Sonae Aktie

Good afternoon, and welcome to Sonae's First Quarter 2026 Results Conference Call. The call will be structured in two parts. First, a presentation by Sonae's CFO, Mr. Joao Dolores. And afterwards, there will be a Q&A session where you will be able to put your questions. [Operator Instructions]

I will now hand the call over to Mr. Joao Dolores, CFO. Sir, please go ahead.

Thank you. Good afternoon, everyone, and thank you for joining today's call where we will cover Sonae's Q1 results for 2026. Besides myself and the Investor Relations team, we have with us Cristina Novais from Bright Pixel, Fernando Van Zeller from MC and Miguel Moreira from Sierra. Let's now begin with the highlights of the quarter, starting with MC.

In the first quarter of 2026, MC once again reinforced its leadership positions across grocery in Portugal and Health and beauty in Iberia. In grocery, turnover increased by 8% year-on-year, supported by high single-digit like-for-like growth across all store formats. The sales performance was underpinned by a solid growth in volumes having resulted in yet another increase in market share and a wider gap to the second player in the market.

At the same time, profitability continued to improve. The underlying EBITDA margin increased from 9% to 9.5% benefiting from higher operating leverage and continued efficiency gains across the business. In Health and Beauty, turnover increased by 11.5% year-on-year supported by solid like-for-like growth and continued expansion of the store network, both in Portugal and in Spain.

The integration and operational alignment across the different banners continues to progress well and this has enabled additional synergies and higher efficiency improvements. As a result, the underlying EBITDA margin improved from 11.6% to 12% in the quarter. Overall, MC continues to deliver strong top line growth while simultaneously improving profitability.

Turnover increased by 8.7% year-on-year, reaching EUR 2.1 billion in the quarter, while profitability continued to improve with the consolidated underlying EBITDA margin increasing from 9.5% to 10%. This strong operational performance continued to drive solid cash flow generation and a strong deleveraging path. Net debt to EBITDA reduced further from 2.7x to 2.4x, reinforcing MC's financial profile.

Moving to Worten. Worten delivered a very positive quarter in Q1, combining robust sales momentum with improved levels of profitability. Turnover increased by 8.9% year-on-year supported by a solid like-for-like growth of 7.6%. This performance was broad-based across categories and channels with strong momentum in core electronics and appliances alongside double-digit growth in services. Both the online and off-line channels contributed positively to growth, while the Worten app continues to gain relevance and strengthen customer engagement. The company's new loyalty scheme linked to the Continente ecosystem is also enabling higher benefits for consumers and increased levels of customer stickiness. Profitability improved significantly during the quarter. The underlying the margin increased from 3.8% last year to 5% this year, reflecting the stronger sales performance an improved category mix and reinforce operational discipline.

Regarding Musti. Musti mostly continue to scale its operations while simultaneously investing in some transformational initiatives to support growth. Sales increased by 16% year-on-year supported by a solid like-for-like growth of 3.9% and by the contribution of the recent acquisition of Zu, which represented EUR 8 million in revenue this quarter. Excluding this contribution, mostly would have grown 9% year-on-year. Gross margin improved to 44%, benefiting from the increasing share of owned and exclusive food brands in the total sales mix. The adjusted EBITDA margin remained above 10% despite the significant investments the company is undertaking in growth initiatives, scalability and integration capabilities. Pet care remains a structurally attractive category with strong long-term fundamentals and mostly continues to represent a key growth platform within Sonae's portfolio.

Moving on to Sierra now. Sierra sustained a solid operational performance during the quarter, which supported further NAV expansion. Across the European shopping center portfolio, tenant sales increased by 5.4% on a like-for-like basis with all shopping centers remaining close to full occupancy, while rent collection levels continue to be robust. At the same time, Sierra continues to expand its services and investment management activities, while progressing with several development projects. Overall, this strong operational performance supported NAV growth to EUR 1.2 billion, representing an increase of EUR 59 million year-on-year and EUR 32 million quarter-on-quarter.

In Cellphone Technology, NOS continued to deliver quite resilient operational and financial performance at the start of this year. Total revenues increased 2% year-on-year to EUR 460 million, driven by IT and cinema and audiovisuals which more than compensated for the slight decline in telecommunications revenues which were partially affected by severe weather-related impacts in specific regions of the country after the storms that the country faced at the beginning of this year. Free cash flow generation remained strong as a result of the improved profitability and lower CapEx levels. NOS contributed EUR 20 million to our equity method results in Sonae's consolidated accounts in the first quarter. Bright Pixel maintain a disciplined investment approach, balancing selective capital allocation with evaluation of diversified investment opportunities. This was a relatively uneventful quarter as our active portfolio reached an NAV of EUR 321 million with cash invested amounting to EUR 242 million, implying a potential cash-on-cash multiple of 1.3x.

Moving on to consolidated figures. Overall, our consolidated turnover grew 7.1% year-on-year to EUR 2.7 billion driven by strong performances of our retail businesses, which more than offset the deconsolidation of MO and Zippy fashion banners after the divestment process that we executed last year. On a comparable basis, excluding the impact of this M&A activity, total revenues would have grown 9% year-on-year. Underlying EBITDA grew 17% year-on-year, mainly reflecting the strong performance of MC but also the positive contributions from Worten and Musti. The underlying EBITDA margin improved from 8.5% in Q1 '25 to 9.3% this year, representing an increase of 78 basis points. Consolidated EBITDA increased by 14% year-on-year, supported by the solid evolution at the underlying EBITDA. All in all, our net results attributable to Sonae's shareholders grew 11% to EUR 47 million.

The strong operational performance generated EUR 257 million of free cash flow in the last 12 months. And this enables further progress in our deleveraging path with consolidated net financial debt decreasing EUR 163 million. The group's loan to value reduced from 15.8% at the end of Q1 of 2025 to 13% at the end of March of 2026 as we continue to progress on this deleveraging trend.

Our net asset value, notably grew 9% this quarter to EUR 5.5 billion. This performance was driven by the consistent positive performance of our retail businesses, particularly MC, and by the appreciation of a large share price in this quarter. On an annual basis, in the last 12 months, Sonae's net asset value increased 20% year-on-year. On a per share basis, NAV reached EUR 2.85 per share. As you know, our share price has been on an impressive run, having increased 80% in the last 12 months. Nevertheless, the room for further appreciation is still very significant. So we currently have an implicit 50% upside potential to reach the NAV level, and we remain fully committed to capture this potential.

This is all for now. Thank you very much. You can open the session to Q&A.

[Operator Instructions] The next question comes from Juan Rios Peris from Santander.

Good afternoon, everyone, and congratulations on the strong results. So I have three more strategic questions, let's say, on my side. And the first one, following last year's divestment in the fashion division, including the sale of MO and Zippy, what are the medium-term plans for Salsa? Then the second one regarding Musti, following acquisitions of Pet City and Zu last year and what are the next steps in terms of expansion plans for the business? And finally the last one, sorry, last year, you mentioned that you were not planning to do any share buybacks in the short term. I just wanted to know if that's still the case. Thank you.

Very good. Thank you, Juan, for the questions. So starting with the one-off regarding fashion. So as we've said before, fashion retail is not a strategic sector for us to invest in going into the future. And so we decided to divest from MO and Zippy, as we pointed out, last year. Regarding Salsa, Salsa is -- has been improving its performance throughout the last few years. We have no urgency to find the market solution for Salsa so that the current plan is to continue to support the business to continue to generate value and to continue to improve on its performance both in terms of growth, in terms of profitability and then we will consider different options in the future. But we have -- it's -- for us, it's clear that it's not a strategic sector for us to continue to deploy capital in the next few years.

Regarding Musti, it's true that the company has done a couple of acquisitions in Pet City and Zu as you pointed out. and that positions the company well to continue to grow in its existing geographies. And so the current priority is to scale growth and continue to gain market share, particularly in the Nordics, where we still have a huge potential to continue to grow and then we have Norway but also in Sweden to catch up to the dominant market share that we have in Finland and then obviously, building on the acquisitions, growing in the Baltics and also in Portugal, where we have already been deploying a more aggressive expansion plan in the Portuguese market.

As we've always said, we see Musti as a platform for potential consolidation in the European pet care landscape. So we are looking at other potential moves that could extend the company's presence in Europe. And we have that strong belief that we have a value proposition and a management team that is able to scale its position, not only in its existing geographies but also in possible additional ones. Obviously, whenever we have something to announce in that regard, we will announce it to the market.

And in terms of share buybacks, the short answer to your question is yes, our position remains the same. And so we have no plans in the near future to expect to give any share buyback to the market.

The next question comes from Antonio Seladas from A|S Independent Research.

Three questions. First one regarding wealth and Arenal. I noticed that the number of stores have been more or less flat for the last two or three quarters, [ marginally ] is going faster. So this is kind of profile that we should could see or we will continue to see in the coming quarters or not, rather MC and grocery, I don't know if you can talk a little bit about the competitive environment and margin improvement. It includes consolidated figures in the 60 basis points year-on-year. Should we expect this kind of performance over the coming quarters? And finally, still rated with MC and grocery, if you can mention about Easter impact on your figures in the first quarter.

Thank you, Antonio. These are all for Fernando. Fernando, do you want to take them?

