Sonae: International Growth and Diversification in 2024
- Administrateur
- Oct 28, 2024
- 2 min read
Sonae, a diversified Portuguese conglomerate, has steadily developed an international presence across strategic sectors like food retail, consumer goods, telecommunications, and financial services. In 2024, the company accelerated its growth through investments in high-potential sectors, including pet care and health. These initiatives have enabled Sonae to solidify its leadership and extend its reach into international markets.
Financial Performance in H1 2024
In the first half of 2024, Sonae achieved a 11.4% growth, with consolidated revenue reaching €4.3 billion. This growth was primarily driven by MC, Sonae’s food retail division, and Worten, its electronics retail brand, both reinforcing their leadership in Portugal. The integration of Musti, a Scandinavian leader in pet care, also significantly contributed to overall growth. Sonae reported an EBITDA of €410 million, an 18% increase from 2023, while net income rose to €75 million, up by 14% year-over-year. This success reflects effective cost management and a strengthened diversified portfolio, with NOS, a leading Portuguese telecommunications provider, contributing positively.
Diversification Strategy and International Expansion
In 2024, Sonae pursued an international expansion strategy targeting high-growth sectors and enhancing its business portfolio. The acquisition of an 81% stake in Musti marked a significant entry into the Nordic pet care market, with a total investment of €700 million. Additionally, the merger of Arenal and Druni established a new market leader in the Iberian health, wellness, and beauty sector, further expanding Sonae’s footprint in Spain and Portugal.
The company also advanced its food innovation initiatives with a majority acquisition of BCF Life Sciences, a French company specializing in natural ingredients. This strategic acquisition positions Sonae well within the bio-ingredients sector, aligning with the rising demand for sustainable and eco-friendly products across Europe.
Sustainability and Asset Management Initiatives
Sonae’s commitment to sustainability has led to securing €2.4 billion in green and ESG-linked financing, representing around 90% of its medium- and long-term credit facilities. These financing efforts, structured as either "Green" loans or indexed to ESG indicators, allow Sonae to align with sustainable development goals, enhancing its environmental impact efforts. Moreover, the company invested €16.5 million in community support during H1 2024, emphasizing social responsibility through food donations and educational initiatives, including the PRO_MOV program. This initiative partners with the Portuguese government and local companies to provide reskilling opportunities for the workforce, addressing the evolving demands of the job market.
Sonae continues to modernize its processes to lower its carbon footprint and improve energy efficiency within its operations. The company’s corporate social responsibility initiatives include substantial investments in workforce training and sustainability-focused community support, reinforcing its commitment to responsible growth.
Conclusion
With a proactive diversification strategy and substantial investments in emerging sectors, Sonae achieved robust growth in 2024 while advancing its sustainability commitments. The expansion into health, wellness, and pet care, coupled with responsible asset management, positions Sonae as a key player in emerging markets while maintaining a high standard of social responsibility.
You will find in the attachment to this article the company’s presentation file.
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