SANTIAGO, Chile--(BUSINESS WIRE)--Cencosud S.A. reported positive results for the third quarter of the year. These results were driven by the development of its Own Brands, a category that increased its penetration by 14.0% year-over-year, as well as higher-than-inflation sales growth in the United States. The results were also bolstered by retail ecosystem-related businesses, with notable growth in online sales, a 55% increase in customers subscribed to Prime programs, and a 49.1% increase in Cencosud Media sales.
In the third quarter, the Company reported a Net Income of CLP $88,384 million (USD 95 million), an increase of 95.2% compared to the same period last year. Meanwhile, Distributable Net Income, which serves as the basis for dividend distribution, increased by 309.5%, totaling CLP $67,967 million (USD 73 million).
Reported revenue reached CLP $3,770,679 million (USD 4,049 million), a decrease of 1.4% compared to the same quarter of 2023, mainly due to adjustments required by the IAS 29 accounting standard on hyperinflation in Argentina. However, excluding the adjustment for hyperinflation in Argentina, revenue recorded an interannual expansion of 4.1%. This result took place in a favorable context in Chile, where all business units reported growth, driven by a partial recovery in consumption and an increase in tourist traffic.
Adjusted EBITDA rose by 0.8% compared to the third quarter of 2023, and the EBITDA margin increased by 20 basis points, reaching 9.0%. Excluding Argentina from Cencosud’s consolidated EBITDA, the Company would have achieved an increase of 17.1%, mainly driven by improved profitability in Chile and Peru.
“This quarter, we continued to strengthen our competitive position in various markets, with a focus on customer service and experience, innovation, growth, and profitability,” stated Rodrigo Larraín, CEO of Cencosud.
During the third quarter, Chile saw revenue growth across all business units compared to the same period last year, including the Home Improvement segment, which had reported year-over-year declines for nine consecutive quarters. The supermarket segment in Chile stood out with 3.8% revenue growth, primarily due to increased online sales and an increase in Jumbo Prime subscribers. The physical channel showed resilience despite the slowdown in food inflation.
Regionally, Cencosud maintained sustained growth despite facing a moderated consumption environment in Brazil and Colombia. In Argentina, the Company managed to narrow the gap between annual inflation and revenue growth, in addition to increasing its market share in supermarkets by 21 basis points. In Peru, profitability also improved.
“Despite the economic challenges in the various countries, we remain enthusiastic and focused on the opportunities we see across the markets. We are refining our strategic plans and initiatives to accelerate growth and profitability, optimize capital use, and build the capabilities and ecosystem needed to continue leading and innovating in the industry, always counting on the loyalty and preference of our customers,” concluded Larraín.
Key Highlights
During the quarter, Cencosud ranked first in the Merco Talento 2024 ranking as the best company in the “Corporate Holding Sector”. Additionally, the Company climbed three positions in the general ranking, reaching position 14, highlighting its effectiveness in attracting and retaining talent in a competitive environment.
Moreover, Jumbo and Easy in Chile were recognized in the 2024 Procalidad National Customer Satisfaction Awards. Jumbo took first place in the supermarket category, while Easy excelled in the Home Improvement category, underscoring the recognition of both brands as the most valued in their respective categories, reflecting their commitment to customer satisfaction.
The Company opened five new supermarkets during the quarter, capturing opportunities in priority formats and regions. Notably, this included the opening of a GIGA store in Sao Paulo, Brazil, and a The Fresh Market store in Florida, USA. In addition, as a post-quarter event in October, two additional The Fresh Market stores opened to the public in the states of Maryland and Illinois, USA.
About Cencosud
Cencosud is one of the largest and most prestigious retailers in the Americas, with operations in Argentina, Brazil, Chile, Peru, Colombia, and the United States -in addition to a commercial office in China and a technological and digital Hub in Uruguay- where it develops a successful multi-format strategy that today employs more than 100 thousand people. Its operation encompasses several business lines, such as Supermarkets, Home Improvement, Department Stores, Shopping Centers and Financial Services.
Additionally, Cencosud operates complementary businesses such as Cencosud Media, Cencosud Ventures and CencoPay, all of which are known for their quality, excellent level of service, and focus on customer satisfaction. For more information, please visit www.cencosud.com
