Sonae profits rise 45.6% to €268 million in 2021, the highest in eight years

Sonae’s profits increased to €268 million in 2021, a growth of 45.6% compared to the previous year. This is the highest value of the last eight years. The consolidated turnover of the company led by Cláudia Azevedo increased 5.3% and reached a record value, surpassing €7 billion.

MC (subsidiary of food retail – Continente) and Worten contributed most to these results, “which again recorded very positive operational performances and reinforced their leadership positions,” says the company in a statement sent to the Securities and Exchange Commission (CMVM).

Sonae proposes a dividend of €0.0511 per share, 5% above the dividend distributed in 2020, justifying that “it corresponds to a dividend yield of 5.1%, based on the closing price of December 31 2021 (which stood at €1.003), and a payout ratio of 38% of consolidated direct income.”

Sonae ended the year with €4 billion of net portfolio value (NAV), 1.2% above the value at the end of the third quarter and 4.5% above the value at the end of 2020. Shareholder return, for its part, reached 61% in 2021, “with a strong share price performance of over 50%, in a year marked by uncertainty and volatility in capital markets.”

Investments totalled €474 million last year, with operating capex growing 5.8% to €279 million. In the portfolio management activity, €195 million were invested, which allowed a cash inflow of 663 million with the disposal of assets, namely with the sale of MC’s minority stake.

“In summary, Sonae’s free cash flow (FCF) (before dividend payment) in 2021 stood at €681 million, which, after dividend payment (in May 2021) led to a reduction of more than €500 million in consolidated net debt, to €563 million,” reads the statement.

Aggregate online sales had a 33% year-on-year increase and reached €640 million, which, according to Sonae, proves “the success of the group’s digitalisation journey”.

As for EBITDA, the underlying reached €603 million and the consolidated rose 18.4% year-on-year to €738 million. These are figures that translate the “positive operational performance, together with a recovery of the businesses consolidated by the equity method and the significant capital gains from the portfolio management activity,” the largest Portuguese private group pointed out.

Cláudia Azevedo underlined the “great progress” achieved despite pandemic constraints. “2021 was a remarkable year for Sonae. A year in which we thrived under very challenging circumstances. Still facing severe restrictions caused by the pandemic and operating under extremely competitive environments, we continued to strengthen market shares across our portfolio of leading businesses. We did this by excelling in our dedication and attention to detail, by innovating the way we serve our customers, by boosting digitalisation across the group and, above all, by working together with a renewed sense of energy and ambition,” reacted Sonae’s CEO, Cláudia Azevedo, in a message accompanying the statement sent to the CMVM. The manager also highlights progress on sustainability targets and deleveraging.

“Collectively, we invested more than €1 billion throughout the year to improve store networks, revamp digital touchpoints, future-proof logistical facilities, ensure the best next generation digital networks, and expand our portfolio of companies in new growth areas,” she also describes.

“2022 will bring no less uncertainty and challenge than the last couple of years. But more than ever, I am confident that we are well prepared for the future. We have very strong companies with leading positions, managed by top-quality people. We also have a very stable financial position, enabling us to act on attractive opportunities that come our way,” the Sonae’s CEO explains.