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 or non-current liabilities depending on Group’s right to defer payment beyond 12 months after the balance sheet date. If the Group has the right, at the balance sheet date, to refinance or renew a loan negotiated under a credit line for at least twelve months after the reporting period, it classifies the borrowing as non-current, even if it is due in a shorter term. On the contrary, if the Group does not have the right to refinance or renew the loan, it is classified as a current liability.

The classification of a borrowings as current or non-current is determined based on the existence of any eventual covenants that the Group must comply with, even when their verification by the creditor only occurs after the balance sheet 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.

At the end of the year, the Group had commercial paper programs in place in the total amount of €425 million, of which €200 million are committed. These include two new contracts formalized in the last quarter of 2025, both structured as Sustainability‑Linked Commercial Paper, each with a maximum amount of €50 million. 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 period some issuances were carried out, for short periods of time, to meet cash requirements whose use as of 31 December 2025 was of €50 million.

During the 2025 financial year, JMR, SGPS, S.A. issued a sustainability‑linked bond with a 3‑year maturity, at a fixed rate, in the amount of €50 million.

Jeronimo Martins Polska, S.A. made payments of 99.3 million złoty, approximately €23 million, relating to principal amortizations of a medium‑ and long‑term financing. A loan of 300 million złoty, around €71 million, was issued with a 7‑year maturity and variable interest rate to finance the deposit and recycling system for packaging in Biedronka stores. A new bank overdraft facility was also contracted, with a total amount of 100 million złoty, approximately €24 million.

Jeronimo Martins Colombia SAS (JMC) renegotiated its local and external financing limits, increasing its financing capacity by 1.072 billion Colombian pesos, approximately €243 million. In 2024, a loan was contracted with the International Finance Corporation (IFC), part of the World Bank Group, in the total amount of 120 million dollars. In the first quarter of 2025, the last tranche was issued in the amount of 21 million dollars (85 billion Colombian pesos). This loan, ESG Linked, has a maturity of seven years and is intended to support the JMC’s expansion with the construction of two distribution centers with a ‘Green’ rating through EDGE-Advanced certification. During the year, JMC also made payments of 150 billion Colombian pesos, approximately €34 million, related to principal amortization of three medium‑ and long‑term loans previously contracted with the same institution.

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: