Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SONAE. We currently have 3 research reports from 1 professional analysts.
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19 Jan 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.
Persistent pressure on margins
11 Nov 16
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.
Margins missed our expectations
21 Mar 16
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.
Roughly in line with our expectations
23 Feb 17
JM announced FY 16 net result of €593m, of which €232m related to the Moterrorio disposal as exceptional items. The EBITDA margin increased to 5.9%, boosted by the good resilience of Biedronka’s profitability. The cash flow situation improved, leading to a negative net debt. Thanks to stronger cash flow generation, the company proposed a €0.60 dividend per share (flat compared to last year, including the distribution of free reserves of €0.375 per share).
15 Jan 15
Booker has announced a Q3 IMS with trading in line with our expectations. LFL sales growth increased 2.5%, with tobacco sales up 2.4% (a significant improvement on the last quarter) with non-tobacco sales increasing 2.6%. The turnaround of Makro continues and non-tobacco sales declined by 6.5% as Booker exit’s unprofitable lines, whilst 9 Makro stores have converted into a new, improved format. The outlook for profits and net cash for the year remains in line with management’s expectations. Following today update we leave our 2015 forecasts unchanged. We retain our Hold recommendation and 150p target price.
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.
N+1 Singer - Conviviality - Delivering against strategy
30 Jan 17
Interims are robust and broadly in line with our expectations. The 4.4% LFL sales growth and positive KPI’s on customer wins and higher spend per outlet demonstrate that the strategy is working. H2 has started very well with good momentum across all 3 divisions as the new MD’s begin to have a positive impact. With PBT 2/3rd H2-biased we make no major forecast changes but see the risk on the upside. The shares are up 21% YTD but given the positive overall tenor and valuation read-across from the Booker/Tesco deal (24.5x P/E), CVR remains inexpensive on a cal’17 P/E of 11.2x with a 5% DPS yield and a 3 year EPS CAGR of 24%. We stay at Buy with a 290p TP.
Have investors checked out too early?
26 Feb 16
While some of the share price decline from 8p in December can be attributed to dilution from the placing announced that month and general market risk aversion, the current market cap of c.£8m appears not to recognise the progress in establishing a global brand, a range of unique accommodation formats and an ever expanding event programme, moving towards profitability and with exciting prospects.