Sonae is a multinational business group headquartered in Maia, Portugal. It operates in 90 countries, working in various sectors, among which retail (food, electronics, and fashion), real estate, media and telecommunications, technology investments, and financial services stand out.
It is the largest private employer in Portugal, with a total of 48,222 employees. On February 17, 2022, the company's CEO, Cláudia Azevedo, announced a restructuring of the company's image and its respective subsidiaries.
Sonae is listed on the Euronext PSI-20 in Lisbon, with the code SON.
History
Sonae was founded in 1959 by the entrepreneur, banker and patron from Arouca, Afonso Pinto de Magalhães. The business group originated from the Sociedade Nacional de Estratificados, an industrial company operating in the area of processed wood, more specifically, in the production of decorative high-pressure laminated panels.[4] During the first two decades of existence, Sonae remained as a small to medium-size business company.
Afonso Pinto de Magalhães, also the founder of the Pinto Magalhães Bank, placed Fábio Lemos in control of Sonae in the turbulent years following the Carnation Revolution. During that period, the company was nationalized and then reprivatized.
In 1982, Afonso Pinto de Magalhães gave 16% of Sonae to Belmiro de Azevedo, who had been admitted to Sonae in 1965. After the death of the founder, Belmiro de Azevedo reached the majority of the capital, with 54.6%, taking control of the company.[5]
During the 1980s, Sonae began its fast growth. In 1985, Sonae Investimentos SGPS, S.A. was created and the group entered the Lisbon Stock Exchange.[6] It was also in the early 1980s that Sonae began its business diversification strategy through acquisitions and the creation of new investments.
The group entered into the modern distribution market by opening the first hypermarket in Portugal, "Continente", in Matosinhos. Two years later, Sonae launched seven takeover bids to seven companies, which allowed the business group to grow in various business areas.[7]
In 1993, Sonae Indústria expanded its investments by acquiring a controlling position in Spanish company Tafisa, which allowed the company to extend its business segment. Posteriorly, another important step was taken when Sonae entered into the specialized retail area with the launch of Worten.
In 1998, with Paulo de Azevedo leading the project, Optimus was born.[8] The mobile operator merged with Zon in 2013, giving rise to NOS.
In 2007, Paulo de Azevedo took over the leadership of the Sonae group, succeeding his father, Belmiro de Azevedo.[9]
In March 2015, Belmiro de Azevedo announced his resignation as Sonae chairman. Paulo de Azevedo was chosen as the new chairman and CEO of the Sonae group, sharing the executive committee presidency with Ângelo Paupério, who was the vice president of Sonae until that point.[10]
In 2018, Cláudia Azevedo was elected executive president of Sonae by the biggest shareholder company of the group, the Efanor. Belmiro de Azevedo's daughter started functions in May 2019, replacing the group Co-CEOs, Paulo de Azevedo and Ângelo Paupério.[11]
2022 Results
Consolidated business volume exceeded 7.7 billion euros, growing by 10.9%.
Underlying EBITDA margin was 8.2%.
The Sonae Group's total investment in Portugal amounted to one billion euros, with consolidated investment growing by 34%.
Net debt reached its lowest value this century, at 540M€ at the end of 2022, with the Group maintaining 1.3 billion euros of available liquidity.
Sonae continued its journey towards carbon neutrality by 2040, reducing CO2 emissions by 24% (vs. 2018), and increased the level of recyclable plastic packaging for its own brand products to 80%.
Support to the community increased by 47%, with 31.3M€ donated through financial means and goods, directly supporting 1,497 institutions.
Sonae achieved its goal of having 39% of leadership positions held by women, one year ahead of schedule.
Currently, Sonae has an organizational structure separated by different business areas, which include the following subholdings:
MC
MC is the leader in the Portuguese food retail market with an important role in the health, well-being, and beauty sector in the Iberian Peninsula. It has 1,411 stores, comprising the brands: Arenal, Bagga, Continente, Continente Bom Dia, Continente Modelo, Continente Online, Dr. Wells, Elergone Energias, Go Natural, Meu Super, Note!, Wells and Zu.
Zeitreel
Zeitreel is the largest Portuguese fashion group, responsible for Sonae's specialized retail area in sports and clothing. Its portfolio includes the brands Salsa (jeans, clothing, and accessories), MO (clothing, footwear, and accessories), Zippy (baby and child clothing, footwear, and accessories), and Losan (specialized in wholesale children's clothing with a strong international presence).
Worten
A leading omnichannel retail company of products and services, focusing on appliances and electronics with a total of 276 physical stores. It also has a strong online presence, complemented by the expansion of its marketplace. It includes the brands Worten, Worten Mobile, and Worten Resolve.
Universo
Universo is the business unit coordinating the financial services offered by Sonae companies, transforming how families and small businesses manage their finances by innovating with simple financial solutions that positively impact people's daily lives. This segment includes the Universo Card (Payments, Card, Personal Credit, and Insurance), the Cartão Dá (meal card, gift, and rewards), Universo Flex (financing for online purchases), MoneyGram, and in-store credit services.
Bright Pixel
Bright Pixel Capital has an active portfolio management strategy, aiming to create and manage a set of technology companies related to retail, telecommunications, and cybersecurity. It supports the company's strategy and operations, maximizing shareholder return on the portfolio of participated companies. Currently, its portfolio includes WeDo Technologies, Bizdirect, S21 Sec, Inovretail.
Sonae Sierra
Sierra operates in the real estate sector with an integrated approach, managing investments, real estate promotion, design and construction, asset management and leasing, and sustainability and ESG services. It seeks robust platforms from which to create solid investment return strategies in different parts of the world. From commercial spaces to public or residential spaces, from project management to turnkey projects, Sierra is at the forefront of sector knowledge and is, therefore, the ideal partner for developing innovative concepts.
Sonae owns 100% of Sonae Sierra's capital.
NOS
NOS is a telecommunications and entertainment group offering a wide range of telecommunications services to all market segments: personal, residential, business, and wholesale. It has a prominent position in subscription TV services, next-generation broadband services, telephony, and film distribution in Portugal. Sonae holds 37.4% of NOS's capital.
Innovation
In 2012, Sonae invested more than 70 million Euros in research in the retail sector, in a programme that involved around 3,200 employees. In 2014, Sonae compiled a book with more than 80 innovations developed during 2013, in areas like Health or Technology, many of them with national and international prizes.[12]
Recognition
Sonae has received awards and distinctions in a number of areas, having been recognised as one of the Most Ethical Companies in the world,[13] as Human Capital Master[14] and with the ICSC Solal Marketing Awards.[15] According to the latest edition of the Global Powers of Retailing report, carried out by Deloitte and the American magazine Stores, Sonae is one of the 250 largest retailers in the world, positioning itself at 155 place, which is equivalent to an increase of 10 places from the previous ranking.[16] In 2015, Sonae's major retail brands were distinguished as "Trusted Brands", according to the international study carried out for the 15th consecutive year by the Reader's Digest Selections.[17] It is the second most desired company to work by Portuguese university students, according to a survey conducted by Spark Agency and Economics and Management School at Minho University.[18] The company was recognized by Kaizen Institute for its continuous improvement. Continente was honoured with the title "Kaizen Ambassador", for its work carried out in store operations, and Worten was the winner in the "Excellence in Quality" category, for its sales force management project.[19]
Sonae brands (Continente, Worten, Sport Zone, Wells and Zippy) were the most valued by consumers, in the fourth edition of Consumer Choice Awards.[20]
