Pingo Doce Parent Lifts Profit, Signals Stable Grocery Prices

Foreign residents who do their weekly shop at Pingo Doce, invest on Euronext Lisbon or simply track Portugal’s cost-of-living curve may want to bookmark Jerónimo Martins’ latest half-year earnings. The retail group behind some of the country’s most visited supermarkets managed to lift profit, widen margins and keep expansion on track even as European consumers tightened their belts and energy bills stayed unpredictable.

Why your grocery receipt is part of this story

Rising rents in Lisbon and Porto have already forced many newcomers to scrutinise every cabaz of groceries. Jerónimo Martins’ pledge to preserve price competitiveness, reiterated alongside its results, is therefore more than corporate jargon: it shapes the weekly budgets of roughly 4 M households that shop at Pingo Doce. Because the chain holds a double-digit market share, its discount campaigns often dictate how rival stores— and ultimately your neighbourhood corner shop— adjust promotional cycles, private-label ranges and fresh-produce pricing. In short, when the company says it will keep fighting inflation with aggressive cost discipline, there is a reasonable chance your basket of bacalhau, queijo da Serra and imported almond milk will remain within reach.

The headline figures behind the calm

Between January and June JM booked €269 M in net income, a 6.6% jump versus the same stretch of 2024. Group turnover climbed to €17.4 B, up 6.7%, while EBITDA grew 10.3% to €1.15 B, nudging the operating margin to 6.6%. Management described consumer sentiment as “timid” amid geopolitical turbulence, yet stressed that logistical gains and smarter energy contracts helped blunt the effect of input-cost inflation.

Portugal in focus: Pingo Doce and Recheio hold the fort

For expats comparing supermarket shelves, two Portuguese banners matter most. Pingo Doce delivered €2.53 B in sales, a 5.7% rise, fuelled by its remodelled All About Food stores and a solid 3.9% like-for-like increase that excludes fuel. The cash-and-carry arm Recheio added €657 M, inching 1.9% higher as Portugal’s restaurant recovery lost some momentum after last year’s tourism boom. Together, the local operations generated €141 M in EBITDA, good for a 5.5% margin— reassurance for anyone worried that narrow Portuguese household budgets might derail profitability.

Poland, Colombia and a maiden step into Slovakia

JM’s international wings continue to supply most of the scale. Biedronka, Poland’s dominant discounter, pushed revenue past €12.4 B, an increase of 7.1%, and opened its first shops across the Slovak border— an early test of how far the format can travel. Beauty chain Hebe grew sales 9.4% to €297 M, though intense drugstore competition shaved 7% off its EBITDA. In Colombia, hard-discount retailer Ara shone brightest: euro-denominated sales leapt 7% to €1.5 B, and a 50.5% surge in EBITDA validated last year’s decision to acquire 70 Colsubsidio outlets.

Holding margins when power and wages rise

Anyone running a Portuguese household knows utility costs rarely stay still. JM faces the same headache across three time zones. The group said ‘pressure from energy tariffs and a step-up in minimum wages, especially in Poland’, was offset by tight logistics routing, automation in fresh-food depots and a resolute stance on private-label sourcing. Crucially, management kept shelf prices on essentials low enough to retain footfall while nudging up margins through selective premium ranges— think craft beers in Warsaw or pastéis de nata spin-offs in Porto.

How the market reacted and what rivals are whispering

Even after beating consensus on several lines, JM’s share price slipped almost 5% as analysts fretted about an ‘intense competitive backdrop’ for H2. Broker notes from Jefferies and J.P. Morgan praised Ara’s momentum but flagged Biedronka’s lacklustre 0.9% like-for-like growth. Across the ring, Sonae MC— owner of Continente— posted a hefty 23% revenue jump in its own half-year update, signalling it will not cede market share without a fight. The duel matters to residents because a bruising price war could spell deeper discounts but also leaner service levels if both groups chase cost savings more aggressively.

What to watch for the remainder of 2025

JM plans to keep the foot on the accelerator with ‘close to 400 new stores’ system-wide for the full year and continued store revamps under the chef-led food-court concept. Management also hinted at pilot tests in quick-commerce and further investment in solar rooftops, both potentially relevant for sustainability-minded shoppers. Forecasts assume “prudence” in household spending but stable raw-material costs; any spike in oil or further euro weakness against the zloty could cloud that view.

Takeaways for newcomers balancing life in Portugal

A steadier EBITDA margin signals little short-term risk of abrupt grocery price hikes.

Pingo Doce’s focus on fresh and ready-to-eat meals remains perfect for tenants in compact city flats lacking full kitchens.

Competitive pressure from Continente and Lidl should keep the discount flyer wars alive— download at least two supermarket apps to maximise coupons.

If you hold Portuguese equities, JM still offers a dividend yield north of 2%, though volatility can strike whenever Poland sneezes.

In a season dominated by talk of wage stagnation and rent caps, Jerónimo Martins’ results add a rare note of resilience— one that may ultimately be felt at the checkout as much as on the trading screen.