Significant double-digit improvement show its financial results Jumbo Group in the first half of 2024, compared to last year, which is largely due to the correct and professional insurance coverage of the shops and activities affected by the disastrous floods of last Autumn, according to what is mentioned in a related announcement.

“Major dysrhythmias in the global supply chain continue. Doubling the time of delivery of goods and skyrocketing transportation costs will affect the second half of the year. The geopolitical tension in the Red Sea with the closure of Suez led to a more than doubling of the cost of transporting products. The use of existing inventory, the better exchange rate against the dollar, as well as taking part of the transportation costs from suppliers helped to keep the gross margin at last year’s levels. The Jumbo Group has adjusted its storage and supply policy accordingly, with the sole aim of maintaining retail prices at levels in line with consumer incomes. Based on the data as it applies today and if there is no change, it is estimated that the sales growth rate for 2024 will be +4%, with organic profitability flirting with the levels of 2023″ it is pointed out.

In more detail, in the first half the sales increased by 8.37% compared to the first half of 2023 and amounted to 460.38 million euros (from 424.83 million euros). The gross profit margin remained at the same levels as the previous corresponding period and stood at 55.27% from 55.30%. The Group’s earnings before taxes, interest and depreciation (EBITDA) amounted to 164.68 million euros (from 146.49 million euros in the previous corresponding period), showing an increase of 12.42%. Without the effect of insurance claims, the Group’s earnings before taxes, interest and depreciation (EBITDA) amounted to 154.47 million euros, increased by 5.45%. The increase in operating costs is due to the planning for the operation of new stores as well as the operation of new warehouses in Romania. The Group’s net profits amounted to 121.69 million euros (from 106.45 million euros, increased by 14.32%).

Without the effect of insurance claims, the Group’s net profits amounted to 111.48 million euros, increased by 4.73%. It is noted that during the first half of 2024, Jumbo showed the amount of 10.21 million euros as insurance compensation for its stores in Larissa and Karditsa that remained closed due to the unprecedented flooding phenomenon at the beginning of September 2023.

On June 30, 2024, the Group’s cash and cash equivalents were higher than the total amount of its lease obligations, by the amount of EUR 351.37 million (compared to EUR 370.41 million on December 31, 2023).

It is recalled that the regular general meeting of shareholders on 22.05.2024 approved the management’s proposal for the payment of a dividend from the profits of the corporate year 2023 in the amount of 1.00 euros per share (gross), before withholding statutory dividend tax, i.e. a total of 136.06 million euros. The net extraordinary cash distribution, after 5% withholding tax, where applicable, amounted to EUR 0.95 per share and payment to beneficiaries commenced on 16 July 2024.

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

During the extraordinary general meeting to be held today (September 26, 2024), Jumbo’s shareholders are invited 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 the aim of canceling them.

Management believes that the share repurchase program rewards existing shareholders for their trust in the company by allowing them to indirectly invest in the company, increasing their percentage without paying cash.

As a minimum purchase price, the amount of 1 euro/share is proposed and as a maximum purchase price, the amount of 27.20 euros each.