Portuguese retailer Sonae MC, which operates the Continente banner, has posted turnover of €2.18 billion for the first half of its financial year, a 10% increase year-on-year.
The retailer said that this growth was underpinned by a strong like-for-like performance, of 3.9% in the first half overall and 6.7% in the second quarter, as well as increased volumes and continued expansion.
The group opened 30 new stores in the half-year period, including five Continente Bom Dia stores and one Continente Modelo outlet.
Performance was also boosted by the acquisition of Arenal Perfumerias, which was announced last September.
Underlying EBITDA at Sonae MC was €207 million, an increase of €26.4 million compared to the same period last year. Underlying EBITDA margin at the division was 9.5%, up from 9.1% in the previous year.
Group-Wide Growth
Sonae Group, which also includes electronics and fashion retail arms, as well as property and communications, saw turnover rise by 11% to €2.985 billion, while in the second quarter, turnover was up 13.1%, surpassing €1.5 billion.
The growing sales at the business reflect its underlying profitability, the group said, with underlying EBITDA rising by 24.4% to €243 million in the first half.
The level of investment increased by 25% to €189 million in the period, while the company's net debt was reduced by €131 million on a comparable basis.
The business also said that it created 1,200 new jobs over the past 12 months.
“Sonae had a very positive first half of the year, with strong growth, profitability improvements and important milestones in terms of portfolio management," commented Cláudia Azevedo, chief executive of Sonae.
"Consolidated turnover grew 11.0% y.o.y. to €2.985 billion with a particularly strong contribution from Sonae MC, solid growth at Sonae IM, and a better performance of Worten and Sonae Fashion in the second quarter. Non-consolidating businesses also posted very positive top line evolutions, especially MDS and ISRG, both with strong
double-digit growth. These results give us great comfort that the value propositions of our businesses are being truly appreciated by our customers."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
