Financial strength

Other Losses and Gains amounted to a loss of 119 million euros, including the initial endowment of 40 million euros for the Jerónimo Martins Foundation, and the write-offs resulting from refurbishments and of restructuring costs. Also included in this heading is the payment of 27 million euros in bonuses, awarded on an exceptional basis, to operations teams in recognition of their high level of commitment in an incredibly demanding year and who worked tirelessly to increase sales volume.

Cash Flow for the year, before dividend payments, was a negative 62 million euros, significantly affected by the effect on growth of the rapid shift from high inflation to deflation. Interest paid also increased, consistent with the increase in net debt, especially in Colombia, where interest rates remain high.

The Consolidated Balance Sheet remained strong. The Group’s cash position (excluding capitalised operating lease liabilities) at the end of the year was 726 million euros, incorporating the Company’s dividend distribution of 411.6 million euros, 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 order to ensure that its financial strategy is fully aligned with its sustainability agenda, the Group drew up and publicly disclosed its Sustainable Finance Framework (SFF), which will serve as a framework for future financing needs.

In Poland, a new medium-and long-term credit facility was arranged at the end of 2023 with the European Investment Bank, capped at 1,500 million złoty (around 346 million euros), to support investments in the refurbishment of Biedronka stores to improve energy efficiency. As at 31 December 2024, 600 million złoty (around 140 million euros) had been used, with a fixed interest rate over eight years. Since the financing was obtained and by the end of 2024, more than 500 stores have been refurbished, bringing energy efficiency gains through building insulation and the installation of closed-loop cooling systems running on natural gas.

Jerónimo Martins Colombia took out a new loan with the International Finance Corporation (IFC), a member of the World Bank, in the amount of 120 million dollars. As at 31 December 2024, 99 million dollars, approximately 433 billion Colombian pesos, had been used. This ESG-linked loan has a maturity of seven years and was taken out to support the Company’s expansion with the construction of two distribution centres in the regions of Bogotá and Cali with EDGE-Advanced Green certification.

Confirming facilities and guarantees, classified as sustainable under the SFF, which consider more favourable cost conditions as an incentive to develop better practices and meet ESG objectives, were also converted.

The euro and złoty 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 monetary investments.