Nov 24, 2008. /Lesprom.com/. Portuguese conglomerate Sonae reported a 67% slump in January-September net profit to Euro 53 million, hit by rising financial costs as well as asset amortisation and depreciation.
Sonae 9-month net profit falls 67%
Nov 24, 2008. /Lesprom.com/. Portuguese conglomerate Sonae reported a 67% slump in January-September net profit to Euro 53 million, hit by rising financial costs as well as asset amortisation and depreciation, Reuters reported.
Costs generally increased after an expansion of its retail chain and telecommunications network. Sonae operates supermarket chain Modelo and Continente hupermarkets in Portugal.
Financial costs jumped 23% to Euro150 million, while depreciation and amortisation totalled Euro 202 million, a 21% rise from a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 24% to Euro 368 million. Still, Sonae's business turnover increased 22% to Euro 3.83 billion. Capital expenditure in the nine months edged up 3.5% to Euro 604 million. The group's net debt rose 31% to Euro 3.1 billion.
