Jumbo's financial results for the first half of the year show a significant double-digit improvement compared to last year, which the company attributes—to a large extent—to the proper and professional insurance coverage of the stores and activities affected by the disastrous floods of last autumn, as it notes in the relevant announcement.

But the company points out that major irregularities in the global supply chain continue. The doubling of delivery times and soaring transportation costs will impact the second half of the year.

In particular, he informs, geopolitical tension in the Red Sea with the closure of Suez has led to a more than doubling of freight costs. The use of existing stocks, a better exchange rate against the dollar, as well as the absorption of part of the transportation costs by suppliers helped to keep the gross margin at last year's levels.

As noted, the JUMBO Group has adjusted its inventory and supply policy accordingly, with the sole aim of keeping retail prices in line with consumer incomes.

Based on the data as they currently stand and assuming no change, sales growth for 2024 is estimated at +4%, with organic profitability flirting with 2023 levels.

In particular, the announcement notes that during today's Extraordinary General Meeting of Shareholders, in addition to the agenda item, the management of JUMBO Group will have the opportunity to inform its shareholders-partners about the sales and financial performance in all the countries where it operates.

In detail: 

Sales increased +8.37% compared to the first half of 2023 and amounted to € 460.38 million (from € 424.83 million)

The gross margin remained at the same level as in the previous corresponding period and amounted to 55.27% from 55.30%.

The Group's Earnings Before Interest, Taxes, Depreciation and amortization (EBITDA) amounted to EUR 164.68 million (from € 146.49 million in the previous corresponding period), an increase of +12.42%.

• Excluding the effect of insurance claims, the Group's Earnings Before Interest, Taxes, Depreciation and amortization (EBITDA) amounted to € 154.47 million, up +5.45%. The increase in operating costs is due to the planning for the opening of new stores and the operation of new warehouses in Romania.

The Group's net profit amounted to € 121.69 million (from € 106.45 million), up +14.32%.

• Excluding the impact of insurance claims, the Group's net profit amounted to €111.48 million, up +4.73%.

It should be noted that in the first half of 2024, the company reported an amount of €10.21 million as insurance compensation for its stores in Larissa and Karditsa that remained closed due to the unprecedented flooding event in early September 2023.

Liquidity

As of 30 June 2024, the Group's cash and cash equivalents exceeded its total lease liabilities by an amount of €351.37 million (compared to €370.41 million as of 31 December 2023).

It is recalled that the Annual General Meeting of Shareholders on May 22, 2024, approved the management's proposal for the payment of a dividend from the profits of the 2023 financial year in the amount of €1.00 per share (gross) before withholding of statutory dividend tax, i.e., a total of €136.06 million. The net extraordinary cash distribution, after withholding tax of 5%, where applicable, amounted to € 0.95 per share, and payment to the beneficiaries started on July 16, 2024.

In total, from the beginning of 2024 until today, Jumbo Group has paid to its shareholders and partners a total amount of €1.60 per share (gross), before statutory dividend withholding tax, or a total of €217.7 million.

• At the Extraordinary General Meeting to be held today (September 26, 2024), JUMBO's shareholders will be asked to approve the management's proposal to adopt a share buyback program with a duration of 2 years and up to 10% of the share capital, with a view to cancelling the share buyback program.

Management believes that the Treasury share buyback program rewards existing shareholders for their confidence in the company by giving them the opportunity to invest indirectly in the company by increasing their stake without paying cash. 

A minimum purchase price of €1 per share is proposed as the minimum purchase price and a maximum purchase price of €27.20 each.