Cencosud, one of Latin America’s leading retail companies, has announced an impressive 15.9% year-over-year increase in revenue for 2024, reaching CLP $16,493,815 million (USD 17,477 million). This robust growth was primarily driven by a strong performance in e-commerce and steady revenue expansion across all its operating markets, with the exception of Argentina, where economic challenges have impacted overall results. The company’s most notable gains were recorded in the United States, Colombia, and Peru, where revenues grew at a double-digit rate in Chilean pesos compared to 2023.
Financial Performance
Cencosud’s Adjusted EBITDA for 2024 amounted to CLP $1,531,193 million (USD 1,622 million), reflecting a solid 10.8% increase compared to the previous year. This growth underscores the company’s continued focus on operational efficiency and profitability, particularly in Chile, the United States, and Peru, which all experienced double-digit Adjusted EBITDA growth. These strong financial results reinforce Cencosud’s commitment to delivering sustainable and profitable growth.
Despite these positive revenue and EBITDA trends, the company reported a decline in net income. In 2024, Cencosud’s net income was CLP $233,683 million (USD 248 million), representing a 20.0% decrease from the previous year. This decline was primarily attributed to the depreciation of the Chilean peso against the U.S. dollar, which negatively impacted non-operating results. Additionally, Argentina’s challenging economic environment further weighed on the company’s overall net income. However, these negative factors were partially offset by a 7.1% increase in operating profit for the year, demonstrating the company’s resilience amid macroeconomic fluctuations.
CEO’s Perspective
Commenting on the company’s performance, Rodrigo Larraín, Cencosud’s CEO, expressed confidence in the company’s strategic direction and its ability to continue delivering value to both customers and shareholders.
“We have concluded 2024 with a renewed focus on our strategy, having strengthened our corporate governance and structures to continue delivering the best value proposition to our customers and driving sustainable and profitable growth for our shareholders,” said Larraín.
Fourth Quarter Performance
Cencosud’s strong performance in 2024 was further highlighted by its exceptional fourth-quarter results. The company reported revenues of CLP $4,822,259 million (USD 5,010 million) for Q4 2024, marking an impressive 46.2% year-over-year increase. This significant growth was driven by robust performances in Chile, Peru, and the United States, coupled with a more stable Argentine peso and lower inflation compared to the same period last year.
One of the key highlights of the fourth quarter was the company’s aggressive expansion strategy. Cencosud successfully opened 10 new stores across four countries, adding over 10,000 m² of new sales space. Among these openings were six The Fresh Market stores in the United States, two Spid stores in Chile, one Jumbo store in Argentina, and one Wong store in Peru. This expansion reflects the company’s commitment to strengthening its market presence and catering to evolving consumer demands.
Adjusted EBITDA for Q4 2024 showed a remarkable 29.9% year-over-year growth, reaching CLP $464,238 million (USD 482 million). The strong quarterly performance was fueled by double-digit growth in the United States, record EBITDA in Peru, and over 100% EBITDA growth in Colombia. Additionally, Cencosud’s department stores in Chile saw an 83.6% increase in Adjusted EBITDA, driven by improvements in the value proposition and increased tourism, which boosted consumer spending.
However, despite these gains, net income for the fourth quarter of 2024 declined by 66.7% to CLP $36,123 million (USD 38 million). This was largely due to the continued depreciation of the Chilean peso against the U.S. dollar and the economic challenges in Argentina, both of which had a significant impact on non-operating results.
Key Achievements in 2024
United States
Cencosud continued to strengthen its presence in the U.S. market by opening six new stores and recording an impressive 23.8% growth in online sales. The Fresh Market chain played a key role in driving revenue growth, supported by a strong digital strategy and an enhanced product offering.
Chile
In its home market, the company focused on optimizing its product mix, expanding private label offerings, and driving innovation. These efforts contributed to an increase in sales and a higher EBITDA margin across all business units.
Colombia
Cencosud achieved a significant milestone in Colombia by doubling its Adjusted EBITDA compared to 2023. This was made possible through improvements in its commercial offering and enhanced operational efficiency, which boosted overall profitability.
Peru
Peru emerged as one of Cencosud’s strongest-performing markets in 2024, achieving its highest annual profitability in the company’s history. The country recorded an EBITDA margin of 11.5%, reflecting strong consumer demand and effective cost management.
Argentina
Despite the challenging economic environment, Cencosud managed to keep operating expenses below year-over-year inflation, showcasing its focus on operational efficiency. Additionally, the company expanded its footprint in Argentina with the acquisition of Supermercados Makro and Basualdo. These strategic acquisitions strengthened Cencosud’s market presence and introduced the Cash & Carry format, further diversifying its retail offerings in the country.
Brazil
In Brazil, Cencosud experienced slight revenue growth amid heightened competition and reduced consumer spending. To optimize its market position, the company divested its Bretas operations in the state of Minas Gerais, aligning with its strategy of focusing on high-growth and high-profitability markets within Brazil.
As Cencosud moves into 2025, the company remains committed to its long-term growth strategy. Key focus areas include expanding its digital capabilities, enhancing customer experience through innovation, and optimizing its store network to meet evolving consumer preferences. Additionally, the company plans to continue its disciplined approach to cost management and operational efficiency, ensuring sustained profitability across all its markets.
Despite macroeconomic uncertainties, Cencosud’s strong financial performance in 2024, coupled with its strategic initiatives, positions the company for continued success in the years to come. With a strong foundation in place, the company is well-equipped to navigate industry challenges and capitalize on emerging growth opportunities in Latin America and beyond.
Cencosud’s 15.9% revenue growth in 2024 underscores the company’s resilience, adaptability, and commitment to delivering value to customers and shareholders alike. Through strategic expansion, digital innovation, and operational excellence, the company has solidified its position as a leader in the retail industry. While challenges such as currency depreciation and economic instability in Argentina remain, Cencosud’s proactive strategies and strong market performance suggest a bright future ahead.
Additional Insights
Beyond its financial results, Cencosud has also placed a strong emphasis on sustainability and corporate social responsibility. In 2024, the company launched multiple initiatives aimed at reducing its environmental footprint, including energy-efficient store designs, waste reduction programs, and investments in renewable energy sources. These efforts align with Cencosud’s long-term vision of creating a sustainable and responsible retail ecosystem.
Furthermore, Cencosud has continued to enhance its digital transformation strategy by investing in artificial intelligence and data analytics to improve customer insights and operational efficiency. The company’s e-commerce platforms saw significant growth in 2024, with a notable increase in online sales and improved logistics capabilities, ensuring faster and more reliable delivery services.
With a strong financial foundation, strategic investments, and a clear vision for the future, Cencosud is well-positioned to maintain its growth trajectory in 2025 and beyond.
