Financial strength

Other Losses and Gains amounted to -79 million euros, including compensation, write-offs and an increase in contingency provisions. Also included in this heading is the payment of 24 million euros in bonuses, awarded on an exceptional basis, to operations teams in recognition of their high level of commitment amidst substantial increases in the cost of living for families.

Cash Flow generated in the year amounted to 345 million euros, with the increase in funds generated by operations offsetting the increase in Capex. It is important to note that, although the funds generated by working capital in 2022 benefited from positive cash flow timing, the lower amount generated in 2023 also reflects the government measure to reduce VAT in Portugal, which affected the value of supplier current accounts at the end of the period, and the adjustment of some payment deadlines against a backdrop of high interest rates and difficulty in obtaining financing.

The Consolidated Balance Sheet remained strong, with a cash position (excluding capitalised operating lease liabilities) of 1.2 billion euros at the end of the year, incorporating the Company’s dividend distribution of 346 million euros in 2023, in accordance with the payout policy in force.

The Group continued to pursue its financing strategy, using, whenever possible, loans in local currency as a natural hedge against the exchange rate risk of investments.

In 2023, the acceleration of Ara’s expansion plan led to a significant increase in financing needs and a natural increase in debt, as well as the renegotiation of some loans held, occurring against a difficult environment in which reference rates remained high.

To manage its debt maturity, Jerónimo Martins Colombia, SAS converted a short-term loan into a three-year loan in the amount of 300 billion Colombian pesos (approximately 70 million euros).

In Poland, a new medium and long-term line of funding was agreed with the European Investment Bank, with a cap of 1.5 billion zloty (about 346 million euros), to partially support investments in energy efficiency at Biedronka stores, which will be used in 2024.

The euro-and zloty-denominated business units, which had significant net cash surpluses, were able to earn interest on these amounts throughout the year through bank deposits and other short-term investments.