Yes, of course. Antonio, thank you very much for the questions. Regarding Easter, in terms of top line, what we have seen is an impact of less than 1%. There is also a little bit of an impact on the margin given the higher mix in this quarter versus last quarter of 2025 in the first quarter of 2025. But in general, I would say, a relatively limited impact apart from the less than 1% in like-for-like.

In terms of the margin improvement, a very good question. I think when we look at the trend of the first quarter, obviously, it was quite positive in grocery with an increase of 0.5 percentage points. I would say two main components of this. One is obviously, as Joao mentioned, the cost efficiency plan that we have seen. The second one is obviously the very strong like-for-like growth we have seen. And actually, the third one that is also relevant to point out, which is the Easter has a slight positive impact on the margin in Q1 2026 versus Q1 2025. And therefore, what we expect for the remaining of the year is a lower trend in terms of margin improvement because in this quarter, we have a positive impact -- a slight positive impact on Easter. That being said, if the sales continue at the same level they had in the first quarter of 2026, we expect to at least maintain the margin or slightly increase the margin in the remaining quarters.

And the third question around competitive environment in Portugal. Very good question. What we have seen in the beginning of Q1 2026 is, I would say, a more competitive environment. We have seen players, our competitors being more aggressive, both on price and promotion. And so we are seeing players who usually have or were less aggressive in terms of promotional campaigns to be much more aggressive campaigns on price campaigns with fuel, all types of campaigns. And so we are seeing a much more aggressive dynamic in both of these two dimensions.

And the final question around Wells and Arenal. So different realities. When you look in Spain, as you know, since the merger between Druni and Arenal, the main focus for us has been on the expansion of the Druni concepts. And our expectation is for this year to open around 30 stores for Druni, both in Spain as well as in Portugal. Arenal has a very strong footprint in the north of Spain and [indiscernible] specifically but our priority is to grow in other regions. And therefore, we don't expect to have, I would say, relevant openings this year and for Arenal, maybe one or two, but a much more limited expansion even at the regions where we want to focus the growth of new stores is in regions where Druni is present and has a dominant position versus Arenal. In terms of Wells, we have been opening stores and doing some extension of sales area in Wells. We have done it last year. We continue to do it this year. And so the goal is really to maintain the trend there and continue to open stores. But if you have any follow-up questions, very happy to take it.

The next question comes from Luis Colaco from JB Capital.

Thank you very much. Good afternoon, everyone, and thanks for the always detailed presentation. I think most of my questions have been asked regarding competitive environment and margin evolution. But maybe I'll ask a couple of questions more. Regarding the like-for-like. I think a few quarters ago, I asked you about the robust like-for-like performance. And at the time, I think you still guided for a low single-digit like-for-like, which continues to look quite conservative at this stage. Any update on this view? And maybe also in your answer, take into consideration all the comfort that we are seeing in Iraq and the potential acceleration in inflation. Also regarding the competitive environment and how you're seeing the beginning of the second quarter, you already said that you are seeing some more competitive environment more pricing investments from players. Are you also seeing any trading down from consumers? And my third question, maybe I missed this one. Can you provide us some color on the indirect income results and lower effective tax rate that you recorded in the first quarter?

Okay. Thank you, Luis. So I'll ask -- I'm assuming the first questions were around food retail, in particular. So I'll ask Fernando to [ cover the rest ] and then I'll cover the last.

Okay, sure. Thank you very much for your questions again. So in terms of the like-for-like in grocery in Q1 2026, as I was mentioned, obviously, we had a very robust performance, as you mentioned, of 8% like-for-like. This is comprised of 3% price increase, 3% volume increase and 2% mix increase, which is obviously also impacted by the Easter has positive impact on the mix in this quarter versus the first quarter of 2025. It's true that we have always mentioned that an 8% like-for-like growth in the mature market like the grocery market in Portugal is, I would say, abnormal and not what we should expect in the mid to long term. And when we look at backwards to a longer trend, we are seeing -- we have seen obviously 4%.

That being said, Portugal in terms of macroeconomics and mainly the two main variables of our business, the increase in disposable income as well as increase in population that has obviously impacted positively the sector and MC has also increased their market share in this period. And so we have even improved our like-for-like compared to the market. That being said, it's very difficult to predict what's going to happen over the next quarters of 2026.

In terms of the conflict and the question around inflation, we are not seeing yet impact on inflation. As I mentioned, we had an inflation -- a full inflation of around 3% in Q1 2026. What we are seeing is actually a slightly lower inflation, though still above 2% in the first weeks of Q2 2026. So we're not seeing a relevant impact on inflation from the conflict. But obviously, all this uncertainty creates some, I would say, a conservative approach from clients in terms of buying. And what we are seeing in Q2 2026 to date, we are seeing a slightly decrease in terms of like-for-like when we compare with Q1 2026. And so I think it's too early to say what's going to be the trend on like-for-like for the remaining of the year and especially because this conflict and the increase in fuel and other prices, not for deflation, but other prices that might impact with inflation in the next few quarters, they create a lot of uncertainty.

In terms of trading down per se, we are not seeing -- in the market as a whole, we are not seeing a trading down, meaning we're not seeing an increase in profit level. That being said, as you know, we have seen a significant increase in profit level over the last few years. And so we believe that for now on, and if things don't change very materially, there shouldn't be a significant increase in terms of profit level share and trading down, especially because Portugal is already a market where the private label has a huge penetration compared to other markets in Europe. I think I addressed all the questions, but if you have any other questions, please let me know.

Sorry, just a follow-up on what you said -- sorry for that. Regarding the second quarter, you said that you're seeing some deceleration of the like-for-like. Is this excluding the calendar effect or including?

Yes. So if we exclude the calendar effect and so if you compare apples to apples, we are seeing a slightly decrease on the first few weeks of -- on the first weeks of Q2 2026. It's also important to mention this is a period where there was a lot of extraordinary events, meaning the Easter, the weather was different. So there's a lot of bank holidays, as you know. And so I wouldn't pay a lot of attention or we don't have still a super, super firm view on where we will land in terms of like-for-like for Q2, but I think it's important to mention that we are seeing a slight deceleration in when you compare apples-to-apples on the like-to-like grocery compared to Q1.

Very good, Luis. On your last question, on indirect income, as you know, indirect income is the line in our P&L where we registered reevaluations of assets, namely at Sierra in our real estate division, but also at Bright Pixel and other assets that are revalued on an ongoing basis. This was a quite uneventful quarter in that regard. So we typically have some upwards and downwards valuations every quarter. This year, the net impact was the one that you saw, but I would say it's a relatively uneventful quarter. And it's mostly due to some prudence in the revaluation of a couple of assets that we have in the portfolio, but nothing material or that should have a reading beyond this quarter going forward.

In terms of the lower effective tax rate, our tax line is impacted by a number of things and mainly tax incentives and credits that we achieve annually, and these vary quarter-by-quarter. And in this quarter, in particular, we were able to account for a number of tax incentives related with innovation that we're able to soften a bit our tax line in the quarter. But I would not also anticipate that for the full year, you would have a much very different tax line that we had last year.

The next question comes from Antonio Seladas from A|S Independent Research.

Sorry, just a quick question on Sierra. The NAV increased by EUR 30 million, I think, quarter-on-quarter, EUR 20 million are probably explained or explained by the profit and loss account. The EUR 10 million is that we didn't understand. So maybe towards FX. I don't know if you can explain.

And thanks for the question. You are right, it's related to FX [indiscernible].

As you know, Antonio, we typically only revalue assets or we revise yields at Sierra based on external valuations twice a year at the end of June and at the end of December. So in this evolution that you see in the quarter, as Miguel pointed out was -- and as you pointed out, was basically due to the operating performance and also as well FX impacts.

If there are no more questions, I see some written questions on the chat, which we can also address. So one of them is touching on the liabilities from Julian, touching on the like-for-like in food retail. We achieved a [ sound ] 8% of which 3% was explained by volume growth. Can we break down the remaining 5% and what was the exact impact from Easter?

So the remaining 5%, and Fernando can elaborate more on this, but they were basically -- it's basically 3% inflation and 2% relative to mix effects or the difference in mix in our sales bucket. But Fernando could probably give us a bit more color on this.

No, I think you're obviously right. So what we have seen, as I mentioned, was an increase of volumes of around 3%, which was relatively aligned with what we have seen in 2025. And in terms of the mix, so the 2% was mainly driven by Easter and the different product mix we see in Easter versus other times of the year. So that's pretty much it. Around the impact on Easter, which is the remaining of the question, as I mentioned before, less than 1% on our like-for-like right?

And then there's a question on having deleverage to a point very similar to what we were before acquiring Musti and Druni, could M&A be on the table again in the near future, and if not, would we consider changing our remuneration policy.

So it's true that our deleveraging has happened as we foresaw a few quarters ago, and we basically addressed on these calls. It's true that we have a lower level of leverage today and this deleveraging path will continue. That being said, we are still pretty much focused on supporting our existing businesses and their investment needs which might also entail some bolt-on M&A. And so we keep -- as you know, we have a very programmatic stance on M&A, and we keep looking for possibilities to strengthen our value propositions, be it organic investment or through M&A. But I would still not expect any transformational M&A of the same size of Musti, for example, in the foreseeable future as our priority right now is really to make sure that we integrate the acquisitions that we did recently. The fact that we can and that we can provide our existing businesses with the right conditions to drive in their markets. So I would not expect any transformation on our end, although we will continue to be doing M&A as we did during 2025, acquiring a few companies that helped us reinforce our positions in each market.

