Portugal's Sonae, which owns the food retail chain Continente, has reported consolidated turnover growth of 11%, to €4.3 billion, in the first half of its financial year.
Sonae attributed this growth to the good performance of its food retail arm MC and electronics chain Worten, as well as the integration of pet product retailer, Musti.
Consolidated EBITDA increased 18%, to €410 million, reflecting investment in portfolio development and solid performance in the food retail and telecommunications businesses, the company added.
Net profit attributable to shareholders grew 14% year on year amounting to €75 million.
Food Retail Business
Sonae's food retail arm, MC reported growth in market share and year-on-year turnover growth of 7.8%, to €3.3 billion, in a competitive environment.
The business unit's growth was driven by the improved performance of the food segment and the health, wellness and beauty (SBB) segment.
Like-for-like turnover growth in the food segment exceeded 5% in the first half, with total turnover increasing 7.6% year-on-year.
The SBB segment delivered double-digit like-for-like growth of 10.7%, driven by Wells and Arenal.
Underlying EBITDA at MC increased by €26 million, amounting to €305 million in the first half.
It opened 15 stores in the second quarter, taking the total number of store openings to 43 in the first half, including 10 new Continente Bom Dia proximity stores.
'MC Reinforced Leadership Position'
Claudia Azevedo, CEO of Sonae, commented, "During the first six months of 2024, our core businesses continued to deliver remarkable performances. MC reinforced its leadership position in the demanding Portuguese food retail market, demonstrating unsurpassed customer focus and strong execution capabilities, while simultaneously driving growth in the health, beauty and wellness segment.
"Worten successfully reinforced its market share in the electronics retail sector in Portugal, delivering accelerated growth in its services and e-commerce business, despite the high promotional intensity in the market."
Outlook
Sonae is optimistic about the second half of the financial year and is confident in its ability to drive innovation and growth.
Azevedo added, "We will continue to support our people and our businesses, ensuring they have the resources they need to improve their current performance while investing in the future to ensure long-term value creation for all our stakeholders."
