Greek retail group Jumbo reported a solid first half for 2026, with net profit rising 2.92 per cent year on year to €120.6 million and sales increasing 4.42 per cent to €519.26 million. The company also reaffirmed its full-year guidance and approved an extraordinary cash distribution of €1 per share, underscoring both operational resilience and a still-strong balance sheet.

Cyprus Normalises After Early Disruption

One of the clearer signs of stabilisation came from Cyprus, where Jumbo said the market has gradually recovered after initial disruption linked to the island’s proximity to conflicts in the Middle East. Conditions improved over the summer, helping restore a more normal trading pattern in one of the retailer’s four directly operated markets.

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Jumbo currently runs six stores in Cyprus, alongside 53 in Greece, 10 in Bulgaria and 20 in Romania, bringing its directly operated network to 89 stores. The company is also preparing to open a new store in Cyprus in 2027 as part of a broader expansion programme across its core markets.

Sales Growth Holds Up In A Challenging Environment

The first half unfolded against a difficult macroeconomic backdrop, with geopolitical tensions continuing to affect energy prices, freight rates and supply chains, while also weighing on consumer confidence. Even so, group sales climbed to €519.26 million from €497.28 million a year earlier.

Gross profit increased 3.77 per cent to €277.94 million, EBITDA rose 2.81 per cent to €170 million, and net profit came in at €120.6 million, compared with €117.18 million in the first half of 2025. Management left its 2026 outlook unchanged, still expecting sales growth of about 5 per cent and net profit in the range of €310 million to €320 million.

The company noted that the second half traditionally contributes a larger share of annual sales and earnings, which gives the full-year outlook additional support.

Greece And Bulgaria Lead, Romania Remains The Pressure Point

Greece, which accounts for roughly 60 per cent of Jumbo’s business, continued to deliver healthy growth. Bulgaria also performed strongly, benefiting from a favourable operating environment shaped by progress toward euro adoption, ample liquidity, a stable banking system, low public debt and robust wage growth.

Romania remained the most challenging market in the portfolio. High inflation, pressure on the leu, fiscal tightening and the increase in VAT from 19 per cent to 21 per cent in August 2025 all weighed on real disposable income and consumer demand.

Jumbo said the Romanian comparison base would become more meaningful from August, when sales will be measured against a period in which the higher VAT rate was already in place. But the company stressed that this was largely a technical effect and did not by itself signal a material recovery in consumption, which remains under pressure from inflation, currency weakness and fiscal measures.

Margins Stay Under Pressure

Gross margin fell by 33 basis points in the first half, reflecting the depreciation of the Romanian currency and Jumbo’s decision to absorb part of the VAT increase rather than fully pass it on to consumers. A more favourable euro-dollar exchange rate, relatively contained freight costs and a lower share of franchise-related sales helped offset some of that pressure.

Still, the outlook for logistics is becoming less predictable. Recent developments in international shipping have pushed freight rates higher again, adding a new layer of uncertainty for the second half of the year.

Strong Liquidity Supports Capital Returns

Jumbo continues to operate without bank debt. As of June 30, cash and cash equivalents exceeded total lease liabilities by €485.65 million, giving the company substantial financial flexibility.

That balance sheet strength is allowing the retailer to pursue shareholder returns and growth investments at the same time. On September 23, the board approved an extraordinary cash distribution of €1 per share, worth approximately €134.37 million. The ex-distribution date is November 16, the record date is November 17, and payment begins on November 20.

Earlier in 2026, Jumbo had already returned €161.2 million, or €1.20 per share, to shareholders. Including the latest payout, total cash distributions for the year amount to €2.20 per share, or about €295.57 million.

Expansion Continues Across Stores, E-Commerce And Logistics

Despite the generous capital returns, Jumbo is pressing ahead with its expansion plan. A new hypermarket in Baia Mare, Romania, is expected to open in October, while further stores are planned in Romania and Cyprus in 2027. Greece is expected to see a quieter opening schedule next year, with the next four stores still in preparation and likely to start opening from 2028. In Bulgaria, the group is targeting one additional hypermarket within the next two years.

Romania remains central to Jumbo’s longer-term strategy, with the company maintaining its goal of doubling the number of stores there over the next decade.

Jumbo is also testing smaller-format pop-up stores designed for tourist and high-traffic locations. Suitable sites have already been identified, and the first openings are expected in 2027 or 2028.

Its digital footprint is expanding as well. The retailer already operates online stores in Greece, Cyprus, Bulgaria and Romania, and plans to launch an online store in Hungary by late 2026, supported by its existing e-commerce infrastructure in Romania.

Supply Chain Investment Remains A Strategic Priority

Logistics development is moving in parallel. Jumbo is progressing with the acquisition of the roughly 60,000-square-metre Giga distribution centre in Romania, which should improve delivery capacity and efficiency in that market. A new distribution centre in Thessaloniki is also under development and is expected to be completed in 2027, serving northern Greece and Bulgaria.

At the same time, the expansion of Jumbo’s partnership with BALFIN Group, together with a new supply model for additional markets covered by the agreement, is expected to free up capacity across the company’s existing warehouses and distribution centres. That, in turn, is prompting Jumbo to revisit plans for a new distribution centre in Oinofyta.

The retailer is also in discussions with Fox Group on extending the same supply model to Israel and Canada.

International Partnerships Broaden Jumbo’s Reach

Beyond its directly operated network, Jumbo currently has 48 JUMBO-branded stores across seven countries through partnerships: 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 existing operations 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 manage the supply chain independently.

Jumbo’s partnership with Fox Group is also advancing. Eight JUMBO stores are now operating in Israel, while the first location in Toronto is expected to open toward the end of 2026, subject to no delays.