Cencosud's revenues increased 12.4% in the first quarter of 2024

Cencosud S.A. reported today its first-quarter results, with revenues of CLP $ 3,938,070 million, an increase of 12.4% compared to the same period of the previous year. Among business categories with solid performance, double-digit growth in online sales (12.3%), the penetration of private label sales in the region (+15.9%), and the increase in market share in Argentina stand out.

"Despite a challenging economic context, we were off to a strong start in 2024, with revenue growth and improved profitability in several businesses. This increase in sales in Chilean pesos is the result of the increase in all countries, except for Argentina," commented Rodrigo Larraín, CEO of Cencosud.

Among the highlights of the period are online sales, with alliances with the last milers in Brazil and the United States (showing sales growth of 110.1% and 56.4% in CLP, respectively). At the same time, Prime program subscribers continued to grow (+54.4% YoY). The Company's Own Brands recorded sales growth of 15.7% YoY, with the Food category driving the highest sales, led by the Cuisine&Co brand, which continued developing its regionalization strategy by reaching Brazil during the first quarter of 2024.

Net income stood at -CLP $601 million due to the hyperinflation adjustment in Argentina (IAS 29). Excluding that item, net income grew 9.1% compared to the same period of the previous year, reaching CLP $170,246 million due to an operating income of 15.5%, partially offset by the negative impact of the devaluation of the Chilean peso against the US dollar.

Adjusted EBITDA increased 10.2%, excluding the effects of Argentina's hyperinflationary economy, and EBITDA margin reached 10.6%, up 7 bps year over year. Including the accounting effect of Argentina, adjusted EBITDA grew 0.1%, due to improved profitability in Chile, the United States, Argentina and Peru.

During the period, the solid financial and operational performance of the shopping center business also stood out, with net income reaching CLP $60,852 million, up 82.1% compared to the previous year's first quarter. Net income was up 23.8%, excluding the effect of asset revaluations. These positive results are mainly explained by the increase in gross leasable area by more than 20,000 m2, an increase in visits, and the maintenance of one of the highest occupancy rates in the industry at 98.3%.

"We are moving forward with determination and enthusiasm this 2024, in which we will strengthen our physical proposition through retail stores and leasable areas in shopping centers, along with the continued development of digital capabilities across the region. We have an experienced and committed team to continue consolidating Cencosud's leadership in the region," concluded Larraín.