Sonae posts 223 million euros in profit in 2024 on turnover of almost 10 billion

Portuguese multinational conglomerateSonae made a profit of 223 million euros in 2024, down from 357 million the previous year, but 18% higher if the capital gain of €168 million from the sale of Iberian Sports Retail Group in 2023 is excluded.

In a statement sent on Thursday to the Portuguese Securities Market Commission (CMVM), Sonae highlights that the net profit attributable to shareholders reflects “the growth and improved performance of the businesses, the increase in financial costs and taxes, the investment in the expansion and internationalisation of the portfolio, the focus on digitalisation of the businesses and the continuous effort to achieve efficiency gains in order to offer the best value proposition to customers”.

In 2024, Sonae recorded a record consolidated turnover of 9.947 billion euros, a year-on-year increase of 18.4% “driven by the robust performance of the main businesses, as well as strategic moves in the portfolio, namely the acquisitions of Nordic pet care company Musti and online cosmetics retailer Druni”.

The group also said it had benefited from “the strengthening of the leadership positions of the main retail businesses and the increasing internationalisation of the business, boosted by organic growth and investment in new acquisitions”.

Underlying EBITDA (earnings before tax, interest, depreciation and amortisation) increased by 25.8% to 908 million euros, with Sonae highlighting “strong improvements in the operational profitability of the businesses and a solid contribution from recently acquired companies”.

“Results using the underlying equity method benefited from better results from NOS (+57% y.o.y.) and Sierra (+10% y.o.y.), reflecting their robust performances and sustained growth,” it details.

Consolidated EBITDA totalled 1.034 billion euros (+4.5% year-on-year), as the positive operating performance of the businesses and higher equity method results “more than offset” the absence of a contribution from sports retail operator Iberian Sports Retail Group (ISRG) following its sale in the last quarter of 2023.

On a like-for-like basis (excluding non-recurring items and ISRG’s contribution in 2023), EBITDA would have increased by 30% year-on-year in 2024.

Based on these results, Sonae will propose a dividend distribution of 0.5.921 cents per share or 5% more than in the previous year, corresponding to a dividend yield of 6.5% (based on the share price at the end of 2024) and a payout ratio of 52% of the consolidated net profit attributable to the group.

In today’s press release, Sonae also highlights the record consolidated investment of 1.589 billion in 2024, more than double the 665 million euros of the previous year, reflecting the acquisitions made (totalling 1.121 billion) and the expansion and digitalisation of the business.

Despite this investment and the payment of dividends totalling 154 million, the group reports ending 2024 with a consolidated debt of 1.6 billion euros.

Quoted in the statement, Sonae’s chief executive officer (CEO), Cláudia Azevedo, describes 2024 as ‘a memorable year’ for the company, in which “all businesses performed exceptionally well in a highly competitive context”.

The CEO mentions Modelo-Continente’s food retail segment sales growth of 7%, “driven by significant increases in volumes in all formats, in a low inflation environment”, Worten’s 8% increase in turnover and NOS’ “record operating and financial results”, which, using the equity method, reached 100 million in Sonae’s consolidated accounts, a year-on-year increase of 57%.

Sonae is a multinational business group headquartered in Maia in the district of Porto. It is present in 90 countries and operates in various sectors, including retail (food, electronics and fashion), property, media and telecoms, technology investment and financial services.

It is the largest private employer in Portugal, with a total of 48,222 employees.