Jerónimo Martins stock falls on weaker-than-expected dividend

Published 20/03/2025, 10:08
© Reuters.

Investing.com -- Shares of Jerónimo Martins (ELI:JMT) declined by 1.5% following the release of its fourth-quarter financial results.

While the company’s EBITDA surpassed consensus estimates by 5% at the group level, driven by a strong gross margin and better-than-expected performance in Colombia, Group costs, and Hebe, its stock experienced a downturn.

The decline in shares occurred despite the company reporting an 11% and 13% beat on profit before tax (PBT) and net income, respectively. The free cash flow (FCF) also fared better than expected, with an outflow of EUR62 million compared to the forecasted EUR130 million.

However, the dividend per share (DPS) was slightly lower than anticipated at 0.59 per share versus the expected 0.61.

The company’s outlook statement, while generally downbeat, seemed to align with comments from the fourth quarter as well as with current forecasts.

Morgan Stanley (NYSE:MS) commented on the results, stating, "For now, overall we think there is enough here to support the stock tomorrow, given its valuation – Biedronka forecasts will likely hold, and we expect small upward revisions elsewhere."

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