Q1 2025 Sonae SGPS SA Earnings Call Transcript
Key Points
- Sonae SGPS SA (STU:YSON) reported a consolidated turnover growth of 22.7% to EUR2.6 billion, driven by strong organic growth and integration of newly acquired companies.
- The company's underlying EBITDA improved by 38% year-on-year, reaching EUR218 million, with total EBITDA up by 39% to EUR250 million.
- MC achieved a revenue increase of 22.5% to EUR2 billion, with an underlying EBITDA margin improvement of 90 basis points to 9.5%, supported by solid sales growth and efficiency measures.
- Worten sustained solid revenue growth with a 4.2% increase in turnover and a significant 19% year-on-year growth in e-commerce sales.
- Sierra's European shopping center portfolio maintained strong occupancy rates over 98% and collection rates, contributing to a net result increase to EUR29 million.
- Worten's underlying EBITDA margin decreased to 3.8% due to higher costs associated with strategic growth initiatives and a temporary increase in shrinkage.
- Musti's adjusted EBITDA margin decreased to 10.6% due to targeted price investments and the integration of PetCity, impacting profitability.
- The Health and Beauty segment is not expected to return to double-digit like-for-like growth in 2025, with the market slowing down after intense growth in previous years.
- Net debt before dividends increased by EUR279 million due to recent acquisitions, impacting the company's leverage.
- Energy costs and rising staff costs continue to pressure margins, with inflation on costs higher than inflation on the top line.
Good afternoon. We welcome you to Sonae First Quarter 2025 Results Conference Call. During the presentation hosted by Mr. Joao Dolores, Sonae CFO, all the participants will be in listen only mode. Q&A is available after the presentation (Operator Instructions) I now hand over the call to Mr. Joe Dolores. Please go ahead, sir.
Thank you. Good afternoon, everyone. And thanks for joining our results presentation for the first quarter of 2025. Besides myself and the Investor Relations team, we have in the call with us Cristina Novais from Bright Pixel; Fernando Van Zeller from MC; Paul (inaudible) from Worten; and Miguel Moreira from Sierra. As usual, I will start by giving you an overview of the results of each of our main businesses, and I will start with MC. In grocery, Continental further reinforced its leadership position in a very competitive setting in Portugal. Like for like reached 5% with strong volumes growth across all grocery formats and despite
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