Sonae SGPS : MC reaches record quarterly sales surpassing one billion euros

Sonae food retail area posts the best quarter ever in turnover

Sonae food retail area reached a new record in quarterly sales by exceeding one billion euros in turnover in the last quarter of 2016. Sonae MC totalled 1,002 million euros in turnover over the last three months of the year, 61 million euros more or 6.6% than in 2015.

Luis Moutinho, CEO of Sonae MC, states, 'Sonae MC's performance in 4Q16 demonstrates the success of the adopted strategy, which translated into a consolidated market leadership by registering a y.o.y. growth of 6.6%. This evolution reflects a 2.1% Lfl sales increase and an improved performance of the Portuguese market, as well as the expansion of Continente Bom Dia urban stores and the continued improvement of the value proposition and price perception.'

In 2016, Sonae MC benefited from the expansion of its store network, namely the Continente Bom Dia and Meu Super convenience formats, but also from the implementation of measures seeking to strengthen Continente's value proposition. These measures allowed to improve price perception, both through innovative communication campaigns and more effective discounts. As a result, in October, Sonae MC saw its price leadership recognised by DECO, the Portuguese Consumers Association, thus strengthening a leadership already revealed in June's study. At the same time, Sonae MC remained focused on developing a truly competitive perishables offer, with positive results.

During the last quarter of 2016, Sonae MC also took important steps towards providing consumers with a broad and democratic access to a healthy lifestyle. Sonae's food retail area reached an agreement to acquire a 51% stake in 'Go Well', which operates under the 'Go Natural' brand in Portugal. Founded in 2004, 'Go Natural' is the pioneer and reference brand in the healthy catering service in Portugal, with 22 restaurants, most of which located in shopping centres. As part of the same strategy, Sonae MC also inaugurated the first supermarket fully specialised in healthy food, in Lisbon, offering solutions and products that contribute to improving consumers' health and quality of life.

Traditionally, the last quarter of the year is the most significant for retail sales, as consumption benefits from the Christmas effect. 'The results obtained in the last quarter are important for the upcoming months, as they confirm we have the adequate strategy and resources to reach our objectives,' concludes Luís Moutinho.