Biedronka Owner To Invest EUR1.3bn Over Next Three Years

Portuguese mass grocery retailer (MGR) Jerónimo Martins has laid out plans to invest EUR1.3bn in its retail units over the next three years. About 70% of the capex budget will go towards strengthening the retailer's core Polish discount subsidiary Biedronka. Although based in Portugal, Jerónimo Martins' most important market is Poland. Bearing in mind that Biedronka contributed to over 50% of group earnings before interest, taxes depreciation and amortisation (EBITDA) in H109 (the six-months to June 30 2009), BMI believes that Jerónimo Martins' decision to channel almost three-quarters of its capex budget into what is arguably emerging Europe's most promising

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