Sonae - SGPS SA

ELI:SON

Strong quarter: Sonae said consolidated turnover rose 7.1% to EUR 2.7 billion, underlying EBITDA rose 17%, and net profit attributable to shareholders increased 11% to EUR 47 million.

MC led growth: The grocery and health and beauty businesses kept gaining market share, with MC turnover up 8.7% and its EBITDA margin improving to 10%.

Worten and Musti improved: Worten posted 8.9% revenue growth and a margin jump to 5%, while Musti grew sales 16% and held adjusted EBITDA above 10% despite heavy investment.

Deleveraging continued: Net debt to EBITDA at MC fell to 2.4x, consolidated net financial debt dropped EUR 163 million, and Sonae said it remains on a steady deleveraging path.

Capital priorities: Management said it is not planning share buybacks, sees no near-term transformational M&A, and will keep focusing on organic investment, bolt-ons, dividends, and lower leverage.

Food retail momentum: Management said grocery like-for-like growth was 8% in Q1, but expects a softer pace in Q2 so far amid a more competitive market and more cautious consumer behavior.