Financial strength

Net Financial Costs amounted to 322 million euros (267 million euros in 2024). The year-on-year increase essentially reflects the implementation of the expansion programme and the resulting impact on interest on capitalised operating leases.

Other Gains and Losses amounted to -131 million euros, including the initial endowment of 40 million euros for the Jerónimo Martins Foundation, and the write-offs resulting from refurbishments, restructuring costs, and litigation-related provisions. Also included is the payment of 28 million euros in awards to recognise the extraordinary efforts of the operational teams who, being the face of our banners, delivered growth in sales volumes in very challenging markets, while improving the productivity of operations.

The average effective tax rate¹ for 2025 was 25.4% (24.3% in 2024). Excluding the positive effect of recognising, in 2024, deferred taxes for the company that operates Hebe stores, as it now has taxable income, the effective tax rate remained unchanged year-on-year.

Cash Flow in the year, before dividend payments, amounted to 537 million euros. This strong cash generation reflects the solid operating performance of the banners and a normalisation of the funds generated by working capital, after the adjustments recorded in 2024.

The Consolidated Balance Sheet remained strong. The Group’s cash position (excluding capitalised operating lease liabilities) at the end of the year was 866 million euros, taking into account the Company’s dividend distribution which, in 2025, totalled 371 million euros.

In line with its financing strategy, whenever possible the Group uses 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 in 2024, which served as a framework for a large portion of borrowings in 2025.

In Portugal, we secured financing through two new commercial paper programmes, both in the form of Sustainability-Linked Commercial Paper, via private placement and direct offering, each for a maximum amount of 50 million euros. A Sustainability-Linked bond loan was also issued, with a maturity of three years and at a fixed rate, in an amount of 50 million euros. These three new loans are indexed to sustainability objectives tied to monitoring and disclosing the social impacts generated by the support initiatives of the Jerónimo Martins Group companies, and the annual waste recovery rate.

In Poland, we took out a seven-year loan in the amount of 300 million złoty (approximately 71 million euros) with a floating rate, to finance the implementation of a deposit return and recycling system in Biedronka stores.

In Colombia, and in the first quarter of 2025, we used the last available tranche of 120 million dollars (equivalent to 85 billion Colombian pesos) of the loan obtained in 2024 in the amount of 21 million dollars from the International Finance Corporation (IFC), part of the World Bank. This ESG-linked loan has a maturity of seven years and was taken out to support Ara’s expansion with the construction of two distribution centres in the regions of Bogotá and Cali with EDGE-Advanced Green certification. A new commercial paper with a maturity of one year was also issued, in the form of Sustainability-Linked Commercial Paper, for 170 billion Colombian pesos.

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 treasury investments.

¹ Effective tax rate determined on the basis of the estimated tax for the year, taking into account the corrections to estimates from previous years and deferred taxes. Gains/Losses in Joint Ventures and Associates are excluded from Profit Before Tax as, under the equity method, these results are already presented net of taxes.