Jeronimo Martins Positive read-through from DNP 1Q26 earnings - buy the pullback

Research evidence excerpt

Jeronimo Martins Positive read-through from DNP 1Q26 earnings - buy the pullback

J P M O R G A N Europe Equity Research

15 May 2026

Jeronimo Martins Overweight

JMT.LS, JMT PL

Positive read-through from DNP 1Q26 earnings - buy Price (14 May 26):€18.34

the pullback Price Target (Dec-27):€24.80

Our Take: Dino's 1Q26 results came in well above downgraded market European Food Retail

ACexpectations on both LFL (+4.4%, +46bps vs JPMe) and margins (+57bps vs cons; Borja Olcese

see full note here), which we believe points to a more constructive than feared near- (34-91) 516-1511

term outlook for discounters in Poland, particularly when food inflation is borja.olcese@jpmorgan.com

expected to accelerate going into 2H26. This reads well for JMT wherein J.P. Morgan Securities plc

Biedronka recently delivered c2% LFL with volumes +5%, with margins holding Palak Garg

well despite the business still running in heavy deflation, yet seeing reasonable (91-22) 6157-5102

palak.x2.garg@jpmorgan.com

earnings flow-through with operating leverage building (see full note here). In the J.P. Morgan India Private Limited

context of recent underperformance and with DNP print confirming much

Elena Jouronova, CFA

healthier trends at Biedronka, we would buy the JMT pullback. Recall the (971) 4561-2010

greenshoots within the investment case: 1) volumes are accelerating, 2) margins elena.jouronova@jpmorgan.com

are holding despite basket deflation, 3) operating leverage is building, with better J.P. Morgan Securities plc

than expected earnings flow through and 4) Biedronka is expected to ease pricing Anastasia Tikhonova

in 2H. Reiterate OW, AFL. (44-20) 3493-8007

anastasia.tikhonova@jpmorgan.com

Figure 1: Poland players - LFLs J.P. Morgan Securities plc

40%

35% Specialist Sales contact details:

30%

25%