Cencosud (CENCOSUD) Q2 2025 earnings summary

Executive summary

• Revenue grew 7.2% year-over-year, with all business units outpacing inflation and strong performances in Chile, Argentina, the US, and Colombia, while Brazil saw a decline due to store exits and competition.

• Adjusted EBITDA margin expanded in the US, Brazil, Peru, and Colombia, while Argentina saw contraction due to lower inflation and integration costs; overall, margin expansion was seen in most countries.

• Distributable Net Income for 2Q25 was CLP 69,750 million, up 494% year-over-year, driven by lower hyperinflation impact in Argentina and a 4.9% gross profit improvement.

• Major events included debt refinancing, a share buyback of up to 1.5% of shares, and the sale of service stations in Colombia and Bretas stores in Brazil.

• Advanced transformation, sustainability, and digital talent initiatives, and recognized as the number one citizen brand in Chile.

Financial highlights

• Consolidated revenue reached CLP 4,171,343 million, up 7.2% year-over-year excluding Argentina hyperinflation.

• Adjusted EBITDA rose 1.3% year-over-year excluding hyperinflation, with margin at 9.0%.

• Distributable Net Income for H1 2025 reached CLP 170 billion, up 494% year-over-year.

• Cash position at quarter-end was $727 million.

• Online sales reached CLP 420,514 million, up 7.8% year-over-year; Private Label penetration at 18%, with $717 million in consolidated sales, up 12% year-over-year.

Outlook and guidance

• Focus remains on executing key initiatives, driving growth and profitability opportunities for the future with a disciplined, long-term strategic vision.

• Plans to continue expansion with five new stores opened in the region and new office and retail spaces added.

• Transformation Department established to accelerate strategic projects and optimize capital use.

• Committed to reducing gross leverage to a long-term target of 3x.