Portuguese retailer MC reported strong operational and financial performance in the third quarter of 2024, surpassing expectations despite intense competition.
Third-quarter turnover reached €2.10 billion (€5.38 billion year-to-date), driven by resilient store formats and the Druni acquisition, boosting MC’s position in the Iberian health, wellness, and beauty (HWB) segment.
Comparable turnover growth was 6.3% in the quarter and 7.3% year-to-date, indicating market share gains.
MC achieved 'solid' sales growth and increased volumes across all grocery formats, while its HWB segment continued its strong performance.
The company prioritised expansion, opening eight new grocery stores in Portugal and increasing its HWB presence to over 770 locations across Iberia in the third quarter.
In the food retail division, Continente further consolidated its market share in a very competitive market.
Quarterly Highlights
Despite inflationary pressures, uEBITDA rose to €225 million during the quarter (€530 million year-to-date).
While the Druni acquisition impacted free cash flow, excluding this, FCF remained positive and outperformed the previous year, reflecting strong cash generation from existing operations.
Financial leverage increased to 3.3x net debt to EBITDA due to the Druni transaction; however, on a pro forma basis, this reduces to 2.9x, indicating a healthy financial position.
Commenting on the results, CEO Cláudia Azevedo, stated, “Sonae continues to demonstrate robust growth across all group businesses. We have strengthened our competitive positions in key markets, accelerating our digital evolution, and making steady progress in our ESG commitments.
“Across all our retail businesses, e-commerce was a major driver of growth, supported by unique customer insights, enhanced digital interfaces, and an increasingly seamless integration between physical stores and online channels.”
