Sonae (SON) Q3 2024 earnings summary

Executive summary

• Consolidated revenues rose 15.4% year-over-year to €7.0 billion in 9M24, driven by retail growth, digital expansion, and new business integrations, including Druni, Musti, and the Druni-Arenal merger.

• EBITDA increased 22% to €706 million, with underlying EBITDA margin improving to 8.8% from 8.4% in 9M23.

• Net result (group share) increased to €149 million, up €14 million year-over-year, despite higher D&A and financing costs.

• E-commerce and digital enhancements were major growth drivers, with omnichannel integration supporting retail performance.

• Portfolio management reinforced international exposure, notably through Druni and Musti acquisitions, and the Druni-Arenal merger established market leadership in Iberian health, wellness, and beauty.

Financial highlights

• Turnover reached €7 billion in 9M24, up 15.4% year-over-year; 3Q24 turnover was €2.7 billion, up 22.4%.

• EBITDA rose 22% to €706 million, supported by underlying EBITDA and equity method results.

• Direct result increased by €34 million to €201 million; net result (group share) up 10.6% to €149 million.

• Net debt increased by €676 million, mainly due to M&A activity, standing at €1.8 billion as of 9M24.

• Operational cash flow over the last twelve months was €147 million, offsetting higher operational capex.

Outlook and guidance

• Management remains confident in maintaining the growth trajectory and exceeding goals for the remainder of the year.

• Growth platforms in pet care and health & wellness expected to benefit from further European consolidation.

• Continued focus on expanding market leadership in Iberia and the Nordics, leveraging strong resources and dedicated teams.