Covid-19 affects Sonae Capital’s results. But revenues hit 100 million euros

  • ECO News
  • 14 May 2020

Sonae Capital's first quarter results were affected by the coronavirus crisis. Losses rose but, on the other hand, turnover tripled.

Sonae Capital was one of many companies to be affected by the coronavirus crisis. In the first three months of the year, the company had losses of 5.4 million euros, an increase of 6.5% compared to the same period last year, according to the report sent to the Portuguese Securities Market Commission (CMVM). However, revenues hit 100 million euros.

If between January and March of last year the losses were 5.07 million euros, in 2020 they were even higher: 5.4 million euros. This performance, says the company, was due to the crisis caused by the coronavirus. “the first quarter 2020 ended in a very particular context, which brought an unprecedented challenge for the Society, Governments, Companies or Individuals,” says CEO Miguel Gil Mata, quoted in the document.

Even so, in the same period, EBITDA increased by 6.2%, to 5.2 million euros, and consolidated turnover tripled to 101.9 million euros. Sonae Capital’s investment in the first quarter amounted to 7.6 million euros, with the progress made in the “Mangualde biomass-fired cogeneration project development (with an investment of 3.0 million euros) and the 1.4 million euros investment made in Fitness, essentially due to the expansion plan in course.”

In the energy sector, the company recorded an increase in turnover to 80.5 million euros, five times more than the 14 million for the same period. The company accelerated growth with the acquisition of Futura Energía Inversiones and has also planned to invest in the new biomass-fired cogeneration plant, scheduled for the second half of the year.

In the fitness field – where it has the Pump, Solinca and 1 ONE Club – Sonae Capital had “strong growth”. In the first quarter, turnover in this sector increased to 10.7 million euros, “boosted by the higher number of active members, which amounted to 105 thousand”. For the company, this was a “strong performance”, given that the activity was significantly impacted by the preventive suspension of the operation of all the clubs, which resulted in the loss of revenues associated with the monthly subscriptions.

In the hotel business, everything indicated that this was going to be a “positive year” until the confinement was decreed, says the company, in a statement. The hotel sector was affected in March, because of the “slowdown in tourist flow”, leading to the closure of the hotel units. As a result, turnover fell 23.8% to 2.3 million euros in the first quarter.

In the segment of Operations in Tróia, which aims to promote Tróia as a tourist and leisure destination, Miguel Gil Mata’s company saw its turnover fall 1.7% to 1.6 million euros. This includes the Atlantic Ferries river transportation, the Tróia Marina, a supermarket of Meu Super chain, the Roman Ruins and an Internship Centre related to the practice of football and a golf course.

“The results (…) are partially impacted by the pandemic, but we anticipate that the impact will be more severe in the second quarter, as it encompasses months of complete suspension. On the other hand, we are actively and carefully ensuring all the conditions for a prompt and safe reopening, both for our employees and our customers,” says CEO Miguel Gil Mata.