Jumbo 1Q13/14 Results: Good Set of results in line with Estimates

ΜΑΝΟΣ ΧΑΤΖΗΔΑΚΗΣ

Jumbo announced a good set of results in line with estimates. Sales came in at EUR 131.2m increased by 5.8%, EBITDA at EUR 26.9m slightly above our estimate of EUR 26.6m and Net Profit at EUR 18.1m in line with our estimates. Results were benefited by the opening of two (2) new stores in  Greece and the appreciation of the EUR vs. the USD that led gross profit margin to increase by 73bps.

The following table summarizes results vs. our estimates

Key Financials	1Q12/13	1Q13/14	1Q13/14e	% Δ
Turnover (€ m)	124.0	131.2	131.2	0.0%
% Change	2.8%	5.8%	5.8%
Gross Profit	57.5	62.0	61.8	0.2%
% Change	-0.6%	7.8%	7.6%
% margin	46.4%	47.2%	47.1%
EBITDA(€ m)	24.5	26.9	26.6	0.8%
% Change	-4.3%	9.7%	8.8%
% margin	19.7%	20.5%	20.3%
Net Profit (€m)	17.1	18.1	18.0	0.1%
% Change	-4.2%	5.3%	5.2%
% margin	13.8%	13.8%	13.8%
Source: Company Reports, Beta Securities

View: At current levels Jumbo trades at P/E ratio of 14.6x our 2014/15 EPS estimates, well above Group’s ten-year historical average of 10.3x. Following the completion of the MSCI rebalancing tomorrow we would expect some profit taking on the stock.