Portugal's Sonae Q4 profit rises 46%, sees challenges ahead
17/03/2022 09:16
By Sergio Goncalves
LISBON, March 17 (Reuters) - Sonae YSO.LS , which owns
Portugal's largest food retailer, said on Thursday fouth-quarter
net profit rose 46% after most coronavirus restrictions were
lifted, though challenges linked to rising inflation and war in
Ukraine loom.
Sonae, whose businesses range from food retail to telecoms,
earned 109 million euros ($120.40 million) from October to
December, up from 75 million euros a year earlier, when the
pandemic still restricted private consumption.
Consolidated sales rose 6.7% to 2 billion euros in the
fourth quarter, it said in a statement.
As the effects of the pandemic wane, the company faces the
consequences on the Portuguese economy of the war in Ukraine,
which include inflation as a result of shortages of food
commodities.
Sales from its food retail unit Sonae MC, which runs around
300 hypermarkets and large supermarkets under the Continente
brand, grew by 8.9% to 1.5 billion euros, though the war in
Ukraine and rising energy costs "could put pressure on its
businesses," the statement said.
Chief Executive Claudia Azevedo said that in 2022 the
uncertainty and challenges "will not be lower" than those of the
last two years of the pandemic, but Sonae has a "very stable
financial situation, which allows it to explore new and
attractive opportunities".
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) increased by 7.9% to 208 million euros in
the quarter, while its EBITDA margin remained stable at around
10.3%.
For the whole of 2021, Sonae's profit almost quadrupled to
268 million euros, while EBITDA increased 18% to 738 million
euros.
Its debt was cut almost in half to 563 million euros in
2021, while operating capex increased by 5.8% to 279 million
euros, it said.
Portuguese rival Jeronimo Martins JMT.LS reported a 49%
increase in fourth-quarter net profit last week. urn:newsml:reuters.com:*:nL5N2VD1TN
($1 = 0.9053 euros)
(Reporting by Sergio Goncalves; editing by Inti Landauro and
Barbara Lewis)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))