FOOD RETAIL SECTOR UPDATE

Research evidence excerpt

FOOD RETAIL SECTOR UPDATE

Resiliency through crises – Jeronimo

Period Outlook commentary Share price performance Biedronka LFL Biedronka EBITDA Margin

We will continue to closely monitor our operations in a context that is challenging and rapidly

changing. The mission of guaranteeing access to high-quality, essential food products at low prices in

2020 (COVID Shock) -6% 7% 9.3%

a proximity format and in a safe shopping environment will remain the guiding thread of all our

decisions.

The macroeconomic prospects for 2021 depend heavily on the evolution of the pandemic at a global

level and in the geographies where we operate. Biedronka will remain focused on guaranteeing, on

2021 (post-COVID normalization) a day-to-day basis, the preference of consumers. The Company’s strategy is to combine price 45% 8% 9.2%

leadership with an evolution of its offer that fuels sales growth and consolidates its

differentiation in the Fresh categories

Food inflation continued to be high at the beginning of the year, with only early signs of

abating. Disinflation is expected for this year, but it is still difficult to anticipate the level of reduction in

2022-23 (inflation spike/energy crisis) 15% 15%-20% 8.6%

inflation for the second half of the year relative to the high prices recorded in 2022. Electricity, gas,

and fuel prices remain volatile. Interest rates increased rapidly in 2022 and remain high.

Since the end of last year, our food retail businesses have been operating with deflation in their main

categories – commodities, meat, dairy, fruits and vegetables. As we enter 2024, the Group faces a

2024 (disinflation) period in which we see the combination, with unprecedented severity, of rapid decrease in consumer -20% -0.3% 7.7%

food prices and high cost inflation increasing our costs.