Portuguese food retail group MC, part of Sonae SGPS and formerly known as Sonae MC, has reported first-quarter 2022 sales of €1.29 billion, up 3.8% year-on-year and 2.2% higher on a like-for-like basis.
The performance was driven by strong performance of its new growth business segment (health, wellness, beauty and foodservice), which reported a turnover of €234 million (+21.9% y/y and +29.9% LFL).
Hypermarket sales totalled €421 million (+1.4% y/y and +1.9% LFL), while supermarket sales amounted to €639 million (no change y/y and -2.1% LFL).
The positive result was achieved despite the unfavourable Easter calendar and tough comparatives with the same period the previous year.
'Outperformed The Market'
In a statement, MC said it outperformed the overall market and boosted market share.
Underlying EBITDA increased to €108 million, corresponding to a stable margin of 8.4%, despite increased cost pressures.
MC further boosted its solid financial position, reducing net financial debt to €466 million.
Net profit grew 98.9% year-on-year, to €20.2 million.
New Store Concepts
During the quarter, MC continued developing new customer offers, including launching the ‘Cozinha Continente’ concept in the food solutions segment, as well as new and innovative ready-to-eat offers.
Online sales dropped 14% on an annual basis, due to normal consolidation after registering exceptional growth in the last two years.
MC invested €26 million in its operations during the period, mainly for new store openings, store network upgrades and refurbishment initiatives.
Looking ahead, the retailer expects that uncertainty will remain for the rest of 2022, as the impacts of the war in Ukraine and its economic consequences are not fully yet known.
It also forecasts that higher energy and other input prices will continue having an impact on the cost base, challenging consumers’ purchasing power and confidence.
© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.