Jumbo lost about 700 million euros in the second lockdown – “Kneeling” says Vakakis
The second lockdown just before Christmas brought Jumbo stores to their knees, as the e-shop opened and closed as they could not carry out so many orders. That cost them a lot…
Jumbo turnover in 2020 is expected to be below 700 million euros, based on the company’s announcements for the course of the year, according to which sales fell by 18% on an annual basis.
In a note, Optima Bank, given this decline, estimates that the company’s turnover in 2020 will reach 694 million euros, which means that Jumbo “lost” a turnover of 150 million euros due to the prohibition measures. (lockdown) that kept its stores closed in two different periods during the previous year.
Optima Bank reminds that the company’s management chose to abstain from the “click-away” service in December, a month that traditionally corresponds to 25% of the chain’s annual sales due to the Christmas holidays.
Optima emphasizes that assuming an EBITDA margin of 27% (ie the level we see in the first half of 2020), it results in one with an estimated EBITDA of 187 million euros (-28% on an annual basis) for 2020. Below the EBITDA line, we assumed: a) depreciation expenses 35 million Euros, b) net interest expenses 4.4 million Euros and c) real tax rate of 20%. Based on our assumptions, we expect net profits for 2020 of 118 million euros, reduced by 34% per year.
The stock exchange concludes by saying that the visibility for the opening of Jumbo stores in Greece remains limited at the moment, therefore it expects that the share will under-yield in the short term. “However, we must emphasize Jumbo’s strong balance sheet, which protects against any liquidity issues arising from the measures against Covid-19,” concludes Optima, which has set the bar for the share at 16 euros.
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