Portuguese retailer Jeronimo Martins on Tuesday posted a slightly steeper-than-expected 8 percent drop in second-quarter net profit due to tough price competition in its key market Poland.
It also said its EBITDA margin fell to 5.6 percent in the first half of the year from 6.2 percent a year ago, and expected the EBITDA margin evolution for 2014 to be broadly in line with that performance.
"The very competitive environment that requires us to maintain our price investments together with the strong food deflation will impact profitability for the year," it said, but without providing forecasts for profit or sales.
Net profit at the company, which is the largest food retailer in Poland and the second-largest at home, fell to 83 million euros ($111 million) in the second quarter, while earnings before interest, taxes, depreciation and amortization (EBITDA) were flat at 183 million euros.
Analysts had forecast, on average, a net profit of 87 million euros and EBITDA of 188 million.
Total sales rose 9 percent to 3.14 billion euros.
Jeronimo Martins' shares had closed 0.2 percent lower before the results were announced, outperforming the broader market in Lisbon, down 1.3 percent.
