Sonae: sales reach record 1.7 billion, profits soar

Sonae’s profits in the first quarter of the year soared to 42 million euros, against 1 million in the same period last year. It’s “a significant improvement,” the company said in a statement on Wednesday.

Sales hit a record 1.7 billion euros, up 5% from the first three months of 2021.

“The start of 2022 has been very good for Sonae. Our businesses continued to perform successfully in their respective markets and the Group maintained a solid growth trajectory, with improved levels of profitability, translating into greater portfolio appreciation.” This is how the Executive President of Sonae, Cláudia de Azevedo, comments on a quarter in which underlying EBITDA increased by 10%, to 121 million euros, total EBITDA increased by 17%, to 149 million euros, “despite the increase in energy costs around 20%”, and net debt amounted to 931 million euros (600 million less than a year earlier).

“Our investment portfolio has appreciated, with the NAV (net value of the portfolio) reaching 4.1 billion euros, 65 million euros above the value recorded at the end of 2021”, underlines the manager, emphasizing that these results “were obtained in a very difficult context, marked by the Russian invasion of Ukraine”, which “has affected consumer confidence”.

The Ukrainian effect

“Although Sonae is not directly and materially exposed to these countries, our companies have already felt the indirect effects of the conflict, in particular through rising energy prices, generalized inflation and constraints in supply chains. supply, having managed to overcome these challenges”, says about the impact of the war.

As for the future, work continues and, “whatever the evolution of the world economy and financial markets, with our group of activities, our solid financial situation and the competence of our teams, we are well positioned to weather this cycle of uncertainty, continue to strengthen our competitive positions and seize the opportunities that come our way,” he said.

Investment totals 516 million in 12 months

In a quarter where acquisitions totaled 110 million euros and the position in Sierra strengthened to 90%, the group completed a 12-month cycle with investments of 516 million and growth of 18.7% in investments (capital expenditure) resulting from the company’s organic investment, indicates the press release published the day after Sonae announced the sale of Maxive (cybersecurity) to ThalesEurope.

“Regarding the portfolio management activity, Sonae invested €220m and received €693m with the sale of assets, mainly with the sale of the minority stake in MC and the 50% stake in Maxmat,” the press release said in which Sonae highlights its “solid capital structure, with very comfortable leverage ratios and liquidity levels”.

At the end of the first quarter, the group had 1.150 billion euros of available liquidity (cash and available credit lines), maintaining “a low cost of financing (less than 1.0%)” and “improving the profile of debt maturity for nearly 5 years”, with 65% of long-term financing lines associated with sustainable, green or ESG performance”.

MC increases its quota

By activity, Sonae MC grew by 3.8% (2.2% on a like-for-like basis) and continued to gain market share, with sales of nearly 1.3 billion euros, driven by non-food formats, recovering from last year’s lockdown restrictions. and captured the improvement in non-domestic consumption, and by food inflation which reached 5% in the first quarter.

Online sales doubled from pre-pandemic levels, reaching 3.2% of revenue.

“In terms of profitability, MC’s positive commercial performance contributed to a 1.5% improvement in underlying EBITDA, with a stable margin of 8.4%, although it was penalized by the additional pressure on the prices of specific inputs, such as energy,” says Sonae.

At Worten, revenue fell 4.1% to 261 million, contrasting with the 29.3% jump recorded in the first quarter of last year and reflecting the contraction in the electronics market after two consecutive years of significant growth due to the pandemic context, but also to a milder winter which limited demand for seasonal categories and the reorganization of supply in Spain.

Sierra triples its profits

Sierra tripled its profit to 10 million euros, with an appreciation of 5.1% of assets, now at 972 million “after two difficult years”, marked by the closure of shopping centers imposed by the pandemic.

Sierra’s European portfolio saw higher occupancy (96.9%, +0.6pp y/y) and comparable tenant sales increased over 90% year over year. year on year at the end of the year.

At the end of the quarter, Sierra’s NAV, according to the INREV methodology, increased by 5.1% compared to the end of 2021 to 972 million euros, driven by the appreciation of the Brazilian real and the Colombian peso, as well as than by the improvement in the net result for the period.

Zeitreel grows by 57%

In fashion, Zeitreel grew by 57% and closed the quarter with consolidated sales of 96 million euros.

In financial services, the evolution of operating activity and results “has been positive over the past 12 months and should continue over the coming quarters”. The universe’s production volume increased by 23% to 257 million and the number of customers reached 989,000, adding up to 96,000 new customers compared to the same period of the previous year. The turnover reached 8 million euros.

Bright Pixel, which remains active in its portfolio management activity, closed the first quarter with capital invested in the active portfolio at 159 million euros and an NAV at 378 million euros.

In telecommunications, NOS revenue increased by 10.6% to €373 million, driven by all segments: media and entertainment (+71.1%) and telecommunications (+9%).

ISRG grew by 66%, to close with sales of 366 million euros, also driven by the online channel, which saw its contribution increase from 15.7% to 21.1%, mainly thanks to the acquisition by Deporvillage.

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