I would also not expect a change in our remuneration policy. And so our remuneration policy has been quite stable throughout the period, and I would expect it to remain stable and with the same policy in the foreseeable future.

Let me see, we have a few more written questions from Bruno Silva. Grocery sales and like-for-like pretty much in line, what was the contribution from commercial area change?

I'm not sure if you're referring to expansion and the expansion of our store network. And if that's the case, if you look at food. Grocery sales alone, so isolating the complementary formats that we have around our food retail format, we basically grew 8% like-for-like and 8.8% in total, which means that we had an 80 basis points impact from expansion at the start of the year. And then if you take the full segment that we report in terms of food like-for-like is the same as year-on-year growth because we also include the ancillary concepts which in this case includes Zu last year, which we sold and deconsolidated from this year's figures at MC, right? So that's why the like-for-like is the same as the year-on-year contribution. We are still seeing an important impact on expansion this year.

What else. On Worten, should we expect positive EBIT this year from each business?

It's probably not yet this year because we are still investing in a few initiatives to support growth in coming years, but definitely an improvement versus [indiscernible].

Then another question. Franchising Grocery, if there is a deliberate decision to reduce it at the benefit of all stores. Fernando, do you want to take this one?

Sure, sir, thanks for the question. In terms of franchising, as you know, we have [indiscernible], which is a relevant -- a small part of our business in terms of grocery. The main strategy around the franchise business is really to occupy regions where we typically don't go with our own stores because they are typically smaller regions or smaller cities or smaller villas in Portugal. Our goal is obviously to continue to grow this business. That being said, obviously, the traditional market in Portugal, as you know, is reducing their share in the total market that obviously has some challenges for our franchisees. We continue to support them. The new super chain continues to be strong.

That being said. The modern retail continues to gain more and more share. And therefore, the expansion of the franchisees in this more traditional chain is more difficult and that being so, obviously, the pace of growth in terms of new stores in the franchisee business is smaller. And I would say that will continue to be so in the forecoming years and months because the trend that we're seeing in the traditional markets.

Okay. I do believe we have no further questions or at least the questions that I'm seeing on the chats were either already answered or are similar to ones that were answered before. So we have one additional one that just came in. Portugal Food Retail continued market share evolution in the first quarter and expectations for the remaining of the year. Fernando?.

Sure. So in the first quarter of 2026, we continue to increase our market share. Our market share grew about 0.3 percentage points in Q1 2026. I think that translates -- it shows well the continued good performance of the company both on top line but also on the bottom line as you saw. In terms of the remaining of the year, it's difficult to say. As I mentioned before, there is an increase in competitiveness in the market with a lot of players investing more in price, more in promotions. Expansion continues to be an important driver, particularly of the more recent entrants in the business. Obviously, we continued confidence that continue to reinforce their market share. But it's obviously, as you know, we have a very strong position in the market, and it's difficult to say where we'll land in the year, but the goal is obviously to continue to reinforce our market share in the following quarters.

Okay. So we have an additional question. Given our continued focus on portfolio optimization and recent inorganic growth, how should we think about capital allocation priority going forward between M&A, deleveraging and shareholder returns?

I think I covered part of this question before, but just to clarify, our deleveraging path will continue for sure because, as you know, we have a strong cash flow generation capacity in the portfolio. And so that means that even with the strong investments that we are doing to reinforce our value proposition in all the sectors in which we operate. We will, for sure, continue to see a deleveraging trend at the group level.

At the same time, we will continue to invest in our businesses. We are -- as you know, we have significant investment plans in all of our businesses, namely in MC in terms of expansion of our core network and continued refurbishment of our stores. We have important investments as well in Worten's digitization of this business. We have important investments in Sierra, whereby the company has been recycling capital to deploy to new projects that are highly value accretive for the company. And as I said before, we continue to see opportunities to expand both organically but also through bolt-on M&A. And so we will continue to be active in finding options as we did, for instance, last year in Sierra to scale the company's property management business in Germany and position the company as the #2 player in that market.

So we will continue to be on the lookout for potential bolt-on acquisitions and additions to the portfolio, while we maintain our shareholders' dividend policy as we have maintained it in the past. So I think we have given the ability that we have to generate cash in the portfolio, we have the ability to sustain all of these initiatives, continuing to invest organically and inorganically in our portfolio, continuing to remunerate our shareholders and at the same time, continuing to deleverage the group. And so this is a bit how we look into the future. It's possible that down the road, we will have a bit more firepower to look at additional sizable M&A, but that's not our short-term priority at this point in time.

So this being said, I think we covered all the questions in the chat and also all the questions that were posed in the call -- in the line. I would just like to leave you with a final remark to say that we're extremely happy with the performance of our portfolio because not only the businesses that have been performing extremely well in the past and most notably, MC, which continue to have -- to show that level of performance. We're seeing some of the other businesses actually improving tremendously on their growth and profitability such as Worten and Musti, for example. And we continue to see the strong resilience and performance of assets such as Sierra and also NOS even under very competitive backdrops in each of their markets. So we are quite happy with the start of this year, and we are also quite positive for what remains of this quarter. Obviously, it's a volatile geopolitical situation, but we have shown that in these times and in this context, we typically excel in the market, and that's what we will continue to try to do in the foreseeable future.

So thank you very much for listening in. Thank you very much for your questions, and talk to you soon when we announce our Q2 results in July. Bye-bye.

Hello, welcome to the Sonae 2025 Full Year and Q4 results. My name is Joao. I'll be cornered for today's event. [Operator Instructions] Sonae's CFO, João Dolores Dolores to begin for today's conference. Please go ahead, sir.

Hello, everyone, and thank you for joining us for Sonae's results presentation for 2020. Besides myself and the Investor Relations team, I have with us [indiscernible] -- we have with us avanafil, Mealor from Sierra for the loan of Uslar from MC and policy line from North.

I'll start with the main highlights from our portfolio management this year. In January, not agreed to acquire 100% of Claranet Portugal, with the aim of strengthening its ICT offering for the B2B segment, an important milestone in the company's strategy to extend its revenue streams. In May, we reached an agreement to sell more in Zippy, our fashion retail banners. That's how it's closing in July. This was a result of our active portfolio management, and this is a capital allocation approach during this year and NBO in which the management team basically got together with an investor to take over these brands.

Later in August, Sierra announced an agreement to acquire Unibail-Rodamco-Westfield's real estate management division in Germany. So this makes ensure that Sierra is now the second largest shopping center property manager for third parties in Germany, and this acquisition was completed in October.

In December, MC agreed to sell its pet retail business in Portugal Zu to Musti. And with this acquisition, mostly strengthens its position in the European market and expands to its seventh market. And also in December, Sierra agreed to sell its direct stake in [indiscernible], one of the largest shopping centers in Brazil. And this sale allows Sierra to streamline its presence in Brazil, exclusively to its investment in out. So quite an active year in terms of portfolio changes, which we believe are strong operations to enable us to face the future with more confidence.

By being part of the Sonae Group, our companies benefit from value-accretive opportunities to collaborate. And this is true in a number of different areas, namely a stronger consumer value propositions and also the unlocking of meaningful synergies across the portfolio. And 2025 is a powerful year for Sonae in that regard.

Just a few examples that you can see on this slide, [ Vartan Life ] was launched as [ Varco's ] loyalty program and with an integration with a broader continent loyalty card ecosystem, bringing clear benefits to consumers and a mutually beneficial partnership. As you recall, contingent card is the largest loyalty program in Portugal covering almost 5 million. So this provides immediate leverage to Worten's value proposition while also reinforcing the strength of the continent ecosystem.

In the same context, Universo, our partnership with Anite, we launched the universal card, Universal Plus brings additional benefits to consumers and also a bigger -- a wider integration with the Sonae ecosystem, namely with MC and Barton.

At the end of last year, continuing to announce together with Cal launched Covina. Covina is the largest discount ecosystem in Portugal. It may be cross-company discounts and further strengthening the value proposition of our businesses.

And we have, as you know, brought Musti into the portfolio recently. There's a number of synergies that have been extracted between our existing businesses or our historical businesses in Musti. You can see on the slide, most of his own brand being sold in our continent stores, in terms of pet food.

But there are also other areas of collaboration covering areas such as sourcing, supply chain, logistics, cybersecurity and sustainability, all of which are important areas for Musti and Musti will see us benefited from being part of the Sonae.

So all of these initiatives, along with many others, I could cover, make Sonae companies more valuable than they would on a stand-alone basis. And this is a key driver of our superior performance in recent months. and we hope in years to come.

So now we'll cover the results business by business, and then I will end with the consolidated figures for 2025.

Starting with MC, the grocery segment delivered a remarkable performance in 2025. Turnover grew by 10% year-on-year, driven by a more than 8% like-for-like growth which was primarily volume driven. And also the impact of the expansion of the store network, we opened 13 new food retail stores during the year, mainly in the proximity format.

