Consumer Discretionary

Report by ResearchGreece

ResearchGreece flags growing competitive risks as Dutch retailer, Action, reveals plans to open its first store in Romania later this year. This marks the first time a similar, yet more aggressive, retail chain is entering into one of Jumbo’s markets (Romania contributes 22% to group sales). Action offers 6,000 products across 14 categories that compete with Jumbo's, with about two-thirds of these items priced under €2.00. Furthermore, investors should not rule out the possibility that Action may choose to enter Greece, where Jumbo operates 53 out of its 89 stores, given Action has identified existing and potential markets with the capacity to add an additional 4,700 stores.

Consumer Discretionary

Report by ResearchGreece

ResearchGreece reiterates their Own It 'OI' recommendation forecasting significant upside following the H1 results. As always the messages were contradictory on guidance, revenue and net income, but ultimately Jumbo has a successful business model, strong balance sheet, cash flow generation and dividend policy. All currently priced at 6.9x EPS (x-cash), 4.6x EBITDA and 8% FCFE yield 2023E. They were able to announce a special dvidend of E0.38/share (2.7% yield).