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Sonae’s H1 results showed a strong resiliency on the back of the solid sales performance of the food retail and electronics retail divisions. Sonae MC was able to leverage its leading position in Portugal and its broad presence across multiple food retail formats to benefit from the positive dynamic surrounding the market.
Companies: Sonae SGPS SA
The good performance in the food retail and the full consolidation of Sonae Sierra are improving the holding company’s top-line and profitability, the discount to NAV retracted to 18.9% but remains attractive.
The holding company’s achievements in 2018 marginally exceeded our expectations revenue-wise, while its bottom line was largely more fuelled by Sonae Sierra’s capital gains and Sonae RP’s sale and leaseback transactions.
Sonae reported an increase in turnover thanks to the positive contribution from all businesses, particularly food retail.
The holding company’s achievements over Q1 18 exceeded the management’s targets for FY18 with all businesses reporting increased turnover and an improved underlying EBITDA in comparison with Q1 17.
The company’s achievements in 2017 exceeded our expectations revenue-wise, while its bottom line was lower than our expectations due to the impact of non-recurrent effects in 2016.
Sonae’s 9M17 revenues grew by 6.9% to €4,115m on a yoy basis, fuelled by the positive performance of all businesses: Sonae Retail, Sonae FS and Sonae IM. Sonae’s underlying EBITDA grew by €9.6% to €221m in 9M17. The underlying EBITDA margin added 10bp to 5.4%. However, the holding’s EBITDA declined by 8.1% on a yoy basis to €273m, impacted by the non-recurrent items registered last year (benefiting mostly from the capital gains arising from the sale and leaseback transactions completed by Sonae
Sonae’s H1 17 interim financial statements reveal an 8% yoy increase in the holding’s revenues to €2,603m, fuelled by growth of 10% in Q2 17. Sonae’s underlying EBITDA increased by 9.2% to €116m, on a yoy basis. Thus, Sonae’s underlying EBITDA margin increased from 4.4% in H1 16 to 4.5% in H1 17. However, Sonae’s EBITDA suffered a sharp decline of 24% to €142m, i.e. a 5.5% EBITDA margin, down from 7.8% in H1 16. Indeed, over 2016, Sonae benefited from the positive impact of non-recurrent items (
Sonae impressed with 8.8% growth over the last quarter, raising its FY16 sales to €5,198m. The Food Retail business, through Sonae MC, increased sales by 5.6% during the whole year to reach €3,687m. Specialised Retail, including electronic and clothing, was the star performer for the retailer with an 11.2% increase. Retail properties delivered €72m revenues vs. €121m the year previously.
Sonae released a 6.7% increase yoy in 9M total sales to €3,882m, mainly driven by the retail operations (4.1% lfl growth over Q3). EBITDA has slightly enhanced, benefiting from non-recurrent items, albeit the underlying EBITDA is below the FY2015/16 level. Most divisions experienced declining profitability. Sustained by indirect results including the mark-to-market effect of NOS, net profit stood at €141m vs. €146m a year ago. Sonae succeeded in lowering its net debt to €1,248m, despite committi
Driven by positive growth in Food and Non-food retail formats, FY 2015 sales increased by 0.8%, yoy to €5,014m. The strong sales momentum for Food retail in Q4 supported this performance (+1.8% yoy and positive lfl). Retail property continues to generate cash (despite lowered level compared to 2014) following its high profitability. Net book value of the capital invested in Sonae MC, SR and IM real estate assets amounted, at the end of 2015, to €1,047m. Accounted as an equity associate, Sierra’s
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JOHN MENZIES+ (MNZS, BUY at 315p) – Note Publication: Evolutionary trends…
MARKS & SPENCER+ (MKS, HOUSE STOCK at 253p) Q3 TS – FY22 guidance firmed up, c5% underlying upgrade
NORTHBRIDGE INDUSTRIAL SERVICES+ (NBI, House Stock at 174p) - Further progress in Tasman disposal
BUNZL^ (BNZL, BUY at 2723p) – Note published: Solid strategic outlook
TESCO^ (TSCO, BUY at 292p) Q3 & Christmas TS – a beat to expectations and so further FY22 upgrades (c5%)
HILTON FOOD G
Companies: IDEA BRK ASC PFG MAB HFG TSCO BNZL NBI MKS MNZS
MCLS has announced the departure of its CCO, who is leaving for a role at SBRY. On the face of it this appears to be a loss. However, a lot of key commercial changes, namely in relation to its supply and format partnership with Morrisons are now in place, and the commercial team has been significantly strengthened. In Karen Bird the group also has a highly experienced director to take on additional responsibilities.
Companies: McColl's Retail Group Plc
Sainsbury’s posted a strong trading performance in Q3 plus Christmas period. The company managed to improve its volume-based market share in the grocery segment. The ongoing cost cutting plan and reduced promotional activity in other segments has prompted the management to improve the outlook for FY21/22 (underlying PBT of at least £720m; +60m vs previous guidance). While the coming quarters should witness higher inflation, pandemic-led demand is also likely to normalize. We maintain our positi
Companies: J Sainsbury plc
Walmart had another rock solid quarter with a revenue growth of 7.6% in constant currency and a staggering 24.1% growth in operating income at constant currency. Moreover, Walmart Connect, their advertising business in the United States, more than doubled in size as compared to the prior-year quarter, with more than 170% growth in active advertisers. The management provided a series of interesting updates with respect to various innovative initiatives. Their latest investments aim to increase as
Companies: Wal-Mart Stores (WMT:NYSE)Walmart Inc. (WMT:NYS)
Walgreens Boots Alliance delivered a strong quarter result surpassing Wall Street expectations across all business segments, reflecting a strong operational performance. The strategic investments that the management are making should enable Walgreens' retail pharmacy business to develop coordinated care models that will assist their customers and patients in successfully managing chronic diseases and achieve better health outcomes. This will also help the company stay competitive against rival,
Companies: WALGREENS BOOTS ALLIANCE (WBA:NYSE)Walgreens Boots Alliance Inc (WBA:NAS)
Carrefour has become flavour of the season as M&A news is recurring for this French grocer. News reports state that Auchan is preparing a fresh acquisition bid and is in talks with a PE fund. Any such development reiterates our conviction of the stock’s attractiveness. However, we doubt if any such announcement would be made before the upcoming French Presidential elections.
Companies: Carrefour (CA:EPA)Carrefour SA (CA:PAR)