Sonae MC, which operates the Continente retail brand in Portugal, posted a 0.8-per-cent sales increase in Q1 2015, according to its latest set of results.
The supermarket division of the Sonae Group posted turnover of €793 million, however, like-for-like sales were down 1.2 per cent. Underlying EBITDA was down 5.1 per cent.
"Sonae MC’s turnover increased in line with the food sector during a period marked by fierce competition, which has now extended to all significant operators," said Ângelo Paupério, co-CEO of Sonae. "As always, Continente continues to uphold its commitment to ensure the best prices of the market."
Commenting on its performance, Barclays European Retail Equity Research said, "Looking at the food retail division, despite the easing deflationary pressure, the Portuguese food retail market still remains fiercely competitive, as evidenced by the high level of promotions carried out at its Continente banner in the quarter. Its focus on price leadership has inevitably weighed on Sonae MC’s EBITDA margin, which contracted by 20bps yoy, albeit a relatively easier comp."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.
