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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Tesco’s H1 performance was stronger than our and the street’s expectations. The key takeaways were positive lfl in Q2, a gain in market share, step rise in operating profit and a credible plan to generate future growth. Moreover, the success in clocking price deflation (despite external headwinds) and adept supply chain management were also some noticeable developments. We remain positive on the company’s management and the stock’s prospective performance. We will improve our financial estimates
Companies: Tesco PLC
MCLS has a leading position in the expanding convenience sector, and a clear growth strategy. Following strong uplifts at recent stores converted to a Morrisons Daily, it has raised £33m to accelerate and expand the scope of the conversion programme. It plans to convert 350 stores (vs 300 target previously) by Nov’22 (a year earlier than the previous plan) and increase the investment in each to c£90k from c£60k to capture a bigger profit opportunity. Sales uplifts range from 20-45% (avg. 20-25%)
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McColls has announced 2 key strategic developments today, with a new Morrisons supply partnership and the extension of its bank facilities. Conclusion of these vital negotiations represents a significant milestone, and allow management to focus on a new and exciting execution phase as it pivots towards a food-led convenience offer. It will also facilitate the delivery of sustainable profitable growth at a time when the importance of neighbourhood stores has never been greater. The news should be
A brief but positive RNS reach this morning. It highlights membership growth surpassing 30k and finalisation of the new supply chain facility. Both developments are further illustration of delivery against IPO plans. Particularly pleasing is the membership metric, which with the busier Xmas period still to come, is ahead of our full year working assumption. We hold off making forecast changes but clearly post today’s membership news, the upside risk has strengthened. We use this update to also r
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