Sonae Boosts Sales and Profitability in 1H18

LISBON, Portugal, August 24, 2018 /PRNewswire/ --

Sonae (Euronext: SON) continued to expand its businesses during the first six months of 2018. Sonae's consolidated turnover grew by 6.6% when compared to 1H17, amounting to €2,680 M, particularly impacted by its retail businesses. Consolidated EBITDA improved by 11.1%, reaching €154 M in 1H18, due to improved underlying EBITDA and results from equity method. The semester is also marked by a portfolio valuation, capital gains in investment management and a net income group share growth of 34.2% to €98 M.

Capex stood at €151 M in 1H18, increasing €30 M, mainly fuelled by a higher capex level in the food retail businesses linked to refurbishments, and M&A operations in the group's investment management business.  

Ângelo Paupério, Sonae Co-CEO, states: "The growth achieved in the second quarter allowed Sonae to end the first half of 2018 with a turnover increase of more than 6% over the same period last year, with positive contributions from all our business areas, particularly food retail which grew by 7.2%. The overall profitability also improved, with EBITDA reaching €154 M, 11.1% above the first semester of 2017.

"It was also possible to reduce the Group's net debt by an additional €95 M while increasing investment levels and continuing to grow by 5% the dividend paid to our shareholders. 

"The quarter was, however, marked by the results reached in terms of portfolio management, with relevant steps in the preparation of the potential IPO of Sonae MC, with the partial sale of a stake in Outsystems (indirectly owned by Sonae IM) and particularly with the acquisition of an additional 20% stake of Sonae Sierra, an operation that contributed to a more balanced portfolio and to reinforce the group's international profile, which remains at the forefront of Sonae's strategic priorities." 

Sonae is a multinational group with solid roots and a constant drive towards progress and innovation, in any business, partnership, or geographic area, creating long-term economic and social value.

With a turnover of more than 5.5 billion euros (FY17), present in 90 countries and with a portfolio of over 40 brands, Sonae has leading positions in the fields of: food retail (Sonae MC); electronics retail (Worten); specialised retail (Sonae Sports & Fashion); retail real estate (Sonae RP); investment management in technology for retail, telecommunications, and cybersecurity (Sonae IM); financial services (Sonae FS); shopping centres (Sonae Sierra); and, telecommunications (NOS).