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Although Sonae posted lower net income in 9m-23 owing to higher funding costs and tax expenses coupled with an increase in depreciation due to the investment in the expansion and digitalization of its businesses, the company once again demonstrated the resilience of its business model. The Portuguese HoldCo reported a 7% yoy improvement in consolidated EBITDA, with the underlying EBITDA margin up by 20bps. In terms of NAV, too, Sonae was in the green, with an increase of 4% qoq to €4.4bn.
Companies: Sonae SGPS (SON:ELI)Sonae SGPS SA (SON:LIS)
AlphaValue
While Sonae recorded a fall in net income in H1 23, due to higher financing costs, tax charges and increased impairment, as a result of investment in the expansion and digitalisation of its activities, Sonae demonstrated the resilience of its business model with an expanding EBITDA margin. The challenging environment had no impact on the valuation of its businesses, with NAV growth of 4% qoq.
Sonae posted a good set of H1 23 results in terms of operating performance, demonstrating once again the resilience of its business model.
Sonae started the year on the right foot in terms of NAV (+2.6% qoq), top-line growth (+12% yoy) and profitability (fairly stable EBITDA margin) amidst lingering inflationary trends, and increasing interest rates. The story was not all rosy, however, when it came to net income (group share), which fell by 38.3% to €26m on the back of higher depreciation, taxes, financial costs and inflation.
Despite a 28% increase in headline net profit Sonae, owner of Portugal’s largest food retailer, was adversely hit by supply chain disruption, inflation and rising interest rates in 2022. Margin compression in an inflationary environment with soaring energy prices led to a 17% fall in Sonae’s underlying net profit, a decline that was more than offset by €142m of one-off capital gains. The outlook for the coming years remains bleak on the back of high inflation coupled with a projected decline in
Over 9m 22, Sonae demonstrated resilience in the increasingly-challenging environment of rising energy costs and interest rates. However, the first signs of fragility were felt in Q3, as evidenced by the decline in margins, which were under pressure from inflation. Fortunately, the Portuguese HoldCo can boast of a 3% increase in NAV in Q3 to €4bn, which should somewhat reassure investors.
Sonae remains undisturbed by supply chain disruptions, unprecedented inflation and interest rate hikes. For the second quarter in a row, the Portuguese holding company posted promising results in an increasingly challenging environment. Although valuations have not been spared the market turmoil, this is not the case for the revenues and operating performance of the portfolio companies with top-line growth across all the businesses.
Companies: Sonae SGPS SA (0ML0:LON)Sonae SGPS SA (SON:LIS)
Sonae’s reported resilient Q1 2022 results on the back of solid revenue performances from the food and fashion retail divisions. Despite the current challenging market environment with high inflation, supply chain disruption and geopolitical tensions, Sonae was able to increase its top-line performance in almost all of its businesses.
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
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sonae SGPS SA. We currently have 11 research reports from 1 professional analysts.
Eleco’s FY23 results show robust organic recurring revenue growth of +17% with recurring revenue +22% to £20.7m, adj EBITDA +2% ahead of the January update, and a confident outlook with Q1 ARR already at £24.5m vs £22.6m at FY23. At this point, the excellent start to FY24 leads us to reiterate our FY24-26E revenue, adj EBITDA, EFCF, and DPS, and we include the April 2024 acquisition of Vertical Digital in our FY24-26E net cash, as we explain below. As Eleco builds upon the successful acquisition
Companies: Eleco Plc
Cavendish
Made Tech has won a material expansion (worth up to £19.5m/2yrs) with a long-standing customer, The Department for Levelling Up, Housing and Communities (“DLUHC”). Coming off the back of a soft H1 bookings performance, we expect this win to materially boost investor sentiment and reassure how notwithstanding a tough backdrop (given an impending general election) MTEC continues to outcompete legacy providers and in-so-doing, grow its share of wallet with large/strategic customers. Landing near FY
Companies: Made Tech Group PLC
Singer Capital Markets
Companies: Cerillion Plc
Liberum
Cerillion has announced a very solid update, as H1 sales and EBITDA are both up 10% y/y to £22.5m and £10.9m respectively, notwithstanding the exceptionally strong base period (sales and EBITDA +27% and +38% resp.). Results therefore point to continued strong customer demand, reflecting how Cerillion’s out-of-the-box product continues to resonate and gain adoption, particularly in a ‘budget conscious’ environment, by offering faster time to market, greater configurability and at a lower cost. Me
As reported in March, underlying EBITDA profitability improved to record levels despite FX headwinds. Further platform and proposition developments were completed, key steps on its digital roadmap, and it has already won 7 contracts YTD. Alongside planned growth in private membership, this will at least offset the loss of one contract. Forecasts are left unchanged today and, as member engagement throttles back up, FX headwinds ease, and proof points of digital efficiency emerge, markets should b
Companies: Ten Lifestyle Group PLC
itim is a disruptive SaaS-based platform that enables store-based retailers to implement a proven Omni-channel solution. This morning, the group has announced an additional professional services contract with its long-standing client, The Entertainer. Following a year-long trial, The Entertainer is opening in over 800 Tesco stores across the UK & Ireland, alongside a supplier agreement for Tesco stores across Central Europe. Under the contract, The Entertainer will extend its use of itim's Unify
Companies: Itim Group PLC
WHIreland
GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI
Companies: Intelligent Ultrasound Group Plc
22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARV CTL AFRN FEN HUW TENG BBSN EAAS VAL
Hybridan
Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
Companies: Alphawave IP Group PLC
Capital Access Group
Companies: FOG PEB KBT EMR TIME GETB JNEO
Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce
Companies: Devolver Digital, Inc.
Zeus Capital
This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored. We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.
Companies: Idox plc
Progressive Equity Research
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024
Companies: CPX SLP FA/ FIPP ECR ETP ORCA
Companies: IGP RUA BOOM
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