Ahold hesitates with Jerónimo Martins sale

Although there were talks initially for Ahold to sell its 49% stake in Jeronimo Martins Retail, chief executive officer of JM Luis Palha said the company may not sell its shares after all.

Jerónimo Martins operates food distribution and manufacturing through a joint-venture with Unilever. The joint-venture company (JMR), which runs Pingo Doce and Feira Nova operations, is owned by Jerónimo Martins Holding company SGPS, (51%), and by Ahold (49%).
The Portuguese retailer released its Q3 2007 results showing that the group net sales increased 20.8% to €1,388m and net profit increased 56.9% to €29.4 million. Jerónimo continued its strong growth in Poland with its Biedronka discount chain delivering a like-for-like sales growth of 19.2% for the first nine months of the year.

The company is, it seems, planning a major expansion strategy for Central Eastern Europe. Following the opening of its 1000th Biedronka discount store in Poland, Jerónimo Martins announced that it will launch the concept in Romania and Ukraine in the future. There is also speculation that it may also be considering entering the Russian market.