ese retailer Jeronimo Martins posted an 8 percent rise in quarterly net profit driven by a 14 percent increase in sales in its key Polish market, which still fell short of analysts' expectations.Net profit in the second quarter rose to 90 million euros ($119 million), roughly in line with forecasts and with sales in recession-hit Portugal edging up, the company said on Wednesday.
It kept its earlier estimate for double-digit percentage growth in sales and EBITDA (earnings before interest, tax, depreciation and amortisation) for all of 2013, despite a difficult economic and competitive environment.
Jeronimo Martins, the second-largest retailer in Portugal and Poland's biggest food retail firm via its Biedronka discount chain, said total sales rose 10 percent in the quarter from a year earlier to 2.87 billion euros, compared with 2.91 billion euros expected by analysts.
However, analysts said the pace of sales at the Polish unit showed some signs of weakness, driving the stock down 6.5 percent.
Barclays analysts said it was Jeronimo Martins' "worst ever performance in Poland", with quarter-on-quarter sales up 2 percent, significantly below their 5.7 percent projection.
Sales in Portugal at its main Pingo Doce supermarket chain rose 2 percent to 789 million euros despite the country's deepest recession since the 1970s, thanks to a growing market share and a discount campaign.
"Pingo Doce had a very strong performance despite the economic conditions which remain weak," the company said.
Biedronka sales rose to 1.85 billion euros, making up more than 64 percent of the retailer's total revenues.
"Jeronimo Martins have gotten us used to being positively surprised every time and that did not happen this time," said Albino Oliveira, analyst at Fincor brokerage.
Jeronimo Martins is also expanding to Colombia, where it opened 14 stores in the first half of the year and plans to finish 2014 with 30 to 40 stores.
Total EBITDA rose 9 percent in the quarter to 183 million euros, against analysts' average forecast of 186 million.
