18. Borrowings

Accounting policies

Borrowings are initially recognised at fair value less the transaction costs that were incurred and are subsequently measured at the amortised cost. Any difference between the issued value (net of transaction costs incurred) and the nominal value is recognised in the results during the period of the borrowings, in accordance with the effective interest rate method (note 2.4.2).

Borrowings are classified as current liabilities, unless the Group has the unconditional right to defer settlement of the liability for more than 12 months after the reporting date.

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until the assets are substantially ready for their intended use.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

The Group has negotiated commercial paper programs in the total amount of €310 million, of which €60 million are committed. The utilizations under these programs are remunerated at the Euribor rate for the respective issue period plus variable spreads and can also be issued on auctions. During the year some emissions were carried out, for short periods of time, to meet cash requirements whose use as of 31 December 2024 was of €45 million. The limit of an overdraft agreement has been increased by €25 million to a total of €197 million.

In Poland, at the end of 2023, a new medium and long-term finance was contracted with the European Investment Bank, with a limit of 1.5 billion złoty (around €350 million), to support investments in the renovation of Biedronka stores with improvements in their energy efficiency. As of 31 December 2024, 600 million złoty (around €140 million) had been used, at a fixed rate, for a period of 8 years. Jeronimo Martins Polska S.A. made also a scheduled repayments of a medium and long-term financing in the amount of PLN 99 million, approximately €23 million. Short-term credit facilities were increased by 350 million złoty, about €82 million, to a total of 1,350 million złoty, equivalent to around €316 million.

In Slovakia, have been contracted short term credit facilities in the total amount of €16 million, without utilization as of 31 December 2024.

Jerónimo Martins Colombia issued a new loan with the International Finance Corporation (IFC), part of the World Bank, in the amount of 120 million dollars, which utilization as of 31 December 2024 was 99 million dollars, equivalent to 433 billion Colombian pesos. This loan, ESG Linked, has a maturity of seven years and is intended to support the company’s expansion with the construction of two distribution centers with a ‘Green’ rating through EDGE-Advanced certification. Jeronimo Martins Colombia SAS paid 172 billion Colombian pesos, around €38 million, related to capital repayments of three medium and long-term loans. Two new loans were issued, totalling 380 billion Colombian pesos, for a term of 1 year, through international banks, equivalent to €82 million, and a loan, with a local bank, in the amount of 250 billion Colombian pesos, for a tenor of 2 years, equivalent to approximately €54 million, in addition to the renewal of other short-term financing with local banks.

18.1. Current and non-current loans

18.2. Loan terms and maturities

18.3. Financial net debt

As the Group contracted several foreign exchange rate risk and interest risk hedging operations, as well as short-term investments, the net consolidated financial debt as at 31 December is: