Focus on profitable growth

The Group’s sales grew 9.3% (up 4.9% at a fixed exchange rate) to 33.5 billion euros, with an LFL of 0.6%.

Contribution to Consolidated Sales Growth

(€ Million)

In Poland, food inflation, which had fallen until March, rose in April with the reintroduction of VAT on basic food products, and has been on an upward trajectory ever since.

The cautious behaviour of consumers, who remained very much price-sensitive and promotion-orientated all year, resulted in negative developments in food retail sales at constant prices and competition intensified sharply.

Biedronka worked tirelessly to offer Polish families the best savings opportunities and maintained a strong commercial dynamic, securing its price leadership and once again earning the preference of consumers.

Our largest banner, operating with basket deflation throughout the year, saw sales volume growth, despite a lacklustre food retail market, against the strong performance recorded in 2023, increasing its market share.

Hebe leveraged its competitive commercial strategy and quality assortment with many exclusive products, posting good sales performance, driven also by the growing contribution from the online channel.

In Portugal, food inflation was low throughout the year. In the food retail market, consumers remained cautious, seeking out savings opportunities and promotions. The HoReCa channel stagnated somewhat compared to the strong performance of previous years, impacted mainly by weak out-of-home consumption.

Pingo Doce maintained a strong commercial intensity and enhanced its popular promotional campaigns. The banner continued to expand its new store concept, reinforcing its unique offer in ready meal solutions and fresh produce, while introducing innovative services, delivering a strong sales performance despite slightly negative basket inflation.

Recheio leveraged its customer-tailored value propositions and maintained strong momentum, despite fairy weak consumption in the HoReCa channel, gaining new customers in all its segments.

In Colombia, food inflation was also lower than in previous years. Food prices remained high, however, and continued to put pressure on household income, leading consumers to trade down significantly.

Ara implemented its defined commercial strategy, offering good savings opportunities to Colombian families and strengthening its market position.

Group EBITDA amounted to 2.2 billion euros, up 2.9% on 2023 (down 1.7% at constant exchange rates). The respective margin stood at 6.7% compared to 7.1% in 2023.

Contribution to Consolidated EBITDA Growth

(€ Million)

At Biedronka, EBITDA decreased 1.3% (down 6.3% in local currency). The operational deleveraging caused by basket deflation, in a year heavily impacted by the decision to significantly increase the salaries of the operational teams and by price investment, put pressure, as expected, on the EBITDA margin, which stood at 7.7% (8.5% in 2023).

At Hebe, good sales performance, careful management of the margin mix and tight cost control led EBITDA increase 39.4% (up 32.4% in local currency), with the respective margin increasing to 10.2% (9.1% in 2023).

At Pingo Doce, the sales assertiveness, to which the Meal Solutions area also contributed, and the focus on operational productivity and efficiency led the EBITDA margin remain stable compared to the previous year, despite the investment in pricing and sharp cost inflation.

Recheio invested in strengthening its commercial dynamics and competitiveness as a means to grow its customer base and volumes, in a context where the HoReCa channel came under pressure, recording a reduction in its EBITDA margin.

At Ara, the rise in the EBITDA margin reflects the change in commercial dynamics and the ongoing efforts at costs level, helping to improve operational profitability in a challenging environment.

The investment programme remained the main priority in the allocation of funds and was rigorously executed by each of the banners, focusing not only on strengthening their market positions through expansion, but also on improving the overall shopping experience by investing heavily in refurbishing stores in their respective chains.

stores

TOTAL
OPENINGS*

388

TOTAL REMODELLINGS**

368

BIEDRONKA

186

OPENINGS
(161 net)

280

REMODELLINGS

Pingo doce

10

OPENINGS
(7 net)

64

REMODELLINGS

recheio

-

OPENINGS

1

REMODELLINGS

Ara

150

OPENINGS
(148 net)

15

REMODELLINGS

Hebe

39

OPENINGS
(36 net)

6

REMODELLING

* Includes the opening of three Jeronymo stores

** Includes the remodelling of one Jeronymo store and one Hussel store

In 2024, the investment programme totalled one billion euros. Decreased investment compared to 2023 is mainly due, as planned, to lower executed investment in store refurbishments by Biedronka and in store openings by Ara.

Expansion accounted for 40% of Capex in the year, with the opening of a total of 388 new stores (352 net additions).

Investment by Business Area

Biedronka continued to boost its market presence, benefiting from its flexibility to adapt its format to market opportunities, opening 186 new stores in the year (161 net additions) and refurbishing 280 locations.

The ultra-fast delivery operation (q-commerce), operated under the Biek brand, opened five new micro-fulfilment centres, ending the year with a total of 23.

In Slovakia, the initial investments led, already in March 2025, to the opening of the first Biedronka stores and a distribution centre, with the expectation of ending the month with five stores in operation.

Hebe opened 36 new stores in the Polish market (33 net additions), adding to its network the opening of two stores in Slovakia and another in Czechia at the end of the year.

Pingo Doce continued to roll out its All About Food concept, reiterating its focus on Perishables and Meal Solutions, refurbishing 64 stores. The banner opened 10 new locations in the year and closed three.

Recheio invested in refurbishing one of its stores, guaranteeing the quality of its value proposition, focusing particularly on the HoReCa channel.

Ara successfully implemented its expansion programme, opening 150 new stores and ending the year with 1,438 locations.

Significant investment was also made in logistics to support the banner’s expansion, with the opening of a new distribution centre in early 2024, and investments in facilities expected to open in 2025.

With regard to the agrifood business in Portugal, besides acquiring some farming properties, investments were made to increase the Group’s interest in Supreme Fruits, of which the Group now holds a stake of 80% of its capital, and the capital increase and reinforced participation in Andfjord Salmon, a Norwegian salmon farming company, in which Jerónimo Martins holds a stake of 28%. Additionally, the Group also holds 100% of the capital of the company Outro Chão, after acquiring its partner’s share, who needed to focus on its core business: Vale da Rosa.

In keeping with the Group’s responsible stance towards all areas of intervention, compliance with tax obligations deserves a special mention since, in the different countries where it does business, the Group is subject to different types of taxes, contributions and levies arising from the activity of its subsidiaries.

In 2024, the Group paid a total of 1,058 million euros in profits tax, corporate contributions to social protection systems, sales and property taxes, and non-deductible VAT in certain countries. In addition to these taxes and contributions, the Group is also subject to a significant number of other taxes and levies arising from the type of activities it carries out in each country, which are often incorporated into the cost of the products or services obtained.

The effective tax rate¹ for 2024 was 24% (25.2% in 2023).

Return on invested capital, calculated on a Pre-tax ROIC basis, was 20% (26.8% in 2023).

PRE-TAX ROIC

(€ Million)

This evolution was largely the result of the correction of the extraordinarily high food inflation of 2022 and 2023, influenced by the disruptions caused by the invasion of Ukraine, which had a significant and positive impact on capital turnover and Pre-Tax ROIC in those years.

In 2024, to this correction added the substantial pressure of cost inflation on the EBIT margin, and the increase in capital expenditure, particularly working capital.

¹ Effective tax rate determined on the basis of the estimated tax for the year, without considering corrections to estimates from previous years and deferred taxes.