Retail

Sonae's MC Arm Reports 16% Increase In Sales In Third Quarter

By Steve Wynne-Jones
Share this article

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."

© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days

Copyright © 2023. All rights reserved. Developed by Square1 and powered by PublisherPlus.com