And with these results continue to strengthen its market share, so we increased further our market leadership in the Portuguese market despite the very competitive market that we continue to face in the country.

This top line increase combined with a continued focus on efficiency, led to a further improvement in profitability with the EBITDA margin increasing 60 basis points from 9.6% at the end of '24 to 10.2% in '25.

In the health and beauty segment, all banners continued to deliver strong results, Wells anal and done. Turnover grew by 55%, but this growth implies the contribution of [indiscernible] for the full year for the first time. but we had solid like-for-like sales growth of 5.6% during the year and the opening of 42 stores, including 4 new drilling stores in Portugal. The underlying EBITDA margin improved from 12.5% to 13.1%, mainly reflecting [indiscernible] profitability and higher operational efficiency.

So overall, if you look at MC's consolidated figures, revenue grew 16% year-on-year with a like-for-like of 8%. We reached EUR 9 billion, almost EUR 8.9 billion in the year, and the underlying EBITDA margin improved from 10% to 10.8%, an improvement of 80 basis points.

This fantastic operational performance delivered solid cash flow generation, and this resulted in a reduction -- further reduction of net debt to EBITDA from 2.9x at the end of '24 to 2.3x at the end of 2025.

As for Vorton, Vorton solid turnover increased by 7.5%, supported by a solid like-for-like growth of 6%. And this performance was driven by the increasing relevance of the digital channel that outperformed the physical channel. Online sales today weigh roughly 24% of total sales at Vorton. We saw strong performances in the core appliances and electronics categories and also a continued growth of the Services business line.

Vorton reinforced its market share in '25, consolidating position across an omnichannel value proposition. And profitability was under pressure, if you recall, in the first 2 quarters of the year. But in the last quarter, we saw profitability already at the same level of 2024 with a 7.1% EBITDA margin, which reflects the impacts of many mitigating measures that were implemented throughout the year to counteract some of the cost pressures that we sawat the start of '25.

Finally, worried to say that we've implemented a significant management change at working with the new CEO being brought in October, followed by adjustments to the company's executive committee and Board composition, which positions the company well to deliver solid results in 2026.

Now regarding Musti, the company reported its results of the market in February -- in early February. -- and mostly has been strengthening its position in the Nordics and expanding geographically into other countries, and then leave the Baltics and more recently, fortunate. And as you can see, the company saw strong growth in 25, 14% on a comparable basis with a solid like-for-like growth of 3.2%, with particularly strong performances in Norway and Finland and also in Zu, in Portugal, although Zu does not consolidate into most of these accounts until the very last stretch of the year.

Profitability has been registering a progressive recovery we had 12.2% of EBITDA margin in -- at the end of '25, but with a growing performance throughout the year. Gross margin improved from 43.6% to 44%. And we are seeing costs becoming more under control as months go by as we expect the EBITDA margin to continue to increase going into 2026.

Regarding Sierra, Sierra had important here in terms of milestones, strategic poles I mentioned before, we had some important portfolio moves, namely the acquisition of REM in Germany and also the sales that directs at the end of the year.

But if you look at the operational performance of the shopping centers, we saw very, very positive results during 2025. Our shopping centers maintained an occupancy rate of 99%, almost full occupancy, tenant sales were up by almost 5% on a like-for-like basis, and we saw robust rent collections from the tenants in our shopping malls.

The company also advanced in key strategic expansions and refurbishments in shopping centers while continuing to recycle capital throughout the year. And overall, Sierra generated EUR 114 million in total value and NAV actually only went up by 66 million, but that's because the company paid dividends to Sonae in the delta between those two values. But overall, it was a very positive year for Sierra not only in terms of operational performance but also in terms of strategic milestones that were achieved throughout the year.

Now moving on to North, has also already published its results, as you know, is continuing to deliver a very solid operational performance despite a very competitive telecom environment in Portugal, particularly in the B2C segment. Overall, turnover increased by 2% to EUR 1.8 million while EBITDA after leases grew by 4% to 680 million, leading to a margin improvement of 90 basis points to 37.3%.

This performance reflects the diversification of revenue streams as the additional pressure on B2C has been countered by a higher growth in the B2B segment, mainly given the strong growth in ICT services following the acquisition of Palmetto in early 2025. And this strong top line performance, coupled with strong operational discipline as well and very strong efficiency gains has led our margins to increase this year once again.

Net income reached EUR 246 million in a year. This was actually a decrease versus 2024, but only due to very positive one-off effects we had in 2024 from asset sales, tower sales to Cellnex and also some one-off cash proceeds from regulatory purposes from Anacom. Excluding these, net income actually increased by EUR 55 million on a comparable basis. And in Sonae consolidated accounts, NOSH contributed EUR 92 million in our equity method results in the full year.

As for bright pixel, the company ended 2025 with more than 50 companies, and the portfolio was a record year in terms of investments, EUR 68 million deployed in existing follow-on investments, but also new companies. In total, we added 11 new companies to the portfolio. NAV stood at EUR 318 million. slightly down in some investments driven by exchange rate fluctuations, portfolio valuations and some portfolio reconfigurations.

Moving on to the consolidated view. Overall, our consolidated turnover grew 14% to EUR 11.4 billion, driven by the strong performances of our retail businesses, which more than offset the deconsolidation of Zippy, which contributed to our full year turnover last year. On a comparable basis, excluding the impact of M&A activity, turnover growth would still have been 9%. So quite solid for the size of the group.

Underlying EBITDA grew by 24%, mainly reflecting the stronger operating performance at MC and also the accretive contributions from the recent acquisitions. By year-end, underlying EBITDA margin rose from 9.1% to 9.9%, an improvement of 75 basis points.

Consolidated EBITDA increased by 18% year-on-year, supported by the solid underlying EBITDA performance and also higher contributions from equity-accounted businesses, particularly Sierra and Universo had a very strong year in terms of operating performance and operating profitability.

This growth came despite the overall lower contribution from NOSH due to the extraordinary results that we had last year, and also despite some one-off costs that we had at the end of 2025 including EUR 13.5 million linked to a price adjustment in the acquisition of Duni FMC. And so we had a small price adjustment for the acquisition of Duni because a year has passed since the original investment, we had to register that as a one-off cost in the P&L; and also some restructuring costs at Worten that we also accounted for at the and M&A-related costs at Sierra given the 2 transactions that Sierra executed at the end of the year. I would like to stress again that these are all one-off costs, which we do not expect to be repeated in the future.

All in all, in 2025, our net results grew by 11% in the year to EUR 247 million. This result would have been higher, if not for the impact of some unfavorable FX trends, namely the U.S. dollar euro FX evolution as well as some prudent year-end asset revaluation decisions. Again, these impacts are all one-offs, but we do not expect any significant negative impacts in the future.

The strong operational performance generated EUR 265 million of operational free cash flow. This, together with a more limited impact from M&A activity compared to last year, which included major acquisitions at the time, such as Musti, DCF and drilling enabled further progress in our deleveraging path reduced our net debt by more than EUR 100 million at the end of and our loan-to-value reduced from 15.9% at the end of 2024 to 13.7% at the end of '25. And we expect this deleveraging path to continue in 2026.

In total, our net asset value grew by 15% in '25, reaching more than EUR 5 billion at the end of the year. This is an achievement we are very proud because it translates very clearly the value creation that we have been able to achieve in several assets in the portfolio as a result of consistent, solid operational results quarter after quarter and also a reflection of the quality of our assets than we are real estate assets at Sierra that continue to appreciate.

On a per share basis, NAV reached EUR 2.62 per share. And with the appreciation of Sonae's share price in 2025, the discount between NAV per share and the share price narrowed significantly from 60% at the end of 2024 to 38% at the end of 2025. And today, that discount is even lower, but there is still room to grow, and we are still committed to reducing this gap going into the next few months.

The Board of Directors will in compliance with Sonae dividend policy, proposed at the Shareholders' Annual General Meeting a dividend of [ 6.2 ] per share. so a 5% increase year-on-year as is normal in our dividend policy.

And basically, this is all for now. Thank you, and you can now open the session to Q&A.

[Operator Instructions] Our very first audio question is coming from Louise Colaco of JB Capital.

Yes. Good afternoon. Thank you very much for your time and congrats for the great set of results. I have two questions, if I may. The first one is regarding the like-for-likes in Sonae MC, namely the grocery part. You exit -- you have an exit rate of 8.4 in the quarter. Given where we are seeing now the food retail sales in Portugal, do you think that your guidance, I would say, that you provided is of low single-digit like-for-likes going forward? Isn't that conservative, given where we are at this stage?

And my second question is also regarding the grocery part of Sun IMC. The EBITDA margin increased year-on-year, but still the expansion was lower than we saw in the previous quarters. Any reason for this?

And last question, of course, in terms of the indirect results, can you provide us some more color on what happened over there?

Sure. Luis, in terms of the like-for-like, as you mentioned, we had a like-for-like last year of around 8%. What we have mentioned in previous calls is our view in terms of midterm growth for the grocery market is about as you mentioned, low single digits. What we are seeing is mainly driven by the increase in disposable income as well as population growth is clearly over the last year and the beginning of this year, we are seeing a higher growth compared to what we see as our long -- medium, long-term perspective.

