Sonae (SON) Q1 2025 earnings summary

Executive summary

• Consolidated turnover rose 22.7% year-over-year to €2.6 billion, driven by organic growth and acquisitions, notably Musti and Druni.

• EBITDA increased 39% year-over-year to €250 million, with margin improving to 9.8%.

• Net result group share surged 77% year-over-year to €43 million, reflecting improved operational performance.

• All business segments achieved growth and increased market share, supported by strategic acquisitions and successful integrations.

• Operational resilience was demonstrated during an unexpected Iberian Peninsula blackout.

Financial highlights

• MC revenue up 22.5% to €2 billion; pro forma growth 8% year-on-year with Druni; UEBITDA margin at 9.5%.

• Worten turnover grew 4.2% to €323 million; e-commerce sales up 19% and now 19% of total; UEBITDA margin at 3.8%.

• Musti net sales up 11.8% to €120 million; like-for-like growth 1.2% (2.4% ex-leap year); UEBITDA margin at 10.6%.

• Sierra net result increased to €29 million; occupancy at 98%, NAV at €1.1 billion, up €40 million since end-2024.

• NOS revenue up 4.5% to €421 million; EBITDA up 4.3% to €192 million; recurrent net income up over 20%.

Outlook and guidance

• Deleveraging is a priority, with loan-to-value improving to 15.9% and expected to decrease steadily through 2025.

• No major acquisitions expected in the near term; focus on organic growth and bolt-on deals.

• Musti expects EBITDA margin to improve as consumer confidence and Pet City integration progress.

• Health and beauty segment not expected to return to double-digit like-for-like growth in 2025.

• Positive outlook maintained for core businesses, with continued focus on innovation, digitalization, and market leadership.