During the period, the Company opened six new stores in three countries (United States, Chile and Argentina), highlighting a new The Fresh Market location in the State of Florida.
Cencosud SA today reported its second quarter results with a profit of CLP $109,777 million (USD 117 million), which implies an increase of 75.1%, compared to the same period of the previous year.
Revenue, meanwhile, increased 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, the increase in the market share of this same business unit in Argentina, the increase in the penetration of online sales - which reached USD 414 million in the period - and the 17% increase in sales of own brands, reaching USD 660 million. The growth in income in all the countries where Cencosud operates stands out, additionally explained by the depreciation of the Chilean peso.
For its part, adjusted EBITDA grew 11.2% compared to the second quarter of 2023, while the EBITDA margin increased 11 basis points to 9.8%. This increase is explained by the lower impact of the hyperinflationary economy in Argentina y/y, the increase in profitability by 105 basis points in Chile and by the improvement in profitability in Peru.
“This quarter, as a Company, we have made important progress in strengthening our strategic pillars. We are focused, with discipline and agility, on accelerating organic growth, promoting innovation, entrepreneurship, strengthening the physical-digital ecosystem and achieving greater operational efficiencies and profitability,” said the General Manager of Cencosud, Rodrigo Larraín.
Regarding business performance, the increase in the EBITDA margin of department stores (+420 basis points year-on-year) and shopping centers in Chile (+270 basis points year-on-year) stands out, reaffirming the improvement in product sales discretionary.
Relevant events of the quarter
In line with the Company's strategic pillar of organic growth, in the second quarter of 2024, six new stores were inaugurated in three countries (United States, Chile and Argentina), in which 12,468 m2 were added, including a new The Fresh location. Market in the State of Florida. In the United States, the company reached 162 stores as of June 2024.
Associated with the digital strategy, Jumbo opened a new supermarket specialized in omnichannel business of more than 8,500 m2 in Cenco Costanera, on level -5. It is a room designed for a 100% e-commerce process, with world-class standards, and in order to contribute to the improvement in delivery times, found-rate and customer experience.
Furthermore, with the objective of continuing to strengthen its debt maturity profile, Cencosud issued a new international bond for USD 650 million, achieving the lowest risk premium in its history, a reflection of financial solidity. The placement had a demand that exceeded USD 3,000 million, 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 relevant, as a result of the challenging economic context, we have managed to defend, and even improve, our reported margins,” added Rodrigo Larraín. Likewise, the executive highlighted the good performance of other Company initiatives such as the regional own brands plan, the deployment of Cencosud Media in the different businesses, as well as the profitability of pre-shrinkage and waste reduction through the alliance. with the startup Cheaf.
