Portugal Sonae's first-quarter profit jumps on strong sales
18/05/2022 18:27
LISBON, May 18 (Reuters) - Sonae YSO.LS , the owner of
Portugal's largest food retailer, on Wednesday posted a
first-quarter net profit of 42 million euros ($44 million), up
from just 1 million a year ago, on the back of strong sales
after the lifting of most coronavirus restrictions.
The conglomerate, whose businesses range from retail to
telecoms, reported its best ever first quarter in sales, which
rose 5% to 1.7 billion euros. Sales at its food retail unit
Sonae MC reached 1.3 billion euros.
"These results were achieved in a very challenging
environment, marked by the Russian invasion of Ukraine," Chief
Executive Officer Claudia Azevedo said in a statement.
She added that "although Sonae is not directly and
materially exposed to these countries, our businesses have
already felt the indirect effects of the conflict, namely
through increased energy prices, general inflation and supply
chain constraints".
Food inflation clocked 5% in the quarter, Sonae said.
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) increased 17.2% to 149 million euros. The
EBITDA margin - an important measure of profitability - rose to
8.8% from 7.9% a year earlier.
Portuguese rival Jeronimo Martins JMT.LS reported three
weeks ago a 52% rise in quarterly profit. urn:newsml:reuters.com:*:nL5N2WI267
($1 = 0.9537 euros)
(Reporting by Patrícia Vicente Rua; Editing by Andrei Khalip)
((patricia.rua@thomsonreuters.com; +351 21 123 2775; Reuters
Messaging: patricia.rua.reuters.com@reuters.net))