Sonae’s Food Retail Business Sees 7% Growth In Q2
Portuguese food retailer Sonae MC has reported a 7% annual increase in turnover during the second quarter of 2017, growing to €922 million.
For the first half of the year, turnover amounted to €1.77 billion, which represents an increase of 5.1% year-on-year, and reinforces the retailer's market leadership position.
In H1, turnover benefited from a like-for-like sales growth of 0.7%, and also from the opening of six new Continente Bom Dia stores. In Q2, turnover was fuelled by like-for-like sales growth of 2.6%.
However, the retailer's underlying EBITDA margin fell to 4.6%, due to a competitive environment and the expansion of its store network through new convenience formats.
As part of its strategy to expand in the health and wellness segment, Sonae MC now operates seven Go Natural supermarkets and is developing restaurant outlets under the same banner. In May, the company opened Dr Well’s, its first clinic specialising in dental and aesthetic medicine.
Commenting on its results, Ângelo Paupério, Co-CEO of Sonae, said, “Increased competition in different business areas has demanded aggressive productivity increases, along with high levels of investment that have resulted in the reinforcement of competitive positions in our main sectors.”
Overall, Portuguese conglomerate Sonae reported a consolidated turnover of €2.6 billion in the first half of the year (+8%) and €1.32 billion in Q2 (+10%).
Commenting on its performance, Barclays European Food Retail Equity Research said, " Although there is admittedly some hidden value within Sonae's asset portfolio, we believe that the remaining complex group structure and the limited visibility on the potential catalysts ahead might limit the share price upside potential.”
2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.