Sonae justified the decrease of profits with the "effort to stand by families by absorbing part of the inflation".
Portuguese conglomerate, Sonae, made total profits of €179 million in 2022, 17% less than the previous year, a decrease justified by the company with the “effort to stand by families, absorbing part of the inflation”, it was announced on Thursday.
“Net profit attributable to shareholders, excluding non-recurring items, decreased 17% in 2022 to €179 million,” the company indicated in a statement. Sonae justified this decrease with the “effort to stand by families by absorbing part of the inflation”.
Added to this are the increase in costs and the indirect impact of -43 million euros, “following the impairments in the fashion retail business, devaluation of Sierra assets and the impact on the value of Bright Pixel assets”.
In the fourth quarter alone, Sonae had a negative recurring net profit of 10 million euros. Consolidated turnover reached €7.7 billion, a year-on-year gain of 10.9%. Aggregate online sales grew 17% in the period and exceeded €700 million.
Sonae’s underlying earnings before interest, taxes, depreciation and amortization (EBITDA) grew 6% to €635 million.
In 2022, the group invested €1 billion in Portugal. Consolidated investment, meanwhile, progressed 34% to €634 million. In terms of portfolio management activity, Sonae invested €277 million (+42%) and cashed €301 million with the sale of assets.
Consolidated net debt decreased to €540 million, “the lowest figure of this century”.
Last year, the company and its businesses created over 1,200 jobs, with retail standing out, increasing its headcount to around 48,000.
The net value of Sonae’s portfolio amounted to €4 billion at the end of 2022, in line with the previous year.
By business area, food retail (MC) had a reduction in profitability, also penalised by inflation.
“In this demanding and challenging context, MC stood by families, adjusting its value proposition to meet its customers’ needs and investing in the expansion of its shop network in order to take its benefits to an increasing number of people,” it stressed.
Even so, “the investment made and the recognition of this effort to contain the impacts of customer inflation”, led to a turnover of €6 billion, a growth of 11.5%.
In the electronics segment, Worten had a turnover of €1.2 billion, up 5.4% on 2021. The turnover of Zeitreel, which operates in the fashion sector, rose 12% to €387 million, down from 2019 figures. Sierra, meanwhile, increased assets under management not related to retail activities to €1.3 billion, up €700 million.
In the year under review, Bright Pixel invested €48.7 million in its portfolio companies and in new companies.
NOS’ turnover increased 6.3% to €1.5 billion, while net income, excluding capital gains from the disposal of towers, stood at €138 million, down 4% on 2021.
With regard to sports retail, between August and October, ISRG’s sales grew by 8.6% compared to the previous year, and in financial services, the Universo card surpassed the barrier of one million users.
In view of these results, Sonae’s Board of Directors will propose the payment of a dividend of €0.0537 per share.
Quoted in the same statement, Sonae’s CEO, Cláudia Azevedo, noted that there are always “unexpected risks”, but expressed her confidence in the future.
“This year is already full of dynamic projects and initiatives, full of innovation and sustainability. We will continue to foster growth and work together to create a better tomorrow for all”, she said.