Still insufficient impetus from new businesses
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 RP in 2016. Sonae’s indirect results stood at €37m, increasing by €16m on a yoy basis and lifted by the positive effect of the valuation of Sierra’s assets, as well as from a capital gain driven by the deconsolidation of MDS. Thus, the holding’s net income gave up only 2.9% to €133m.
16 Nov 17
Anchored on a successful expansion strategy
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 (mostly from the capital gains arising from the sale and leaseback transactions completed by Sonae RP in H1 16). Consequently, Sonae’s direct results were down 35.5% to €43m, driven primarily by non-recurrent items. Earnings from joint ventures rose by 24.5% in H1 17 to €32m, benefiting from the positive effect of the valuation of Sierra’s assets, as well as from a capital gain driven by the deconsolidation of MDS. Thus, Sonae’s bottom line gave up only 2.5% to €75m.
14 Sep 17
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.
19 Jan 17
Persistent pressure on margins
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 committing greater capex predominantly in Food and Specialised Retail. Sonae Sierra manages a retail real estate portfolio with a €909m book value, of which 22% is freehold.
11 Nov 16
Margins missed our expectations
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 result experienced a 15.9% jump, benefiting from the asset valuations and the yield compression. However, the depreciation of the Brazilian real offset the 2.8% tenant sales increase in Brazil and 2.0% rise in Europe.
21 Mar 16