And so I would say that looking at the first months, we have there is a slight acceleration on the like-for-like, but not clearly to the levels of the midterm of the 3%, 4%. So we are not so decent from what we have seen in 2025 in the first 2 months of 2026.

Regarding the EBITDA margin, you are correct. So we have a lower expansion of margin in Q4 versus Q3 of 2025. And the main reason was the majority of the in we are capturing within the business. They started to accelerate in Q4 2024. And therefore, what we expect -- what we have seen in Q4 '25 and what we expect going forward is a lower expansion in terms of margin -- EBITDA margin compared to Q4 2025, for example.

Okay. I can take the indirect results question. And so basically, in the right results in the quarter, we had two major impacts. I would say. one related to Brightpixel. And as I said, a bright things that we continue to see negative impacts from the FX, the U.S. dollar versus the year, and we have several investments in dollars, which translates that delta in the quarter. But we also registered in terms of prudence, some write-offs in a couple of assets in the portfolio.

And then we had an impact in Spark food, but this was mainly a correction of a value that we had registered in the middle of the year. So if you recall, we had a positive impact in our indirect income line midway through the year from a transaction that we did at Spark, but we decided to be prudent and to basically counter that positive impact at the end of the year to make sure that we have a conservative approach to valuations at Spark food.

If you look at the indirect income line at the end of the year, as all is practically flat, so the value is residual, and I think you should take a look at the year as something more meaningful than the value -- the variations between the quarters.

[Operator Instructions] We will now go to Antonio Seladas of AS Independent Research.

Just [indiscernible] the call now. So I don't know if some questions were answered. So first 1 is for MC and the EBITDA margin in the fourth quarter despite still very, very strong, it went down from the third quarter. So was an adjustment about 100 basis points, which is not normal at least when we look in the past? That is the first question.

And second question, if you can provide some color or some -- I'll not say guidance, but some color about the performance in grocery in 2026. Thank you very much.

I think I already addressed the first question, but I'll it again briefly. So what we have seen in the fourth quarter was actually a deceleration of the expansion of EBITDA margin versus Q3. And the main reason is we have seen an acceleration on efficiencies in Q4 2024. And so we shouldn't expect the same level of expansion of margin that we have seen in Q3 2025.

That being said, please bear in mind that in Q4 '25, we increased the EBITDA margin by 0.4 and on a pro forma basis during the year, we increased the margins by 0.5%. So that's not a huge gap. That being said, that was the reason.

In terms of performance, 2026 on the grocery part, we are seeing a slight deceleration on the like-for-like, but I wouldn't say it's very material. So we continue to see the market in a very good performance, and MC is continuing to get -- gaining market share in the first 2 months of the year.

So a follow-up question on [indiscernible]. There are some problems with the private market debt and equity. And some of them are related with software companies I don't know if you want to add some -- well, color or some information on this issue.

Thank you, Antonio. I can give you a little bit of color, but it's more or less the same that I've been sharing. So the private market is a little bit better in the last quarter of 2025. but only it's M&A part, not on the IPO market. So the liquidity is still very limited because the M&A operations that we have been seeing are done at lower multiples, which is not enough to give the liquidity that the market is needing to full.

But having said that, we have been seeing an increase on the M&A part, and we have, of course, done some transactions, as we have mentioned in result. So we have recycled more or less EUR 30 million, and we have been able to do it every year. So we will try every year to do our best and to maximize the value that we have.

We were expecting a better year for 2026. But as you can see, the geopolitical parts and the uncertainty that we live in the market, it's very difficult to predict in the short term opening of the market and the [indiscernible] that we would like to have.

Maybe just a final question on Sierra. A very strong investment, some capital spending on the quarter. And I don't know if you want to provide some information on this.

And I can hand it over to Miguel to give you more detail, but it's also -- it's fair to mention that it's true that Sierra has been investing in its strategy, but it has also been recycling capital and generating cash proceeds from asset sales.

And the most important transaction that we did in that regard was the agreement and the sale of [indiscernible] where you -- we only saw the initial down payment at the end of 2025, about 10%, but we will get the additional cash proceeds in the first semester of 2026. So that -- those cash proceeds will be flowing in.

And Sierra has always the strategy of recycling capital that we deploy in its growth at, but I will let Miguel comments a little bit more.

Antonio, thank you for the question. As Jean mentioned, is mostly related with operations that we made at the end of the year. And as already mentioned, we made an investment on REM, a property management company in Germany. And we also made some investments in our development projects that we have in pipeline and we keep investing to make the projects going forward.

So a significant amount at the end of the year, most of them one-off investments related to M&A operations.

[Operator Instructions] Another question an on audio is coming from Rita Bello of CDI.

I just wanted to ask Fernando, in the Food Retail segment. How has MC managed to keep margins significantly above the sector quarter after quarter? And is this mainly related to your product mix, pricing strategies? Or does this result from supplier agreements and operational cost management?

Thank you very much for the very challenging question. So good question. What we have seen over the years was that our cost program has been quite successful. Obviously, it's very difficult to compare between retailers and especially between discounters and full-line supermarket. And so it's very hard to do that comparison. But when we look at our cost structure, I would say what has been and allow us to increase our EBITDA margin over the years has really been the efficiency measures.

On the commercial margin, as you know, we have been relatively stable for a couple of years now. So we haven't seen an improvement or a deterioration on the gross margin. What we have seen is with the growth of the market in Portugal, which has been clearly above the medium to long-term average over the last couple of years, that's obviously helped on the dilution of the fixed costs.

But on top of that and more important, what we have seen is a very significant cost-to-serve program where I would say there are a couple of areas where we have been quite successful: One is around the productivity in store, so the cost -- the personnel cost over the sales we have been able to optimize it significantly. I would say, on the energy part and on the indirect costs, we have also, I would say, important programs to improve our efficiency, and I think that's really the the thing that we have been able to do well as well as obviously leveraging the growth in the sector and especially the increasing market share of MC over the last couple of years.

We have several questions on the chat. Do we have more questions on the voice side?

We have nobody on audio, so we'll pass over to the web.

I'll cover some of the questions we're getting on the chat and if there's any more audio questions, we'll take them afterwards. But we have a question from Juan Ros from Santander. And 2 questions actually. What explains the negative indirect results in Q4? I think I already answered that question. And the second 1 was why was Sierra's EBITDA in Q4 lower than in previous quarters? Mika, do you want to take that one?

Yes, I can take that one. Part of that was already explained. And this is the other side of the M&A activity in some parts. Those are all one-off adjustments that we have in the accounts. and the value that you can see on the numbers that we published are -- that's the sum of several things.

The two main points and the two key impacts on this number are the M&A movements that we have done with REM, as I talked before. And probably, as you know, we bought 100% of the company. So we have to recognize all the costs of the transaction in our P&L.

And the other one is the selling process of [indiscernible]. We also have several costs with that operation, and we are recognizing that already on the accounts of [ 2025 ]. There are a lot of different other small topics that are not material for explanation, but those are the key adjustments that we have on the account.

Yes. So Sierra's underlying recurring EBITDA, it maintained its growth trends. The one explanation for this evolution is are these one-off impacts that Miguel was talking about. .

We have a second question from Julian about the potential higher energy costs against the current backdrop. So what's the percentage of energy costs that are hedged?

Overall, we have a bit over 60% of our energy costs that are either we have own production or we have some sort of hedging strategy and that's fixed for the remainder of the year. So we are only exposed to 38% of our energy bill to the existing markets.

We have another question from Samuel, asking if the group is considering a direct entry into the insurance sector to replicate the insurance got model so as to have a permanent low-cost capital source to fuel the growth of new book verticals, while reducing reliance on external net as a persistent high cost of capital environment?

It's a good question. The answer is quite straightforward. So we do not have any intentions to enter the insurance sector. We are, nevertheless, quite comfortable in our debt position. Our cost of funding right now is very low. We refinanced over EUR 1 billion in debt in the last few months at very low cost of spreads of roughly 55 to 60 basis points. And so we are quite happy with our cost of debt, and we expect net debt net levels to come down further in the next few months. And so we are in a deleveraging path which is going to be quite consistent over the next few quarters.

And then we have another question from Alexandre. Could you give some color on the potential impact of the Iranian war on MC? I don't know, do you want to take that?

Alexander, thank you very much for your question. I think Drew have already addressed it partially. So in terms of top line and obviously, inflation being a key factor, we are not seeing yet any impact on the inflation in our sales prices. So as Joao mentioned this morning, we have an inflation of around 3% year-to-date at MC. This 3% is actually mainly driven by some fresh categories due to the scarcity of some products. So even when we look at the FMCG products, we are very close to the 2%, which is, as you know, our medium term when you look backwards average. And so no impact there.

When we look at the energy costs, yes, so what -- there might be an impact. Just to give you some metrics. AMC energy represents less than 1% of our sales. out of that deal, we have, as we mentioned, more than 60% hedge. And then you have multiple variables such as the excess tariffs and all other charges. So if you want to have a very I would say, high-level value, our hedge part of energy is about EUR 10 million for this year for 2026. So the direct impact on the LNG -- but shouldn't be that high.

