Chilean multi-format retailer Cencosud has reported a consolidated revenue of 4.03trn pesos ($4.31bn) in the first quarter (Q1) of fiscal year 2025 (FY25), marking a 2.4% ascent from the corresponding period in 2024.
The uptick is attributed to increased revenue in Chile, the US, Argentina, and Peru, alongside a notable leap in digital transactions surpassing seven million transactions, culminating in an 8.8% rise in sales from the previous year.
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The company observed substantial online sales growth over the quarter in the US and Peru, with increases of 30% and 44%, respectively.
Chile also recorded a robust performance with a 7.5% rise in e-commerce sales year-over-year (YoY) during the first quarter of 2024, despite comparisons to a leap year and Easter celebrations occurring in March of 2024.
Cencosud’s net income for the quarter was reported at 126.44bn pesos, recovering from a net loss of 601m pesos in the same quarter of the preceding year.
Driven by enhanced operational efficiency and margin growth in Chile, Peru, and Colombia, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Cencosud reached 376.117bn pesos, up by 10.4% from the prior year quarter.
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By GlobalDataThe EBITDA margin improved by 68 basis points YoY to reach 9.3%.
Cencosud CEO Rodrigo Larraín said: “We have reinforced a disciplined capital allocation strategy across all countries and business lines. This approach allows us to pursue profitable growth, focused on innovation, digitalisation, and the adoption of technological tools that enhance our customer value proposition and boost operational productivity.”
The Retail Ecosystem, integral to Cencosud’s strategy, has been pivotal in fostering new technological advancements, innovations, and revenue streams.
The quarter’s notable developments included a rise in the market share of Private Label products, which accounted for 17.3% of overall sales, marking an increase of 69 basis points from the previous year. This growth was primarily driven by the Food segment, particularly through the Cuisine&Co brand.
Additionally, the period saw the introduction of new nonfood brands, with Hydrum debuting a range of hydration accessories including bottles and mugs, and Cross Check unveiling a new line of luggage products.
The Shopping Centre division continued its upward trajectory as well.
In Chile alone, revenues climbed by 10.5%, with an EBITDA margin reaching 81.2%, reinforcing one of the highest occupancy rates in the market at 98.5%.
“Our $610m investment plan for 2025 is progressing as planned, including strategic openings, real-estate projects, and a strong emphasis on digitalisation and technology,” Larraín added.
In February this year, Cencosud agreed to sell its Bretas supermarket assets in the state of Minas Gerais, Brazil for $716m reals.
