Cencosud (CENCOSUD) Q2 2024 earnings summary

Executive summary

• Revenues grew 7.5% year-over-year, driven by supermarket sales, online growth, and market share gains in Chile, with resilience in Argentina despite economic headwinds and hyperinflation.

• Adjusted EBITDA increased 3.7% year-over-year in CLP, but fell 2.7% in USD excluding hyperinflation, with margin improvements in Chile and Peru offsetting lower profitability in Argentina and higher expenses in Brazil and the U.S.

• Net income excluding hyperinflation adjustments rose 44.6% year-over-year to USD 221 million, with reported net income up 75.1%.

• Strategic initiatives included CencoPay expansion, new omnichannel store openings, and sustainability efforts such as the food rescue program.

• The company received multiple awards for digital innovation, customer service, and diversity.

Financial highlights

• Consolidated revenues reached CLP 7,753,761 million (USD 4,160 million), up 7.5% year-over-year; online supermarket sales grew 10.5%.

• Adjusted EBITDA was CLP 778,854 million (USD 395 million), up 3.7% in CLP but down 2.7% in USD; margin declined 99 bps to 9.5%.

• Cash and equivalents decreased 7.8%–13.9% from December 2023 due to higher CAPEX and debt prepayments.

• Private label revenues rose 17% year-over-year, with total penetration at 16.9%.

• Gross profit increased 5.9% year-over-year to CLP 1,161,202 million, with gross margin at 29.9%.

Outlook and guidance

• Focus on accelerating organic growth, innovation, and operational efficiency, with continued investment in omnichannel, digital initiatives, and loyalty programs.

• Ongoing efforts to improve debt maturity profile and maintain financial strength.