Sonae Celebrates Record Achievements with Sustainable Growth

Sonae Reports Record Financial Achievements

Sonae, a leading multinational group based in Portugal and listed on Euronext Lisbon under the ticker symbol SON, recently announced its remarkable financial results for the year 2024. The company achieved record revenue of €9.95 billion, marking an impressive 18% increase from the previous year. This substantial growth is attributed to the company's strengthened market position in retail as well as ongoing organic growth and strategic acquisitions.

Significant Increases in EBITDA and Shareholder Profit

In addition to impressive sales figures, Sonae reported a robust EBITDA that has surpassed €1 billion. Furthermore, net profit attributable to shareholders rose by 18%, amounting to €223 million on a comparable basis. Sonae also invested a historic €1.589 billion in strategic acquisitions and organic expansion, more than doubling its investment from the previous year.

CEO Insights and Future Outlook

Cláudia Azevedo, the CEO of Sonae, expressed her excitement about the company’s achievements in 2024. She remarked, "This past year was fantastic for Sonae, and I truly believe we are laying the groundwork for even greater success in the future. Expanding our portfolio and solidifying our core businesses led us to reach two significant milestones: hitting sales close to €10 billion and achieving EBITDA surpassing the €1 billion mark. Our investments this year were strategically aligned to create substantial value, including enhancing our digital capabilities and executing key portfolio changes."

Commitment to Sustainability and Social Responsibility

Sonae remains firmly committed to sustainable growth and generating long-term value for its stakeholders. In 2024, an impressive 86% of the company’s long-term financing was linked to sustainable, green, or ESG performance criteria, reflecting a strong commitment to responsible business practices. Additionally, operational CO₂ emissions decreased by 19% compared to 2022, and recyclable plastic packaging for private label products reached 90%.

Community Investments and Diversity Initiatives

Community support initiatives have also flourished, with Sonae investing €34 million in various projects focused on food donations and education. The company prioritizes diversity and currently has women filling 41% of its leadership roles, highlighting its commitment to inclusivity and equal opportunities in the workplace.

Proposed Dividend and Financial Health

In a bid to reward its shareholders, Sonae has proposed a dividend of 5.921 euro cents per share, offering a 6.5% dividend yield and a payout ratio of 52% based on net income attributable to the group. This reflects the company’s strong financial health and dedication to returning value to its investors.

Overview of Sonae’s Business Operations

The Sonae group consists of several key business segments, including:

• Leading food retail chain in Portugal, operating over 1,000 stores and boasting 4.5 million active loyalty card members.
• Largest health, wellness, and beauty retail operator in the Iberian Peninsula with more than 800 stores, generating annual revenues of €1.5 billion.
• Portugal’s top electronics retailer, expanding its footprint across Europe through a growing technology repair service network.
• International real estate expert, co-managing Latin America’s largest shopping center operator.
• Second-largest telecommunications provider in Portugal, spearheading the country's 5G deployment.
• Investing in technology with a high-tech portfolio valued at €323 million.

As a publicly listed company on Euronext Lisbon, Sonae employs over 57,000 individuals and has a rich history spanning six decades, characterized by responsible growth. The company's achievements have been recognized through its inclusion in the S&P Global Sustainability Yearbook, robust CDP ratings, and its listing in the Bloomberg Gender-Equality Index.

Frequently Asked Questions

What are Sonae's key financial highlights for 2024?

Sonae reported revenue of €9.95 billion, an 18% increase from the previous year, along with EBITDA surpassing €1 billion and a net profit of €223 million.

How is Sonae demonstrating its commitment to sustainability?

In 2024, 86% of Sonae's long-term financing was linked to sustainable practices, and the company achieved a 19% reduction in CO₂ emissions.

What initiatives does Sonae support in its communities?

Sonae invested €34 million in projects focusing on food donations and education in various communities.

What is Sonae's approach to diversity?

The company prioritizes diversity and currently has women in 41% of its leadership roles.

What is Sonae's proposed dividend for shareholders?

Sonae has proposed a dividend of 5.921 euro cents per share, reflecting a 6.5% yield and a payout ratio of 52% of its net income.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

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