Sonae records €75M loss H1 2020 because of pandemic
The company recorded losses of €75 million in the first half of the year, explained by the Covid-19 pandemic.
Sonae recorded losses of €75 million in the first half of the year, against profits of €38 million in the same period of 2019, explained exclusively by the Covid-19 pandemic, the group announced.
In a statement sent to the Portuguese Securities Market Commission (CMVM), Sonae states that the evolution of net profit is explained by “total accounting contingencies (‘non-cash’) of €76 million in the first quarter and a reduction in the valuation of Sonae Sierra’s portfolio in the second quarter, both directly related to Covid-19.”
Despite the pandemic, in the second quarter, the direct result was positive by six million euros.
Group turnover grew 6% to €3.136 billion in the period, “with growth in the second quarter of 5% to €1.584 billion euros”.
Sonae states that “sales growth was driven by the rapid implementation of strong operational measures and by the unprecedented performance of ‘online’ sales, allowing for market share gains in most businesses, with a strong contribution from Sonae MC [food retail]”.
Earnings before taxes, interest, depreciation and amortization (EBITDA) fell 11.7% to €256 million, “which in the second quarter was €128 million, reflecting a lower equity method result of Sonae Sierra and ISRG (the sports retailer)”.
