Portuguese conglomerate Sonae's MC business, which includes its supermarket and hypermarket operations, reported a 16% increase in sales in the third quarter of its financial year, to €1.6 billion.
Like-for-like sales at the business, which incorporates the Continente banner, were up 13.3% for the quarter, with a positive performance reported in both food and non-food formats, the group said.
For the first nine months of the year, turnover at MC was up 10.6% (like-for-like 8.6%), to €4.3 billion.
The group said that it continues to face strong cost pressures, amid record high energy costs that are €40 million higher than at the same time last year. With this in mind, the group said that its profit margin fell 100bps to 9.9%, while underlying EBITDA stood at €158 million in the third quarter.
Group-Wide Performance
The wider Sonae business reported a 4.2% decline in net income, pressured by a reduction in operating margins in the context of 'strong pressure on the cost base', the group said.
In addition, transport costs, higher supply prices and consumers trading down to lower-priced products all affected profitability, it noted.
'Complex And Volatile'
"During the third quarter, we continued to experience a complex and volatile geopolitical and macroeconomic environment," commented Cláudia Azevedo, CEO of Sonae. "Rising levels of inflation and interest rates, along with consistently high energy costs, have significantly affected our communities.
"Despite this context, our businesses managed, once again, to increase their investment levels, reinforce their value propositions and support families in facing these challenges, namely by maintaining competitive prices and responding to the new needs of consumers."
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