Jumbo lines up new Cyprus store as profit reaches €120.6m

Greek retail group Jumbo recorded net profit of €120.6 million in the first half of 2026, up 2.92 per cent year-on-year, while sales rose by 4.42 per cent to €519.26 million, as the company kept its full-year outlook unchanged and announced an extraordinary €1 per share cash distribution. In Cyprus, which remains one of the group’s four directly operated markets, Jumbo said the disruption initially caused by the island’s proximity to conflicts in the Middle East had gradually eased, with market conditions normalising over the summer months. The group currently operates six stores in Cyprus, alongside 53 in Greece, 10 in Bulgaria and 20 in Romania, taking its directly operated network to 89 stores. Jumbo is also planning a new store in Cyprus in 2027, as part of a targeted expansion programme across its core markets. The first half of the year unfolded against a backdrop of heightened geopolitical uncertainty, with ongoing conflicts continuing to put pressure on energy prices, international freight and supply chains, while also weighing on consumer sentiment. For the six months to June, group sales increased to €519.26m, from €497.28m a year earlier, while gross profit rose by 3.77 per cent to €277.94m. EBITDA increased by 2.81 per cent to €170m, from €165.36m, while net profit reached €120.6m, compared with €117.18m in the first half of 2025. Despite the more difficult external environment, management maintained its forecast for sales growth of around 5 per cent in 2026, with net profit expected at between €310m and €320m. The retailer noted that the second half of the year traditionally accounts for a greater share of annual sales and profit. Greece, which represents approximately 60 per cent of Jumbo’s business, continued to record healthy growth during the first half. Bulgaria also remained particularly strong, supported by progress towards euro adoption, high liquidity, a sound banking system, low public debt and strong wage growth. Romania, however, continued to be the group’s most challenging market, as high inflation, pressure on the leu, fiscal adjustment and the increase in VAT from 19 per cent to 21 per cent in August 2025 weighed on real disposable income and consumer demand. Jumbo said the Romanian comparison base would become more representative from August, when sales begin to be measured against a period in which the higher VAT rate was already in place. However, it stressed that this was primarily a technical effect and did not in itself point to a meaningful improvement in consumption, with inflationary, currency and fiscal pressures continuing. Margins also came under some pressure during the first half. The group’s gross margin fell by 33 basis points, mainly because of the depreciation of the Romanian currency and Jumbo’s decision to absorb part of the VAT increase rather than pass it fully on to retail prices. A more favourable euro-dollar exchange rate, relatively contained freight costs and a lower contribution from sales to franchise partners in the overall sales mix helped offset some of that pressure. Recent developments in international shipping, however, have once again pushed freight rates higher, increasing uncertainty for the second half of the year. Jumbo continues to operate without bank debt, while as at June 30 its cash and cash equivalents exceeded total lease liabilities by €485.65m. The group said its strong liquidity allows it to continue returning capital to shareholders while carrying out its investment and growth programme without disruption. The board on September 23 approved an extraordinary cash distribution of €1 per share, amounting to approximately €134.37m. The ex-distribution date has been set for November 16, with the record date on November 17 and payment beginning on November 20. Jumbo had already distributed €161.2m, €1.20 per share, to shareholders earlier in 2026. Including the latest payment, total cash distributions for the year amount to €2.20 per share, or approximately €295.57m. At the same time, the retailer is continuing to expand its store network. A new hypermarket in Baia Mare, Romania, is expected to open in October, while further stores are planned in Romania and Cyprus during 2027. In Greece, 2027 is expected to be a transitional year for openings, with the group’s next four stores currently in preparation and expected to begin opening from 2028. In Bulgaria, plans continue to include one additional hypermarket within the next two years. Romania also remains central to Jumbo’s longer-term expansion strategy, with the group retaining its target of doubling the number of stores there over a decade. Alongside its large-format stores, Jumbo is developing smaller pop-up shops carrying a more targeted product range in busy tourist and high-footfall locations. Suitable locations have already been identified, with the first stores expected to open in 2027 or 2028. The retailer is also expanding its digital presence. Jumbo currently operates online stores in Greece, Cyprus, Bulgaria and Romania, while an online store in Hungary is planned for late 2026, supported by the group’s existing e-commerce infrastructure in Romania. Investment in logistics is progressing in parallel. The group is moving ahead with the acquisition of the approximately 60,000-square-metre Giga distribution centre in Romania, which is expected to increase the capacity and efficiency of deliveries to the Romanian market. A new distribution centre in Thessaloniki is also under development and is expected to be completed in 2027, serving northern Greece and Bulgaria. Meanwhile, the expansion of Jumbo’s partnership with BALFIN Group, together with a new supply model for the additional markets covered by the agreement, is expected to free up capacity across the group’s existing warehouses and distribution centres. As a result, Jumbo is reassessing plans for the development of a new distribution centre in Oinofyta. The group is also in discussions with Fox Group over applying the same supply model to the Israeli and Canadian markets. Beyond its directly operated network, Jumbo currently has a presence through partnerships in 48 JUMBO-branded stores across seven countries, Albania, Kosovo, Serbia, North Macedonia, Bosnia and Herzegovina, Montenegro and Israel. During the first half of 2026, its partnership with BALFIN expanded into six new markets: Ukraine, Georgia, Armenia, Azerbaijan, Kazakhstan and Uzbekistan. The agreement builds on the existing partnership in Albania, Kosovo, Bosnia and Herzegovina, Montenegro and Moldova, where a store is expected to open during 2026. For the six new markets, BALFIN will establish a central logistics hub in China and independently manage the corresponding supply chain. Jumbo’s international expansion through Fox Group is also continuing. Eight JUMBO stores are now operating in Israel, while the first store in Toronto, Canada, is expected to open towards the end of 2026, provided there are no delays.