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Jumbo: Unfair competition in Greece, a positive sign in Cyprus

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Jumbo: Unfair competition in Greece, a positive sign in Cyprus

During the 10-month period January-October 2021, total sales for the Group increased by approximately + 7% compared to the corresponding period last year.

October 2021 remained on positive ground, recording an increase of + 0.6% compared to October 2020. Greece and Cyprus recorded a positive trend in terms of sales as stores remained open and without the imposition of new measures.

However, the increase in the epidemiological burden led the authorities in Greece in November to impose new measures and again at the beginning of the most critical period for retail as it happened in 2020 and once again creating conditions of unfair competition. From Saturday, November 6, the unvaccinated population will be able to enter the shops and not the Super markets and Supermarkets only with the demonstration of a negative result.

In Bulgaria and Romania, sales fell in October. Vaccination coverage in these countries remains extremely low, and political uncertainty exacerbates the problem. Transitional governments in their attempt to deal with the new Covid wave are making spasmodic moves by imposing extremely harsh measures.

As a result, sales in Bulgaria and Romania are currently in double digits. The downward trend is likely to widen as the situation prevailing in these countries is reminiscent of the corresponding period before the imposition of lockdown in Greece and Cyprus during the last 2 months of 2020.

Detailed sales course by country:

In Greece :

In October 2021, the net sales of the parent company – excluding intra-company transactions – increased by approximately + 2.8%, compared to October 2020.

Overall, the net sales of the parent company – excluding intercompany transactions – for the ten months of the year (January-October 2021) are increased by about + 3% compared to the same period last year.

In Cyprus:

All stores continued to operate with restrictions on the number of customers indoors as well as control of safe pass holdings for incoming customers.

Sales in October 2021 appear increased by about 15%, compared to the corresponding month last year.

Sales in the ten months of 2021 are increased by about + 10%, compared to the same period last year.

In Bulgaria:

The stores continued to operate with extremely harsh new restrictions for the country. In addition to limiting the number of customers indoors, certificate checks on incoming customers have begun.

The sales of the network recorded a decrease of -23% approximately in October 2021, compared to the corresponding month last year. Sales in the ten months of 2021 are increased + about 6%, compared to the same period last year.

The trend for the month of November foretells a dramatic decrease in sales in Bulgaria by more than 50% if the measures imposed are maintained while the scenario of total lockdown is not ruled out.

In Romania:

From the last week of October, it became mandatory to show a relevant certificate for entry in all commercial stores in the country.

The enforcement of the measures led to the sales of the network to decrease by -1.6% in October 2021, despite the successful opening of the new branch of the Jumbo Group in the city of Craiova.

Sales in the ten months of 2021 are increased by + 17%, compared to the same period last year.

The trend for November predicts a dramatic drop in sales in Romania by more than 30% if the additional measures imposed are maintained and could lead to a total lockdown.

In conclusion:

The Jumbo Group continues to make every effort to balance in an environment where retarders are intensifying and no visible improvement is expected in the first months of 2022.

The goal of Jumbo's management is through profitability and its strong financial position:

1. safeguard the Jumbo model towards the consumer in terms of price-performance ratio; and

2. to remain faithful to its commitment to distribute money every year.

As already announced, on November 26, a gross amount of € 0.30 per share will be paid in the form of extraordinary cash distribution, while a gross amount of € 0.47 per share has already been distributed in July 2021.

Consequently, the total gross amount that will have been paid to the shareholders against the profits of the year 2021, amounts to a gross amount of 0.77 euros per share, increased by 25% compared to 2020, which amounted to 0.615 euros per share .

Source: Capital.gr

Source: www.philenews.com

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