Portuguese retailer Jerónimo Martins reported a higher-than-expected 22.4% rise in third-quarter net profit (net profit reached €56.55 million), boosted by strong sales at its Biedronka discount chain in Poland.

"Despite a strong competition environment in Portugal as well as in Poland and the overall macroeconomic setting, the group maintains its positive vision about the evolution of sales and results in the fourth quarter," stated a company representative.

While most of the sales growth was in Poland (Biedronka is Poland's biggest chain of discount stores), Jerónimo Martins' main local chain, Pingo Doce, had a 12.5% growth in like-for-like sales. The company expected further improvements in like-for-like sales, while it is also expects to add 15 new supermarkets before the end of the year.

Operating costs increased 33.6% mainly due to JM's purchase of the Plus network of stores in Portugal and Poland at the end of last year from Germany's Tengelmann for €320 million. JM has been integrating the new stores into its chains which generate additional costs.