Sonae shoots profits to 42 million and breaks sales record until March – Empresas

Against a loss of 59 million euros in the first quarter of 2020 and profits of only one million euros in the same period last year, the Sonae group closed its accounts until March with a net result of 42 million. euros, year on year. EBITDA for the year rose by 17.2% to 149 million euros.

Sales volume increased by 5.1% to reach a record figure of 1.69 billion euros, with the MC (Continent) activity contributing nearly 1.3 billion euros, or 3.8% of more than in the first three months of last year.

“The start of 2022 has been very good for Sonae. Our businesses have continued to present a successful performance in their respective markets and the group has maintained a solid growth trajectory, with better levels of profitability, which has led to greater appreciation of the portfolio”, said Cláudia Azevedo, CEO of Sonae, in the message accompanying the presentation of the accounts for the first quarter of 2022, published this Wednesday, May 18, at the Commission des Marchés Financiers (CMVM).

Cláudia Azevedo also highlights the figures that embody a solid capital structure, with comfortable leverage ratios and liquidity levels: “Our consolidated performance, combined with our portfolio management activity, generated 627 million euros of ‘free cash flow’ over the last 12 months, allowing a significant reduction in net debt of around 600 million euros”, he specifies.

Strictly speaking, the net debt reduction was 588 million euros last year, including 368 million between January and March 2022.

At the same time, it invested 110 million euros in acquisitions during the first three months of this year.

“These results were obtained in a very difficult context, marked by the Russian invasion of Ukraine”, notes Cláudia Azevedo, noting that, “although Sonae is not directly and materially exposed to these countries”, the activities of the group “have already felt the indirect effects of the conflict, including through rising energy prices, widespread inflation and constraints in supply chains, having successfully overcome these challenges,” he concludes. .

However, “regardless of how the global economy and financial markets evolve, with our business group, our strong financial position and the skill of our teams, we are well positioned to weather this cycle of uncertainty, continue to strengthen our competitive positions and seize the opportunities that arise,” said the CEO of the group based in Maia.

Fashion up, Worten down, Sierra triples its profits

By business units, besides the giant MC, which according to Sonae “continues to gain market share”, the highlight goes to the fashion sector, where it explores brands such as MO, Salsa and Zippy, “the Zeitreel able to return to the sales levels of the first quarter of 2019, after two very difficult years for the fashion industry, affected by the restrictions of the pandemic”, after having closed the first three months of 2022 with a sales volume of 96 million euros, representing an annual increase of 57%.

In sports, sales of ISRG (Iberian Sports Retail Group), Sonae’s joint venture with JD Sports, owner of the SportZone brand, increased by 66% to 366 million euros, the online channel strengthening its 15.7% to 21.1% in turnover, “essentially due to the acquisition of Deporvillage”, admits Sonae.

Worten, after two consecutive years of significant growth, “the electronics market in Portugal contracted in the first quarter of 2022, mainly due to the pandemic context in the first quarter of 2021, which clearly benefited the online channel and stimulated sales of computer products”. In addition, the last “less severe winter”, which “limited the search for seasonal categories”.

“This unfavorable context of the electronics market and the reorganization of the offer in mainland Spain contributed to a drop in turnover [da Worten] by 4.1% to 261 million euros in the first quarter of 2022”, reveals Sonae.

At Sierra, which embodies the group’s real estate activity, particularly shopping centers, “the start of 2022 showed positive signs of recovery”, with net income tripled to 9.8 million euros and a valuation assets up 5.1% to 972 million euros, further highlighting that tenant sales were up more than 90% year-on-year.

In financial services, the production volume of the Universe increased by 23% to 257 million euros, after winning “96 thousand new customers compared to the first quarter of 2021, reaching around 989 thousand at the end of the first quarter of 2022,” he added. ensures.

Nos recorded revenue of €373 million through March, translating to year-on-year growth of 10.6%, driven by the media and entertainment segments (over 71.1%) and telecommunications (9%), “with a positive contribution impact from mobile subscriptions, service solutions for the B2B segment and roaming revenues due to the reduction in travel restrictions”, explains Sonae. Profits increased by 35% to 41 million euros compared to the first quarter of last year.

Finally, Bright Pixel (formerly Sonae IM) “continues to be active in its portfolio management activity”, accumulating several sales (it left Safetypay and ciValue) and purchases (it joined Experify and Hackuity), having also participated in a €35 competition from Cybersixgill million dollar round.

“At the end of the first quarter of 2022, the capital invested in the active portfolio reached 159 million euros and the NAV amounted to 378 million euros”, concludes Sonae about the activity of its branch of technology investment in the first three months. This year.

However, after the end of the quarter, Bright Pixel reached an agreement with Thales Europe to sell the entire share capital and voting rights of Maxive, a holding company which includes S21sec and Excellium.

“The transaction has an underlying ‘enterprise value’ of Maxive of €120 million and is expected to have a positive impact on Sonaecom’s consolidated results of approximately €63 million,” Sonae said.

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