Obviously, when you look at other variables that might be impacting such as logistics and other costs is very difficult to predict at this stage. So the impact yet is quite limited in the business. Let's see how the things progress and what measures we need to implement.

Okay. I'm not sure if we have further questions.

Not on the audio, sir.

Okay. I think we covered all the questions on the chat as well. So thank you very much for listening in. I think the key points that we would like to stress in the call are that we are very happy with the 2025 results. They show very strong performances from all our businesses. Basically, all our businesses improved their competitive positions and their market shares in their respective markets. We are quite happy not only with the growth level but also with the operating profitability that we were able to achieve throughout the year. And we are also quite confident on what lies ahead in 2026, given the start of the year that we already have. So thank you very much for listening in, and we'll see each other in May when we present our Q1 results for 2026. Thank you.

Thank you, sir. Ladies and gentlemen, that will conclude today's conference. Thank you for your attendance and disconnect. Have a good day and goodbye.

Good morning. We welcome you to Sonae's First Half 2025 Results Conference Call. During the presentation hosted by Mr. João Dolores, Sonae's CFO [Operator Instructions]. I will now hand over the call to Mr. João Dolores. Please go ahead, sir.

Thank you. Good morning, everyone. Thank you for joining us for Sonae's results presentation for the first half of 2025. Besides myself and the Investor Relations team, we have on the call with us Cristina Novais from BrightPixel; Fernando Van Zeller from MC; Paulo Simões from Worten; and Miguel Moreira from Sierra. I'll start with a brief reminder of our most recent portfolio changes. As you know, we made an important investment in the pet care space last year by acquiring a controlling stake in Musti and then by making a first international expansion move into the Baltics with the acquisition of Pet City.

We also established a strategic partnership with Druni, thereby creating the leading health and wellness and beauty player in Iberia. And more recently, in May this year, we reached an agreement to sell MO and Zippy, 2 of our fashion retail banners. And last week, we announced the closing of this transaction. These operations reflects our active portfolio management and disciplined capital allocation approach. We are now focused on helping our new companies grow, building on our know-how and on our capabilities.

Just to give you a few examples, we are currently helping Musti on several fronts, namely by leveraging our scale in areas such as IT and product sourcing, but also by providing support in store operating models, streamlining of logistics and M&A. Musti's expansion into the Baltics through the acquisition of Pet City is a clear opportunity to add value to this operation, namely by exploring synergies in product development, sourcing and IT between the 2 companies. With the partnership with Druni, our health and wellness and beauty companies are already benefiting from enhanced efficiencies and improved value propositions across all banners.

Let's now move on to our results business by business, starting with MC. In grocery, Continente once again outperformed the market, reinforcing its position as a leading grocery retailer in Portugal. Like-for-like sales grew 10.5% in Q2, supported by strong volumes performance, which also benefited from the timing of Easter this year. If we look at half year growth, like-for-like sales growth reached 7.8% and 9.5% in total, representing yet another significant increase in market share. Grocery underlying EBITDA margin improved by 60 basis points year-on-year to 10.4%, driven by the evolution of turnover and also important efficiency gains. In health, wellness and beauty, results were driven by the contribution of Druni Group, which has been consolidated into our accounts since the third quarter of last year, but also by organic growth and expansion.

Revenues reached EUR 415 million in the quarter, further reinforcing our banner's leadership positions across Iberia. Underlying EBITDA margin increased by 1.4 percentage points to 12.5% in Q2, reflecting stronger profitability through the successful integration of Druni in Spain and also solid improvements in operating profitability at Wells in Portugal. So overall, if you look at consolidated results at MC, we see an increase in revenues of 27% to EUR 2.1 billion or 11.4% year-on-year on a comparable basis, excluding the contribution from Druni. MC was able to improve underlying EBITDA margin by about 90 basis points year-on-year to 10.8%, supported by stronger performance across both the grocery and the health, wellness and beauty segments.

Regarding financial leverage, MC kept a comfortable position with total net debt to EBITDA reaching 2.8x at the end of June of '25. Moving on to Worten. The company reinforced its market share in Portugal once again on the back of a strong performance of the online channel, in particular. So we continue to increase our market leadership position in both the off-line and online channels since the beginning of the year. In Q2, total turnover grew by 10.6% to EUR 313 million, backed by a robust like-for-like growth of 6.9% in a challenging environment with intense promotional activity.

Worten delivered top line growth across all segments with volume gains in core electronic categories, strong double-digit growth in new product categories and continued momentum in the services division. In what regards to profitability, underlying EBITDA margin reached 2.5% in the quarter. This was a decrease in margin, which was influenced by a higher cost base associated with strategic growth initiatives, mainly impacting logistics and staff costs as well as persistent inflationary pressures. We are now working to make sure that we mitigate these impacts on the cost base until the end of the year. As for Musti, the company released its quarterly results earlier this week.

As you might have seen, during the period, Musti strengthened its leadership position in the Nordics pet care retail market on the back of a rebounding market after a period of weaker market growth. Nevertheless, the company increased its market share quite clearly. Like-for-like sales improved yet again this quarter, reaching 5.7% in total with particularly solid display from Norway and also Finland, which is the company's original core market. Total turnover grew 17% to EUR 122 million, supported also by the consolidation of Pet City. And despite a still challenging operating environment, underlying EBITDA rose to EUR 12.9 million, although the margin remained under pressure due to continued investments in growth and market share and higher operating costs. But even here in profitability, both in terms of gross margin and underlying EBITDA margin, we are seeing month-on-month improvements, which also give us confidence to what remains for the rest of the year. Moving on to Sierra, our real estate business. The company maintained a strong momentum in the second quarter of the year across its European shopping center portfolio, while services continued to follow the diversification strategy and the development activity progressed steadily throughout the quarter.

Sierra's European shopping center portfolio posted solid results, as I said, with tenant sales continuing to grow, footfall rising again, and we have nearly full occupancy levels in all of our shopping centers. In line with its long-term value creation strategy, Sierra also initiated key expansions and refurbishments across several assets aimed at unlocking additional value and improving the customer experience. Overall, Sierra's net result rose to EUR 33 million in Q2, up by 5.7% year-on-year, supported by the strong operational performance and at the indirect result level by higher shopping center valuations, which contributed to an increase of NAV to just over EUR 1.1 billion.

Moving on to telcom technology. NOS already reported its results to the market as usual, maintaining a strong focus on delivering advanced solutions to customers in all segments supported by its next-generation network footprint. Total revenues reached EUR 458 million in Q2, driven by continued growth in the core telco business with a specific highlight to the significant growth in the corporate segment, which totaled 9%. Consolidated EBITDA also increased to EUR 203 million, with all business areas contributing positively for this performance. Operational profitability improved. So the NOS contribution to Sonae's equity method result was lower year-on-year as the prior year benefited from one-off gains related to the sale of towers and also the activity fees from Anacom, but on a comparable basis, profitability was better than last year.

On April 24, NOS paid an ordinary dividend of EUR 0.35 per share and an extraordinary dividend of EUR 0.05 per share related to the '24 results, which meant a EUR 77 million cash in for Sonae. Finally, Bright Pixel with more than 50 companies in the portfolio invested in 5 new companies since the beginning of the year until the end of June and continued the development of a pipeline of new ventures to expand the portfolio over coming months. NAV reached EUR 328 million with cash invested totaling EUR 213 million, implying a potential cash-on-cash return at this stage of 1.5x. Moving on to our consolidated view. Overall, our consolidated turnover grew 24% year-on-year to EUR 2.7 billion, driven by strong organic growth across our core businesses and also the contribution from new companies to the portfolio, including Druni and Pet City.

Excluding portfolio changes, consolidated turnover posted a solid 11% year-on-year increase. Underlying EBITDA amounted to EUR 255 million, improving by 38% versus last year. This positive performance of our fully consolidated businesses, combined with a EUR 33 million results in terms of equity method led consolidated EBITDA to reach EUR 274 million in Q2, up by 38% year-on-year. Net result group share increased to EUR 59 million, an increase of 23% versus last year, driven by the improved operational performance across our portfolio companies and also a favorable indirect results, mostly related to Sierra's shopping center revaluations.

Net debt before dividends paid increased EUR 75 million in the last 12 months due to the significant acquisitions that were executed in the last year. If we look at the performance of the original portfolio, Sonae registered a total of EUR 254 million in free cash flow, as we continue to generate healthy levels of cash flow across all our main businesses. And we continue to have a quite solid financial position with significant available liquidity facilities and a well-balanced debt maturity profile.

The holding loan-to-value stood at 13.8% at the end of June, down from 15.9% at the end of December last year, as we progress on our deleveraging path. As a final note, I would like to highlight the evolution of our net asset value, which grew 7.3% year-to-date and reached EUR 4.7 billion at the end of June, which equates to EUR 2.44 per share. This positive evolution was mostly fueled by improved valuations of MC and also received dividends, which offsets the softened performance of the NOS stock price in the period. This is all for now.

Thank you, and you can now open the session to Q&A.

[Operator Instructions] We do have a question coming through from the line of José Rito calling from Caixabank.

