Portugal's Sonae Q3 net profit falls on record energy, transport costs
10/11/2022 08:30
By Sergio Goncalves
LISBON, Nov 10 (Reuters) - Sonae YSO.LS , which owns
Portugal's largest food retailer, said on Thursday third-quarter
net profit fell 4.2%, despite a solid increase in sales, as
record energy and transport costs dented its margins.
With businesses ranging from food retail to telecoms, Sonae
earned 92 million euros ($92.13 million) from July to September,
down from 96 million a year earlier.
Net income at its food retail unit Sonae MC, which runs
about 300 hypermarkets and large supermarkets, dropped 41% to 61
million euros in the quarter, even though sales rose 16%, as it
focused on keeping prices low to mitigate the impact of
inflation on families, it said in a statement.
Consolidated sales rose 15% to 2.04 billion euros in the
third quarter.
Consolidated earnings before interest, taxes, depreciation
and amortization (EBITDA) fell 5.4% to 224 million euros in the
quarter, and the EBITDA margin fell by 2.4 percentage points to
11%.
"Profit margins were naturally depressed, driven by record
energy and transport costs, higher supplier prices and by
customer migration movements to low-end and low-price products,"
said Chief Executive Claudia Azevedo.
"Nevertheless, consolidated results showed a strong level of
resilience, and we continue to have a very solid financial
position."
Net debt increased year-on-year by 164 million euros to 1
billion euros by September and the company said it had more than
1 billion euros in cash and unused credit facilities in its
vaults. It is fully financed until early 2024 at a cost of about
1%.
Portuguese rival Jeronimo Martins JMT.LS reported an
increase of 14% in third-quarter net profit two weeks ago.
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(Reporting by Sergio Goncalves; Editing by Inti Landauro and
Clarence Fernandez)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))