately 45% of the group's net profit.
As noted in the announcement of the results, “the complex strategic choice of daily price reductions in JUMBO stores in an unstable international environment accompanied by significant inflationary factors has finally borne fruit and is now finding many imitators. Consumers have responded to the group’s policy, which has introduced price reductions on thousands of products and continues to remove unreasonably inflated prices from shelves, resulting in increased sales in all countries where it operates.”
The document also notes that “while sales and profitability are optimistic to date, due to the instability associated with the war in the Middle East, management will revise its estimates for the full year 2024 following the announcement of April sales, which reflect 4/5 of the entire Easter season “.
Sales first quarter 2024
JUMBO Group's sales in March 2024 increased by approximately 17% compared to the same month last year, mainly due to seasonal sales in Greece and Cyprus, where Halloween celebrations this year fell on March 17 (February 26 last year). Overall, group sales grew by 6% in the first quarter of 2024.
Sales dynamics by country
Greece
In March 2024, parent company net sales (excluding intercompany transactions) increased approximately 18% as sales were driven by the Halloween holiday in March of that year. Overall, for the first quarter of 2024, parent company net sales (excluding intercompany transactions) increased approximately 4% compared to 2023.
Cyprus
Store sales rose about 27% in March 2024, driven by Halloween festivities this March. Overall, store sales in Cyprus increased by approximately 4% in the first quarter of 2024 compared to the same period last year.
Bulgaria
In March 2024, sales at the chain's stores were up about 10% compared to the same month last year. Total sales in Bulgaria for the first quarter of 2024 increased by approximately 10% compared to the same period last year.
Romania
Sales of the chain, as well as the online store (www.e-jumbo.ro), increased by approximately 14% in March 2024 compared to the same month last year. Overall, sales in Romania in the first quarter of 2024 increased by approximately 13% compared to the same period last year.
The store network is expected to increase by 1,313% year-on-year. As of December 31, 2023, the Jumbo group had 85 stores. 53 of them are located in Greece, 5 in Cyprus, 10 in Bulgaria and 17 in Romania. The group had online stores in Greece, Cyprus and Romania. Thanks to partnerships, it had 36 stores under the JUMBO brand in 7 countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia, Montenegro and Israel).
In April 2024, the renovated Jumbo hypermarket in Karditsa began operations, but was closed due to unprecedented flooding in early September 2023. Also in Oradea (Romania), a new private hypermarket, the second Jumbo store in the city, began operating.
By the end of 2024, a private hypermarket in Nicosia (Cyprus), a private hypermarket in Timisoara (Romania), a private hypermarket in Bucharest (Romania) and the re-opening of a store in Larissa are expected to open.
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