Q1 2026 Sonae SGPS SA Earnings Call Transcript
Key Points
- Sonae SGPS SA (STU:YSON) reported strong top-line growth with consolidated turnover increasing by 7.1% year-on-year to EUR2.7 billion.
- The company achieved significant improvements in profitability, with underlying EBITDA growing 17% year-on-year and the EBITDA margin improving from 8.5% to 9.3%.
- MC, a key segment, reinforced its leadership in grocery and health and beauty, with turnover increasing by 8.7% year-on-year and an improved EBITDA margin from 9.5% to 10%.
- Worten showed robust sales momentum with turnover increasing by 8.9% year-on-year and a significant improvement in EBITDA margin from 3.8% to 5%.
- The company continued its deleveraging path, reducing net debt to EBITDA from 2.7 times to 2.4 times, and the group's loan to value decreased from 15.8% to 13%.
- The competitive environment in Portugal's grocery market has intensified, with competitors becoming more aggressive on price and promotions.
- Despite strong performance, the company anticipates a lower trend in margin improvement for the remainder of the year due to the positive impact of Easter in Q1.
- The company is not planning any share buybacks in the near future, maintaining its current stance on capital allocation.
- There is uncertainty regarding the impact of geopolitical conflicts and potential inflation acceleration on future performance.
- The company does not expect positive EBIT from Worten and Musti this year due to ongoing investments in growth initiatives.
Good afternoon, and welcome to Sonae's first-quarter 2026 results conference call. The call will be structured in two parts. First, a presentation by Sonae's CFO, Mr. João Dolores. And afterwards, there will be a Q&A session where you will be able to put your questions. (Operator Instructions)
I will now hand the call over to Mr. João Dolores, CFO. Sir, please go ahead.
Thank you. Good afternoon, everyone, and thank you for joining today's call, where we will cover Sonae's Q1 results for 2026. Besides myself and the Investor Relations team, we have with us Cristina Novais from Bright Pixel, Fernando van Zeller from MC, and Miguel Moreira from Sierra. Let's now begin with the highlights of the quarter, starting with MC. In the first quarter of 2026, MC once again reinforced its leadership positions across grocery in Portugal and health and beauty in Iberia.
In grocery, turnover increased by 8% year-on-year, supported by high single
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