SANTIAGO, Chile--(BUSINESS WIRE)--Cencosud S.A. announced its second-quarter results today, reporting a profit of CLP 109,777 million (USD 117 million), a 75.1% increase compared to the same period last year.
Revenues, rose 9.9% between April and June 2024, compared to the same period in 2023, totaling CLP 3,962,806 million (USD 4,240 million). This result was driven by the strength of the supermarket business, market share gains in Argentina, higher online sales penetration, which reached USD 414 million, and a 17% increase in own-brand sales, totaling USD 660 million. It is worth highlighting revenue growth across all countries where Cencosud operates, further aided by the depreciation of the Chilean peso.
Adjusted EBITDA increased by 11.2% compared to the second quarter of 2023, with the EBITDA margin rising 11 basis points to 9.8%. This improvement is attributed to a reduced impact from hyperinflationary in Argentina, a 105 basis point increase in profitability in Chile, and improved profitability in Peru.
"This quarter, as a Company, we have made significant progress in strengthening our strategic pillars. With discipline and agility, we are focused on accelerating organic growth, fostering innovation and entrepreneurship, enhancing our physical-digital ecosystem, and achieving greater operational efficiencies and profitability," stated Cencosud's CEO, Rodrigo Larraín.
The EBITDA margin for department stores in Chile increased by 420 basis points year-over-year, while shopping centers saw a rise of 270 basis points, reflecting improved sales of discretionary products.
Quarter Highlights
In line with the Company's strategic pillar of organic growth, six new stores were opened in three countries (the United States, Chile, and Argentina), adding 12,468 sqm, including a new location of The Fresh Market in Florida. As of June 2024, the Company had 162 stores in the United States.
As part of its digital strategy, Jumbo opened a new supermarket specializing in omnichannel business on level -5 of Cenco Costanera. This space, over 8,500 sqm, is designed for a 100% e-commerce process with world-class standards and to contribute to improve delivery times, found-rate, and customer experience.
To strengthen its debt maturity profile, Cencosud issued a new international bond for USD 650 million, achieving its lowest risk premium and reflecting its financial strength. The placement was oversubscribed by more than USD 3 billion, more than 4.9 times the amount offered, confirming the confidence of the international financial market in the Company.
"In an environment in which promotional activity has become more relevant, as a result of the challenging economic context, we have managed to defend and even improve our reported margins," added Rodrigo Larraín. He also highlighted the strong performance of other initiatives, such as the regional private label plan, the deployment of Cencosud Media across different businesses, and the monetization of pre-shrinkage and waste reduction through an alliance with startup Cheaf.
Contacts
Beatriz Monreal
beatriz.monreal@cencosud.cl
