Sonae (SON) Q1 2026 earnings summary

Executive summary

• Achieved consolidated turnover growth of 7.1% year-on-year to €2.74bn, driven by strong performances in MC, Worten, and Musti, and despite the deconsolidation of MO and Zippy.

• Underlying EBITDA grew 17% year-on-year to €255m, with margin improving from 8.5% to 9.3%, reflecting strong operational execution.

• Net result attributable to shareholders increased 11% to €47m, supported by solid cash flow generation and continued deleveraging.

• Net asset value (NAV) rose 9% quarter-on-quarter to €5.5bn, up 20% year-on-year, with share price up 80% over the last 12 months.

• Continued strategic investments in artificial intelligence and operational efficiency, generating tangible gains.

Financial highlights

• Turnover reached €2.74bn in 1Q26, up from €2.55bn in 1Q25, with robust like-for-like sales and network expansion.

• Underlying EBITDA increased 16.9% to €255m; EBITDA margin improved to 10.4%.

• Net result group share was €47m, up from €43m in 1Q25.

• Consolidated net debt decreased by €163m to €1.7bn year-over-year, with loan-to-value reduced to 13.0%.

• Free cash flow generation of €257m in the last 12 months, with free cash flow before dividends paid improving from -€207m to €315m year-over-year.

Outlook and guidance

• Expectation to maintain or slightly increase margins in coming quarters, though Q1 margin benefited from Easter and may not be fully repeatable.

• Like-for-like growth in grocery expected to normalize from the exceptional 8% in Q1, with some deceleration seen in early Q2.

• Continued focus on deleveraging, organic investment, and selective bolt-on M&A; no transformational M&A or share buybacks planned in the near term.

• Management remains confident in portfolio strength and aims to narrow the share price discount to NAV.