GREECE: Jumbo back with 18c dividend, profits up 37%

Greek retail giant Jumbo reported a 37% rise in annual net profit last week and said it was reinstating its dividend after benefiting from strong sales in Cyprus and Bulgaria.

Jumbo, which operates 52 stores in Greece and 14 in Cyprus, Bulgaria and Romania, said it was proposing a dividend of 18c a share, a turnaround from last year when it was hit by a loss on its Cypriot deposits. Jumbo said it also wanted to save money to repay a euro bond which expired in May.
Jumbo’s net profit for the financial year ending in June rose to 101 mln euros from 74 mln in 2013, well ahead of a target of 80-85 mln which the company had set itself.
The Greek market has been hammered by a six-year austerity-induced recession, which has wiped out about a third of household income, but Jumbo has softened the impact by its continuous expansion outside the home market.
The company had already reported that revenue for the year rose 8% to 542 mln euros and last week attributed the increase to growth of more than 10% in Cyprus and Bulgaria.
For the current year, the company expects a net profit of 90-95 mln euros and a 4-6% rise in sales.
Jumbo, which has a market capitalisation of 1.4 bLn euros, launched five new stores last year and is planning to open another six by next June.
Its shares, traded on the Athens stock exchange are down around 7% this year.