Google
 
Web www.testcompany.com

Jerónimo Martins : 3Q07 results - FIRST REACTION - ALERT

From: <JPMorgan.Alerts(*)jpmorgan.com>
Date: Thu, 25 Oct 2007 09:21:36 -0400 (EDT)
To: Philippe(*)testcompany.com 

 

	 
		MorganMarkets Research Email Alerts
	 
	
		

			 
				
 
				     
			    	 
					 
					 
					 
				

				
 
					
						Click here if your email program has trouble displaying this email.
					
					   
				

				
 
					 
				

				

					
						
							JPMorgan
						
					
					
						
							 
						
					
					 
				

				

					
						MorganMarkets Research Email Alerts
					
				     
				

				
 
					 
				

				

					 Dear Philippe Van Loock, 
					 
				

				
 
					
						JPMorgan Research has published the following on MorganMarkets. Please click on the indicated URL to access your document or open the attachment at the bottom of this email.
					
					 
				

				
 
					 
				


				
  
 
     
  

  
 
    Headline: 
      
       
    Jerónimo Martins : 3Q07 results - FIRST REACTION - ALERT 
		
    
     
  

  
 
    Abstract: 
      
       
         	 
    	

                  	

			
  • Jerónimo Martins has just published 3Q07 results which were in line with our high expectations. There is a conference call at 9.30am GMT (+44 207 750 9908).
    • 
			
    
                  	
    
			
  • JMR. Pingo Doce reported LFL growth of 8.9% in 3Q (JPMe 6%) up from 7.6% the previous period, the company said the unit expanded market share 1.3ppts in 9m07 vs 9m06. We consider this a very positive performance given the tougher base of comparison (+13.5% in 3Q06). At Feira Nova, the mini-hypers reported a 0.9% LFL fall and the large hypers -6.7% (JPMe +0.5% and -4.0% respectively). The poor large-hyper trend reflects ‘aggressive promotional activity’ most likely from Sonae’s Continente hypermarket’s new loyalty card. We think that this weak trend makes sale of this business unit more likely. At the mini hypers, big increases in private label participation are weighing on sales growth in the short term.
    • 
			
    
                  	
    
			
  • Poland. Impressive LFL growth of 19.3% was reported in 3Q (JPMe 18%) after 19.4% in 2Q. All retailers are benefiting from the strong macroeconomic backdrop, whilst consolidation in the sector is leading to a less aggressive competitive environment. Total sales were up 33% in local currency and 39% in euro terms.
    • 
			
    
                  	
    
			
  • Earnings. The group EBITDA margin fell from 7.4% in 3Q06 to 7.2% in 3Q07 (JPMe 7.2%) due to business mix effect. We are not given margins by division in the 3Q, but the company indicates that it has seen a much less severe drop in its 3Q JMR margin than in the 1H, where it fell 160bp. They also say that gross margins moved up. The Polish EBITDA margin went up year on year they say. In the manufacturing division there was margin weakness due to rising raw material costs.
    • 
			
    
                  	
    
			
  • Net debt. We find it interesting that net debt fell c€20m between the end of the 1H and the end of 3Q despite the company’s heavy investment programme.
    • 
			
    
                  	
    
			
  • Overall these are an excellent set of numbers but in large part anticipated by the market we believe. Our OW stance on the company is unchanged.
    • 
			
    
                  
       
    	    		   
         
  
    
  
     
     
  
    
  
     
    Link: 
      
       
     
      https://mm.jpmorgan.com/jsp/email_frame.jsp?fullDocId=GPS-157892-0
    
     
  
    
  
     
    Author(s): 
       
     
    	
    
                  	
    
			Alastair Johnston
			
    
                  	
    
			Jaime Vazquez
			
    
                  	
    
			Andrew Gwynn, ACA
			
    
                  
       
       		
     
  
    

     
    Date: 
       
    2007/10/25 08:44:39 BST
    
     
  
    

  
     
    
    		
       
  
    


				
     
					 
						Visit MorganMarkets at http://www.morganmarkets.com 
					
					 
				
    
				
     
					 
						 If you wish to change your JPMorgan Email Alert preferences or unsubscribe, visit:
						Edit my Email Alerts or: https://mm.jpmorgan.com/servlet/PortalFW?pageName=my_jpm&toAlertsConfig=true&menuId=91613
					
					 
				
    
				
     
					 
				
    
				
     
				    
				     
				
    
				
     
					 
				
    
				
     
				    Copyright 1999, 2007 J.P. Morgan Chase & Co. All Rights Reserved.
				
    
				
     
					 
				
    
				
     
				    
				    	This email research alert is sent only to authorized JPMorgan clients and is for informational purposes only. This email alert may contain hyperlinks and/or attachments to JPMorgan research to which you have requested. Additional information available upon request.
				    
				
    
				
     
					 
				
    
				
     
				    
						This email alert may be forwarded or distributed only to authorized JPMorgan clients and may not otherwise be reproduced in any manner whatsoever. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Access to the research described herein is made available only to authorized JPMorgan clients with a valid ID and password to the MorganMarkets website. The research referred to in this email alert is made available globally by J.P. Morgan Securities Inc., J.P. Morgan Futures Inc., J.P. Morgan Securities Ltd., J.P. Morgan plc, J.P. Morgan Europe Limited or their affiliates as designated the MorganMarkets website. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any comments or statements made herein do not necessarily reflect those of J.P. Morgan Chase & Co., its subsidiaries and affiliates.
					
				
    
				
     
					 
				
    
				
     
				    JPMorgan's Full Disclaimer: 
						https://mm.jpmorgan.com/disclosures/company/index.html 
				    
				     
				
    
				
     
				     
				
    
			    
		
    
	
  


    

    


    

    


    
picture

picture

picture

picture




    
Received on Thu Oct 25 2007 - 09:21:41 EDT

    


    





    


    

    






    


    

    


    






    		




    

    

    

Google






    

    
 


 Web
www.testcompany.com
  








    

    


    		

    










This archive was generated by 
hypermail 2.2.0.

    
Internet Marketing