Lisbon, March 1 - Portuguese retailer Jeronimo Martins posted a 5.2 percent rise in 2006 net profit on strong sales growth in Portugal and Poland on Thursday, better than analysts' estimates.
Net profit at Portugal's second-largest retailer rose to 116.2 million euros ($153.6 million) compared with an average estimate of 110 million euros from 10 analysts in a Reuters poll.
Sales increased by 15 percent to 4.4 billion euros in 2006 from the previous year.
"The group's retail chains in Portugal performed strongly in 2006 and market share increases were achieved in all the formats," Jeronimo Martins said.
"Particularly outstanding was the turnover and earnings growth of Biedronka, which confirmed to be the undisputed leader in the Polish retail market," it added.
Jeronimo Martins said its board of directors will propose a dividend of 0.44 euro per share at the next shareholder meeting on March 30.
Martins trades at about 21 times estimated 2007 earnings, higher than French rivals Carrefour, which trades at about 18 times this year's earnings, and Casino, which trades about 14 times 2007 earnings.
"Expansion to enhance market positioning in Portugal and Poland will be among our first priorities," Martins said.