So I have one question on the health and beauty business. Just to have some clarity on the slowdown that we saw in Q2, if this was only because of the comparison base or if you are seeing some moderation on the market growth? And related to this, I witnessed that minorities in the P&L increased substantially in Q2. Is this related with Druni? So this will be my first question. The second on Worten. So we are seeing a very strong top line performance, but then both margins and EBITDA declining year-on-year. I think that in the past, you mentioned that this is related to growth investments that the company is doing. Could you explain a little bit better in terms of the dynamics of the margins, if you are seeing a dilution also from the margin mix? So mainly the fact that you are investing in iServices online or the fact that online expansion or the growth of the online channel is also diluting margins. So some clear visibility on this will help. And then finally, on MC, so if you can detail a little bit of the difference between volumes and price component in the like-for-like in Q2? And also, what was the market share gains in the first half for Continente?

Thank you, José. So I'll hand your questions directly over to Fernando on the MC ones and then to Paulo on the Worten question as well. Fernando, do you want to start?

Sure. Hi. José, thank you for your question. So starting from health, wellness and beauty, the like-for-like, as you rightly pointed out, the like-for-like of health, wellness and beauty was around 2.9% in Q2 '25. I would like to highlight that if you pro forma for Druni, the like-for-like goes up to 7.2% on Q2. And when you look at H1, the pro forma is also 7.6% versus 4.6% without Druni. And the main reason for the slowdown of Q2 in terms of like-for-like is really the impact on Arenal from the integration. So we are over the last couple of months, making significant changes to the value proposition of Arenal, both offline and online, and that has an impact on the like-for-like. So when you pro forma for Druni and also when you take into account the performance of Wells, we are seeing a like-for-like of about 7% to 8% year-to-date.

And so a very positive momentum in the business, despite also obviously, the changes we are making in Arenal, which during the course of this year should have a negative impact on the like-for-like, which as we don't have Druni in Q2, it's -- you can see more the impact of Arenal and from Q3 and Q4, less because, obviously, we have this pro forma. That being said, it's obviously a very competitive market these days, mainly in Spain, and the market is growing about 5%. So we are clearly growing market share in this market in Spain and Portugal.

Going to the second question around minorities. Yes, the impact is really on Druni. As you know, we have a 50% partnership with the [ cast family ] for Spain and that we consolidated -- fully consolidated in our P&L. And so this is really the impact of the minorities of Druni in our P&L of MC. Going to the questions on grocery. When you look at Q2 in terms of the 10.5% of like-for-like, as you know, it has probably around 2 percentage points of impact of the Easter in this year of being in Q2. When you break it down in terms of volumes and price, we're talking about price inflation around 3% over the quarter, slightly above 3%, 5% of volumes and 1% to 2% of improved mix. Obviously, the mix in Q2 because of the Easter is positive, is particularly positive in these months. So that's really the core of the breakdown. In terms of market share in the first half of the year, we improved our market share in Continente about close to 0.5 percentage points. I think that's it on my end.

Thank you, Fernando. Paulo, do you want to take the Worten question?

Sure. José, thank you for your question. So regarding the margin at Worten, margin percentage-wise is stable, so no impact there. Worten is having a good market and customer momentum. We are growing significantly by 7% in the quarter, 5.4% on a like-for-like basis, so very healthy growth, as you said. And we are very happy with those results. Our NPS is also increasing 1 percentage point in this period. So overall, margin is stable, no dilution there and the excellent sales growth gives us growth in margin in euros. So what's happening in -- at EBITDA level is that we have higher logistics costs as a result of higher stock level. And consequently, we had to rent additional warehouse space, people and equipment to operate those warehouses.

And that brought some inefficiency. Additionally, we are building our future logistics platform near Lisbon, that also impacted a bit our cost base. Also, staff levels, we tested increasing customer service in store and accelerate the growth of some new business areas like services, for example. We have been testing that with additional people in the stores. Now we are able to pinpoint those services that require more people and have positive impact in growth and profitability. So we will adjust going forward. Additionally, we had a spike in shrinkage, especially in the first quarter that is now back under control. We reinforced security in our stores and things seem to be back to normal now.

So those costs will not carry over in the second half of the year. And finally, we also had an impact of higher energy costs, especially in the first quarter also resulting from a spike of energy costs in the Iberian market. Now it's back again to more -- to lower prices. So hopefully, this will not happen also in the second quarter. So overall, in summary, we have stable gross margin, no dilution there. Excellent growth in sales, especially online, very good performance in the market and with improving customer relationship. And we are investing to accelerate growth, had some learnings, and we will now focus on streamlining the cost base. And hopefully, in the second half of the year, we will recover profitability again.

Understood. So I assume that these logistics investments that you are making that you mentioned that eventually increase the cost base in H1 will fade in the second half, but -- and then in 2026 will not be there, right?

Logistics specifically, I think we will have -- we will need some more time to solve it. We still have a bit of stock above the optimum level that we will be dealing with over the next semester. And -- so we will have the additional space needs still in place for a couple of months. Let's see how sales grow. If sales growth is good in the second half of the year that -- and we expect that to be the case, those costs will also come down. So we'll have to wait, but there's still some lag in solving the logistics part.

Maybe I would just add to Paulo's remarks that I mean, I think looking at this performance from Worten, what we see is a quite positive performance in terms of growth and market share gains and a healthy growth in the sense that, as Paulo mentioned, gross margin is relatively stable versus last year. And we do have a few cost lines that we need to work on until the end of the year, which the team is addressing now. So we are also optimistic on what lies ahead.

We currently have no further questions coming through. [Operator Instructions].

I think we got 2 additional questions from Julian from Kepler on the chat, which I can address. So the first one is, could you give us a more detailed explanation on the like-for-like for MC's health and wellness and beauty division? And what's your outlook for the second half of the year? And I will let Fernando answer this question in a minute. And the second one is your NAV discount is now at 45% versus share price below your 15-year historical average. Which are the drivers you identified that could narrow it? So maybe I'll take this one first, and then I'll ask Fernando to answer the one on the like-for-like of health and wellness and beauty.

We're very happy with the performance of Sonae's share price since the beginning of the year. And it's true that we have been able to narrow significantly the discount versus NAV, but we're still not happy. So we still feel, obviously, that there's a huge potential to unlock value in the share price given the value -- the intrinsic value of our assets. So the drivers that we identified that can narrow it are multiple fold. So I would say that the main driver has to be our continued strong performance. It's only with continued strong results that we are able to prove to the market that we have winning value propositions with very capable management teams that are able to win in their respective markets and generate value for our shareholders.

And that has been happening consistently throughout the last quarters and the last few years. And so that's the main driver. If we keep consistently delivering results, I think that that's the most important thing that we can do. And then there's a number of other things that obviously we are doing, making sure that our Investor Relations activity is as far-reaching as possible, that we explain Sonae's equity story and value creation story to the market that we reach more investors. And that we have also been doing and investing a lot in that area in the last few months.

I think also the international investments that we've done in the last 18 months have helped us reach the attention of a base of investors that was not there before. And so they're now looking more at Sonae, at our performance. So I think it's a number of things put together, but I think we're on a good track, and we are very confident that we can continue on this positive path closing down the gap versus NAV.

Fernando, do you want to take the health and wealth and beauty question?

Sure. I think the question was more or less the same as José, but just to clarify, we have a 2.9% like-for-like in health and wellness in Q2. If we pro forma it for the acquisition or the partnership with Druni we get to 7.2% pro forma, which is more or less in line with what we have seen over the last quarters for health, wellness and beauty. For this -- and this is mainly due to the fact, as I was mentioning before, that at Arenal, we were actually making important changes to the value proposition, which is impacting the like-for-like, and we expect that to happen over the course of this year.

On the second part of your question around the second half, it's obviously difficult to predict what's going to happen. I would say that if the macro environment stays the same, we should expect, I would say, more or less the same level of like-for-like of around 7% in the health and wellness division. That being said, and obviously, both for grocery and health wellness and beauty, it's going to be key really to understand if the macro stays as robust as it is in Iberia, mainly driven by disposable income, immigration, tourism. But I would say that if the macroeconomic environment stays the same, that's more or less our expectation and the continuation of the growth in market share, both in Portugal and in Spain.

We do have some further questions coming through via the audio lines. The next question comes in from the line of António Seladas calling from A|S Research.

I have 2. First one on Bright Pixel, if you could provide some color on the environment because I noticed that you have been buying assets, but it seems difficult to sell it or at least to do the asset rotation. And second question is on Sierra. I know Sierra paid a generous dividend, EUR 49 million, I think. So maybe you can -- is that something that should be repeated in the coming years or it was just a one-off payment?

Thank you, António. Cristina, do you want take the Bright Pixel one?

Yes, of course. Thank you António, and all the rest. Good morning, everyone. So giving some color about the market is very difficult, but we have mixed times nowadays. We have some parts of the world, namely U.S. with higher activity, but mainly focused on AI investments with strong valuations. And the rest of the world is more come. Even Europe is very stopped. We keep continuing investing, as you said, in our rhythm. So we are investing since the last 12 months more than EUR 50 million. And we are doing some exits. We did it in the last quarter of last year. We did small exits this year, and we are working on a couple of them. But this is -- it depends not only from our side, but our main focus is keep our strategy in our current segment and, of course, coupled with a good level of recycling capital. So we hope that in the next quarters, we have some exits and continue investing in the portfolio.

