July 14, 2024

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Jumbo: Lowers the bar for sizes year-round

Jumbo: Lowers the bar for sizes year-round

Jumbo Group’s sales rose by around 8% in the first half of the year, while a +9% increase was recorded in June, compared to the corresponding month last year, the listed company reported, which, however, now sets the benchmark for full-year revenue and profit growth at the lower end of the original estimate of between 8% and 10%.

He even warns that if current conditions worsen, which is reasonably expected, sales growth is estimated to be limited to +4% with profitability hovering around 2023 levels.

More specifically, commenting on the business environment and indicating the reasons for the slight differential in its valuation, the listed company notes: “It is now generally accepted that the situation in the Middle East, with the ‘closure’ of the Suez Canal and although the canal was initially of a temporary nature, due to a lack of political will, will continue to impact the global supply chain perhaps even after the US elections.

The current situation in global trade is, on many levels, similar to the pandemic crisis, as transportation costs have risen dramatically and the time to receive goods and merchandise has doubled.

JUMBO Group refuses to shift the burden of supply chain disruptions onto the prices consumers will be asked to pay.

The strategy remains clear. JUMBO Group does not intend to load up on seasonally expensive products, and therefore offer them, as management estimates that the situation should reverse sometime in late 2024 or 2025.

JUMBO always selects products that meet the needs and capabilities of consumers.

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Given the dilemma of choosing a product that entails the cost of supply chain disruptions and one whose costs can be controlled or absorbed, Jumbo will consistently choose the latter. This strategy is expected to increase Jumbo’s share in the markets it operates in despite the expected decline in inventories by the end of the year.

Today, Jumbo Group management’s estimates for revenue and earnings growth in 2024 are at the lower end (8%) of the initial estimate of revenue and earnings growth between 8% and 10%, taking into account:

– Sales trajectory in the first half of the year (+8%),
– Delay in product deliveries and
Timisoara 2 opening in Romania postponed to early 2025

Should current conditions deteriorate, which is reasonably expected, sales growth is estimated to be limited to +4% with profitability hovering around 2023 levels.

JUMBO will continue to inform its shareholders and partners in a timely manner of any developments.

1st half sales 2024

Regarding the sales trajectory during the first half of the year, the group’s sales appear to have increased by approximately +8%.

For the JUMBO Group, June 2024 was the month that recorded an overall sales increase of +9%, compared to the corresponding month last year.

Detailed sales by country

Hellas: In June 2024, the parent company’s net sales (excluding intra-company transactions) increased by approximately +6%.

Overall, for the first half of 2024, the parent company’s net sales – excluding intercompany transactions – showed an increase of approximately +7% compared to 2023.

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It is noteworthy that at the beginning of June, the fully renovated Jumbo Supermarket in Larissa, which had been closed due to the unprecedented flooding phenomenon at the beginning of September 2023, began operating.

Cyprus: Store sales increased by approximately 6% during June 2024.

Overall, store sales in Cyprus for the first half of 2024 increased by about 4% compared to the same period last year.

Bulgaria: Network sales increased by approximately +19% in June 2024 compared to the corresponding month last year.

Overall, sales in Bulgaria in the first half of 2024 increased by approximately +11%, compared to the corresponding period last year.

Romania: Sales of the network as well as the online store (www.ejumbo.ro) increased by approximately +17% in June 2024, compared to the corresponding month of last year.

Overall, sales in Romania for the first half of 2024 increased by approximately +14% compared to the corresponding period last year.

Develop a network of stores

As of 30.06.2024, JUMBO Group had 86 stores. 53 of them were in Greece, 5 in Cyprus, 10 in Bulgaria, 18 in Romania, while it had an online store in Greece, Cyprus and Romania.

Regarding the development of the network, until the end of 2024 it is expected to operate:

– New privately owned department store in Nicosia and
– New privately owned department store in Bucharest (Romania).

The opening of the new flagship store in Timisoara (Romania), originally scheduled for November 2024, has been postponed to the first quarter of 2025.

Through partnerships, the group has a presence of 36 JUMBO brand stores, in 7 countries (Albania, Kosovo, Serbia, North Macedonia, Bosnia, Montenegro and Israel). It is noteworthy that a second store in Israel is expected to open in August 2024.

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It is noted that on July 16, 2024, the payment of dividends from the 2023 profits will begin, equivalent to an amount of EUR 1 per share (total).