Cencosud (CENCOSUD) Q3 2024 earnings summary

Executive summary

• Total revenues grew 4.1% year-over-year (YoY) to USD 4,089 million, with all Chilean businesses showing annual revenue increases and the US posting 14.5% YoY sales growth, driven by online sales and currency effects.

• Adjusted EBITDA declined 4.9% YoY to USD 367 million, mainly due to economic contraction in Argentina and increased competition in Brazil, but excluding Argentina, consolidated EBITDA rose 17.1% YoY.

• Reported net income surged 95.2% YoY, while net income excluding IAS 29 grew 3.4% YoY, supported by favorable exchange-rate effects.

• Distributable net income reached CLP 67,967 million, up 309.5% YoY.

• E-commerce, private label, and retail media continued to drive growth, with notable store openings in the US and Latin America.

Financial highlights

• Gross profit was CLP 1,120,220 million, with a gross margin of 29.4% (down 136 bps YoY).

• Adjusted EBITDA margin was 9.0%, down 86 bps YoY.

• Online sales grew 4.9% YoY, reaching USD 369 million and 9.4% penetration.

• Private label sales rose 14.0% YoY, with 16.2% penetration.

• Net financial debt stood at CLP 4,688,393 million, with net leverage at 2.9x (excluding IAS 29).

Outlook and guidance

• Continued focus on e-commerce, private label, and retail media as growth drivers.

• Strategic plans aim to accelerate growth and profitability, optimize capital use, and strengthen the retail ecosystem.

• Expansion in the US expected to surpass 170 stores soon.