Cencosud Reports Strong Q1 2024 Revenue Growth
In the first quarter of 2024, Cencosud S.A. achieved revenues of CLP $3,938,070 million, marking a 12.4% increase compared to the same period last year. This growth was driven by double-digit increases in the United States, Brazil, Peru, and Colombia.
Online revenue surged by 12.3%, reaching 6.4 million transactions, with notable contributions from the United States and Brazil. Adjusted EBITDA rose by 0.1% overall and by 10.2% when excluding the hyperinflation adjustment in Argentina. Improved profitability in Chile, Argentina, the United States, and Peru, where double-digit EBITDA margins were achieved, contributed to this performance.
Cencosud S.A. announced its first-quarter results, highlighting revenues of CLP $3,938,070 million, a 12.4% increase from the previous year. Key drivers included a 12.3% growth in online sales, a 15.9% increase in private label sales, and a rise in market share in Argentina.
CEO Rodrigo Larraín commented:
“Despite a challenging economic context, we had a strong start to 2024, with revenue growth and improved profitability across several businesses. This increase in sales in Chilean pesos reflects growth in all countries except Argentina.”
Notable highlights include online sales, with significant partnerships with last-mile delivery services in Brazil and the United States, showing sales growth of 110.1% and 56.4%, respectively. The Prime program also saw a 54.4% year-over-year increase in subscribers. The Company’s Own Brands experienced a 15.7% sales growth, led by the Cuisine&Co brand, which expanded to Brazil in Q1 2024.
Net income was reported at -CLP $601 million due to the hyperinflation adjustment in Argentina (IAS 29). Excluding this adjustment, net income grew by 9.1% year-over-year to CLP $170,246 million, supported by a 15.5% increase in operating income, though partially offset by the devaluation of the Chilean peso against the US dollar.
Adjusted EBITDA, excluding the effects of Argentina’s hyperinflation, increased by 10.2%, with an EBITDA margin of 10.6%, up 7 basis points year-over-year. Including the effects of hyperinflation, adjusted EBITDA rose by 0.1%, driven by improved profitability in Chile, the United States, Argentina, and Peru.
The shopping center business also performed well, with net income reaching CLP $60,852 million, an 82.1% increase from Q1 2023. Excluding asset revaluation effects, net income rose by 23.8%. These results were driven by a more than 20,000 m² increase in gross leasable area, higher visitor numbers, and a high occupancy rate of 98.3%.
“We are moving forward with determination and enthusiasm in 2024, strengthening our physical presence through retail stores and leasable areas in shopping centers while continuing to develop our digital capabilities across the region. Our experienced and committed team will continue consolidating Cencosud’s leadership in the region,” said Larraín.
