Sonae SGPS Results, 9M 2017

Page created: Thursday, 16 November 2017 16:12GMT

Press Release:  16 November 2017 - 16 Page(s)

• Turnover kept the positive trend of the previous quarters,

increasing in all businesses in the first nine months of 2017;
• Underlying EBITDA increased in all businesses, apart from
Sonae IM.

From a statutory perspective, Sonae consolidated turnover
totalled €4,115 M, growing 6.9% in comparison to 9M16, fuelled
by the performance of all businesses: Sonae Retail, Sonae FS and
Sonae IM.

Sonae underlying EBITDA reached €221 M, more €19 M when
compared with 9M16. All businesses contributed positively
except Sonae IM, which decreased y.o.y.. Sonae underlying
EBITDA margin increased 10 bps y.o.y., to 5.4%.

Sonae EBITDA amounted to €273 M in 9M17, -8.1% versus
9M16. Despite the higher underlying EBITDA and the equity
method results, the y.o.y. performance was impacted by the
non-recurrent items registered last year (benefiting mostly from
the capital gains arising from the sale and leaseback transactions
completed by Sonae RP in 2016). On a quarterly basis, EBITDA
increased €21 M when compared to 3Q16, to €130 M,
corresponding to an EBITDA margin of 8.6%.
Sonae net financial activity improved by €8 M, registering a
negative €28 M in 9M17, reflecting the reduction in the cost of
outstanding debt. The average interest rate of outstanding debt
was 1.3% in 3Q17, a value that compares with 1.4% in 3Q16. It
should be noted that Sonae financial results exclude Sonae Sierra
and NOS businesses.

Sonae direct results amounted to €102 M, reducing 14.4% when
compared to the same period of last year, mainly explained by
non-recurrent items and marginally by D&A, that were partially
compensated by the higher underlying EBITDA, equity method
results and the less negative net financial activity. Sonae indirect
resultsstood at €37 M, increasing by €16 M y.o.y. as result of the
positive effect of the valuation of Sierra’s assets, as well as from
a capital gain driven by the deconsolidation of MDS (already
reported in 1H17).

Financial leverage ratio decreased 210 bps in comparison with
9M16, to 36.7%. Sonae net debt decreased €30 M y.o.y,
amounting to €1,217 M in 9M17.

Original title:  Sonae turnover continued to grow, reaching €4,115 M in 9M17, +6.9% y.o.y.

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