Strong Sales Growth Amidst Market Challenges

This article first appeared on GuruFocus.

• Sales Growth: 8% increase, reaching 497 million.

• EBITDA: Increased by 7% to 165 million.

• Net Profit: Increased by 5% to 170 million.

• Gross Margin: 54%.

• Net Cash Position: Approximately 318 million.

• Capital Expenditure (CapEx): 14 million during the period.

• Dividend Distribution: 0.4667 per share in March and 0.50 per share in July.

• New Store Openings: Second store opened in Timisoara, Romania.

• Online Expansion: Launched online store in Bulgaria.

• Regional Sales Growth: Greece up 9%, Cyprus up 7%, Bulgaria up 2%, Romania up 8%.

• Franchisee Sales Growth: 52% increase, reaching 38 million.

• E-commerce Sales: Accounted for 2.3% of total group sales.

• Annual Sales Growth Forecast: Expected around 8%.

• Capital Expenditure Forecast: Expected to be below 60 million for the year.

• Future Investments: Plan to add two distribution centers with a total investment of 160 million over the next 3 to 5 years.

• Store Expansion Plan: Aim to open an average of 2 new stores per year.

Release Date: September 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Jumbo SA (JUMSY) reported an 8% increase in sales for the first half of 2025, reaching 497 million.

• The company maintained a strong net cash position of approximately 318 million.

• Jumbo SA (JUMSY) expanded its market presence by opening a second store in Timisoara, Romania, and launching an online store in Bulgaria.

• Franchise sales grew significantly by 52%, contributing 38 million to the total sales.

• The company is investing in future growth with plans to add two new distribution centers and modernize its ERP system.

• Gross profit margin declined due to market conditions, including increased VAT in Romania and geopolitical events.

• The company faces challenges in maintaining profitability, with a cautious outlook on achieving last year’s net profit levels.

• Jumbo SA (JUMSY) is experiencing inventory buildup, which could impact cash flow management.

• There is uncertainty in the expansion strategy in Romania, with conflicting reports on the number of new store openings.

• The macroeconomic environment in Romania and Israel is affecting the company’s gross margin and overall financial performance.

Q: Could you explain the drop in gross profit margin for the first half of 2025 and expectations for the second half? A: The gross profit margin was weaker due to market conditions, including events like the VAT increase in Romania and geopolitical issues. We expect a slight improvement in the second half, but this is subject to changing market conditions. Apostolos-Evangelos Vakakis, Chairman of the Board of Directors