The holding company multiplied EBITDA by 2.3 times compared to the first quarter of 2023, reaching an EBITDA margin of 10.4%. "We are pleased to report that the correct execution of our customer-focused strategic plan is progressing favorably, which has allowed us to improve our main indicators, despite a depressed consumption scenario in most countries in the region," said the CEO.
The Chilean retail group Falabella reported this Tuesday that it posted a profit of $58.5 billion pesos (US$59.5 million) in the first quarter, after reporting a loss of US$64 million in the same period of the previous year.
The total income of Falabella, whose business network extends to Argentina, Brazil, Colombia, Mexico, Peru and Uruguay, totaled US$3,198 million in the period, the company said in a statement, with an increase of 4.2% compared to the first three months of 2023.
"Continuing with the improvements in results achieved at the end of 2023, we are pleased to report that the correct execution of our customer-focused strategic plan is progressing favorably, which has allowed us to improve our main indicators, despite a depressed consumption scenario. in most countries in the region" expressed Alejandro González, General Manager.
In 1Q24 we obtained an EBITDA of US$302 MM (2.3 times vs 1Q23), achieving an EBITDA margin of 10.4% (+575 bp vs 1Q23) and a profit of US$60 MM (vs a loss of US$55 MM in 1Q23).
These good results are explained by a better value offer, which translated into an improvement in gross margins of 463 bp and an inventory reduction of 11%, as well as the increase in visits to its shopping centers, the company highlighted.
In the banking business, improvements were also seen. In Chile, our largest operation, the delinquent portfolio of more than 90 days reaches 3.5% (vs. 4.0% in 4Q23). In addition, Banco Falabella issued about 600 thousand cards and transactional accounts per quarter in the region, "which demonstrates our ability to attract new customers with a simple, digital and intuitive proposal," indicated the CEO.
"During April, we announced the closing of the transaction with Mallplaza, which will allow us to consolidate our shopping center operations in Peru. With this new structure, Mallplaza will become the largest shopping center operator in South America in terms of GLA, which we Added to this is the opening of Mallplaza Cali in March of this year. For its part, visits to our shopping centers grew 3% year over year," González said.
In e-commerce , seller sales grew 9% year-over-year, reaching 25% of the online GMV.
"In addition, more than 45% of deliveries are made through Click & Collect and close to 70% of our retailers ' deliveries are made in less than 48 hours. Regarding physical channels, during the quarter, "We continue to see improvements in sales levels, highlighting the growth of same store sales (SSS) of Falabella Retail in Chile, which is greater than +6.4% year-on-year," reported Alejandro González
The level of debt in the non-banking business, measured as Net Financial Debt over EBITDA, was reduced to 5.7x (vs. 6.5x in 4Q23), strongly driven by the improvement in the profitability of the business (1.9x non-banking EBITDA vs 1Q23). Added to the above is a solid cash position of US$967 MM (+US$432 MM vs 1Q23).
The company also highlighted its Net Zero 2035 commitment in Scope 1 and 2, highlighting the 20% reduction of controlled emissions compared to 2021, along with reaching 73% of electricity supply from renewable sources.
"This quarter's achievements reinforce our determination to enhance the customer experience and strengthen our profitability. I am convinced that with the omnichannel strategy and continuous adaptability, we will continue to anticipate customer needs and meet the expectations of our shareholders" González concluded. .
