Heightened tension in the Middle East, combined with the delays in products shipments during the critical second half of the year, have created new asymmetric problems in the supply chain.

 

Delivery time has doubled and related costs skyrocketed. These made it impossible to plan and serve the market contingently.

 

Unfortunately, Jumbo Group management's fears and recent assumptions have been confirmed.

 

While the "closure" of the Suez Canal was initially perceived to be temporary, it now seems to affect the whole of 2024, as there is no sign of positive developments, for the time being.

 

Despite the headwinds in global trade, the management of Jumbo Group firmly believes that the normalization of the supply chain (with any positive impact) will only occur after coordinated political intervention, especially as we approach the US presidential election.

 

Undoubtedly, stock levels for 2024 will be negatively affected by the inability to ship products within the desired timeframe.

 

Therefore, the Jumbo Group is adjusting its policy accordingly. The sole objective is to keep prices at levels consistent with consumers' income.

 

We recall for 2024, the management's estimate was for sales growth and profits of the JUMBO Group at 8%.

 

The six-month sales trading confirms the abovementioned sales growth estimate. However, management believes such a growth rate should not be extrapolated in the second half of the year, since it is possible that conditions will get worse before getting better.

 

Based on today's data and other things being equal, sales growth for 2024 is projected at +4%. Profitability should flirt with 2023 levels.

 

Providing timely information to shareholders - partners - is an ongoing commitment of Jumbo's management. However, in a highly volatile environment, any forward estimate may overnight become outdated.

 

Regarding the sales performance in the seven months of the year, the Group's sales increased by c. 7% y-o-y.

• In July 2024, Group's sales increased by c. 2% y-o-y.

Sales performance by country:

 

Greece:

In July 2024, the net sales of the parent company - excluding intragroup sales – increased by c. 3% y-o-y.

Overall, for the seven months of 2024 the net sales of the parent company - excluding intragroup sales – increased by c. 7% y-o-y.

Cyprus

The network's sales decreased by c. 10% y-o-y in July 2024. Overall, for the seven months of 2024 the network's sales increased by c. 1% y-o-y.

 

Bulgaria

The network's sales were flat in July 2024. Overall, for the seven months of 2024 the network's sales increased by c. 9% y-o-y.

 

Romania

The network's sales (including the on-line store www.e-jumbo.ro) increased by c. 7% y-o-y in July 2024. Overall, for the seven months of 2024 the network's sales increased by c. 13% y-o-y.