Miguel, do you want to take the Sierra one?

Yes, thank you for the question. And thank you, António. Regarding dividends, what we can say is that they are 50%, 50% between the more recurrent component and the other not so recurrent. We have a stable policy regarding dividends with our shareholders, and that policy is supported by the distribution of dividends related with our current activity and normal activity, but also the dividends that result from the adjustments from the portfolio and sales of assets and all that. So these results are composed by these 2 components and 50% division between them.

So it means that around 25 -- between EUR 20 million and EUR 25 million. Is that the case?

Yes, it's [indiscernible].

Just on Worten, a follow-up question on Worten and taking margins and so on. You mentioned that it should improve. Nevertheless, if you look for -- it seems -- well, margins have been under pressure, not just this quarter, last quarter, but over the last year. So it seems that there's a downward trend on margins. So I don't know -- well, it seems that it's not just a specific season of logistics or whatever, it seems that the market environment that is very tough. I don't know if you could provide more color on this or some more insights.

Maybe I can start because I gave the answer, and I'll let Paulo complement. So what we're seeing is in terms of commercial margin versus last year, it's true that it's always been under pressure, and this is a challenging sector. But if you take a comparison with last year, it's fairly stable. If you take into consideration the mix of products and services that we have had in recent months, so that's why I was saying that we are not unhappy with the performance in terms of sales and in terms of commercial margin. But obviously, it's below that, that we are seeing some additional pressure that we are working to try to solve. But I will let Paulo complement my answer as well.

Yes. Thank you, António, for the question. We don't feel that this year, we have especially aggressive competitive environment in terms of price. So we don't feel that on the competitive environment, and there's no impact whatsoever on commercial margin. So we are happy with the margin performance in the company. And as I and João already reinforced, these are operational costs. We did some tests in terms of accelerating growth, and we will be correcting those excess costs going forward, and we expect the company profitability to recover on the second half and going forward. So we don't have that view that the competitive environment is worsening our results this year.

Okay. So commercial margin is gross margin, yes?

Exactly. That's it.

I believe we have further questions coming through from the webcast. So I'll hand it back across to yourselves.

Okay. So we have a couple of additional questions from Luis Colaco from JB Capital Markets. Can you please provide us with some color on how the competitive environment in the food retail sector has been evolving over the past 6 months? Which players and segments are underperforming? And also, can you please provide us some color on the indirect income results that were much higher than in the most recent quarters? What drove this revaluation?

So I can start with this one. So it's true that we had important revaluations during the quarter, and we had revaluations in both centers. Most were on the positive side. So the most important ones come from Sierra, revaluation of assets, real estate assets, and that has mostly to do with the net operating income of the assets because yields have been fairly stable since the beginning of the year. So this is just a revaluation based on the positive performance of our shopping center assets.

We also have some positive impacts in our Sparkfood division from some revaluations of participations there. And we had some headwinds in terms of the U.S. dollar-euro exchange rate, which brings down -- which slightly counters these positive impacts at Bright Pixel. As you know, we have several investments which are denominated in dollars. And so that has -- so it's a combination of different things, but mostly positive effects. Fernando, do you want to take the one on the competitive environment in food retail?

Sure, sure. Luis, thank you very much for your question. Around grocery retail, as I was mentioning before, the market overall is growing at a healthy pace, and this is mainly driven by macro disposable income, again, immigration, tourism. When we look at the competitive environment, it remains quite challenging and fierce. So when we look at all the initiatives of the different players around price, promotions and new products, assortment, on one hand, we're seeing a lot of pressure on that side. On the other hand, when you look at the expansion and remodelings, we continue to see a various number of players opening new stores, remodeling their stores as well as we are doing.

And so we feel that on the 2 angles, all the big players in the Portuguese market are investing in their value propositions as well as new stores and remodeling. In terms of segments, as you asked, I would say that the segments -- the growth is more or less homogeneous. That being said, we see the fresh products in the market outperforming the FMCG in total, and this is mainly driven by fruits and vegetables, meat, fish. And so those are the categories that are growing at a faster pace in the market as we stand. So all in all, a market that is growing at a healthy pace, mainly driven by macro, but remaining with a very competitive market in all its dimensions.

Thank you, Fernando. We have an additional question from Luis. If we can provide more detail on the EUR 14 million negative nonrecurrent items. So this is -- we have several impacts here, but the 2 biggest ones are the capital loss that stems from the transaction, the sale of Mo and Zippy. So we had announced to the market an estimated capital loss of roughly EUR 24 million. It was actually a bit below that. So it was EUR 19 million. And then we have a positive impact from Sierra's activity that relates to portfolio management in Brazil, which is EUR 8 million positive. So these are the 2 main impacts of that line. And then we have some smaller nonrecurring items, but these are the 2 most important impacts.

So we do have a couple of additional questions from Rita Belo, from CaixaBI. What's the market share of Sonae's health, wellness and beauty segment in the Iberian beauty sector? And also a question for Worten. During the last quarters, we have seen a decrease in Worten's EBITDA margins, do you expect operating profit to be positive in 2025? Or do you expect profitability to remain pressured in the second half of the year?

I believe we mostly covered this question. I will ask Fernando to take the one on the health wellness and beauty segment.

Rita, thank you very much for the question. Quite a good one and a very complex one. So as you know, in terms of our value proposition, we have a lot of different segments, health, beauty, optics across Iberia. And so we don't have a market definition overall or any kind of public information and source that give us the different -- the combined market share, obviously. That being said, I can give you a couple of data points. In terms of health and beauty in Spain, Druni and Arenal, they are clearly the market leader in health and beauty, specialized retail, obviously, excluding the grocery, let's say, size of this market. When we look at health and beauty in Portugal, Wells is already also the leader in this sector.

And then when we go to optics, obviously, Wells, it's still growing its business. So it's not the market leader, but already has an interesting close to 10% market share in this segment. And so all in all, I would say we are the market leaders in all the different dimensions. That being said, even the definition of the different segments are markets, they are not super easy to make. And so it's difficult to give you an aggregated market share, but clearly, the leaders in all the different segments and reinforcing the position this year.

Thank you, Fernando. And just to comment on Rita's second question, we do expect, obviously, Worten's operating profit to be positive in 2025 and recovering in relative terms from what we saw in the first half of the year. I believe we have another question on the call.

The next question comes in from the line of José Rito calling from Caixabank.

Just a question on Musti, just to ask if you think that the bottom has been reached in Q2...

Was that on Musti?

Musti, yes.

Look, yes, we're very happy with the performance of Musti in Q2. We see the market rebounding in terms of total growth. So as you know, the pet care retail market had a rough year in 2024 overall globally. But we are seeing now the market rebounding, coming back to growth. But Musti is clearly growing ahead of the market, as I said. So we are growing right now in Norway at double-digit like-for-like, in Finland at high single-digit like-for-like. And in Sweden, a bit lower because we are managing a bit more for margins and for profitability.

But still, we -- in all the geographies, we are increasing our sales ahead of the market, taking share from the competition and seeing our operating profitability also improve. And that's on the back not only of global sales, total sales, but also on the back of the mix. So we are seeing a rebound in all categories and particularly discretionary spending, which is especially relevant in terms of profitability. And so now we are seeing positive figures in food, disposables and also toys and accessories. And so that's very, very important for us to make sure that the economic equation is a sound one for the company. And we also are implementing a number of efficiency measures working collaboratively alongside the Musti team to make sure that these efficiency gains are extracted.

And so we are quite positive in what concerns the rest of the year. And so we are positive that the second half of the year will follow the trend that we have been seeing in recent months of recovery, not only in terms of top line, but also in terms of profitability.

We do have another question in the chat from [indiscernible]. Could you please comment on the outlook for MC in the second half of the year? Fernando?

Thank you very much for the question. In terms of the second half of the year, difficult to forecast at this stage. As you know, the first half of the year was quite positive, driven both in food and health, wellness and beauty. So in terms of the top line, I would say that clearly, the key driver of the potential growth over the next months are going to be the macro environment. Again, I think that's going to be critical. In terms of margin, in the first half, we have seen, again, the commercial margin more or less flat. And so we would say, given the competitive pressure we're seeing, we expect more or less the same trend over the second half. So the market is quite competitive, mainly in price promotions. And so we are not expecting an improvement in commercial margin clearly over the course of the rest of the year. And in terms of the margin profile, mainly across the grocery sector, I would say that the evolution of the margin is really going to depend on the top line.

As you can see, with the commercial margin flat, we have a very important and relevant cost to serve program to make our company more and more efficient. But clearly, the fact that the top line has grown significantly in the first half of the year also helped obviously to dilute some of the fixed costs we have. And so I would say that in terms of profitability is really going to depend on also how the top line evolves. But what we have seen also in the first month of H2 in July is a similar trend to the first half. Let's see how it evolves over the next months.

Okay. Thank you, Fernando, for that answer. And also thank you, everyone, for the questions that you posed. As you can imagine, given the performance that we saw in H1, we are quite positive about what remains of the year. And so we will be back in November to comment on the Q3 results. Thank you very much, and see you then.

Thank you.

Thank you for joining today's call. You may now disconnect your handsets. Speakers, please remain connected and wait further instructions.