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Retail

Sonae Sees Consolidated Turnover Up 12% In First Half

By Dayeeta Das
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Sonae Sees Consolidated Turnover Up 12% In First Half

Sonae has reported a 12% year-on-year increase in consolidated turnover to over €3.8 billion in the first half of its financial year.

This growth was supported by market share gains at MC and Worten and investments in business expansion, Sonae said in a statement.

Underlying EBITDA amounted to €301 million, while EBITDA margin decreased by 0.2pp year on year, due to continued efforts to absorb part of the inflationary pressure, especially in food retail formats.

Net profit attributable to shareholders reached €69 million, reflecting the support to households, the increase in financial costs and taxes, and the investment in business expansion and digitalisation, the Portuguese company noted.

'Very Positive Performance'

Cláudia Azevedo, CEO of Sonae said, "In the second quarter of the year, and despite the volatile macroeconomic environment and challenging competitive contexts, Sonae recorded an overall very positive performance. Our businesses continued to grow based on unique value propositions for our customers and we maintained the active management of our portfolio to create value for our shareholders.

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"In terms of operational performance, our teams continued to work hard to mitigate the impacts of inflation on consumers and offer the best quality at the lowest prices, and were able to reinforce the market leadership positions of Continente and Worten."

Investments

Sonae's consolidated investment witnessed a 22% increase to €684 million in the last 12 months, driven by organic business expansion and acquisitions.

The group added that it established partnerships to create operators in health, wellness and beauty retail in Spain and consumer credit in Portugal, took over the entire share capital of Sierra, and made six new acquisitions in the technology area.

In Spain, MC combined Arenal and Druni to create what it describes as a 'leading player' in the health, wellness and beauty segment in Iberia.

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Executed in partnership with Wells in Portugal, Sonae expects a combined turnover of more than €1 billion from this business.

Elsewhere, Bright Pixel continued to expand its investment in technology-based companies with three new minority investments completed in the second quarter, and now has more than 40 companies in its portfolio.

Azevedo added, "Looking ahead, I am confident that our portfolio of leading businesses and our strong ambition, together with our solid financial position, ensure Sonae has the ability to respond to the needs of all our stakeholders and create economic and social value for all."

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