Cencosud (CENCOSUD) Q3 2025 earnings summary

Executive summary

• Launched a five-year strategic plan focused on simplification, agility, and technology-driven efficiency, incurring extraordinary expenses to enable long-term profitability and competitiveness.

• Completed full acquisition of The Fresh Market for USD 295 million, expanding U.S. presence and aligning with long-term strategy, funded by local bond issuance.

• Advanced productivity plan implementation, generating a CLP 45 billion extraordinary effect, mainly in Chile and Argentina, aimed at streamlining operations and generating future savings.

• Expanded retail footprint with new store openings in Chile, Brazil, Colombia, and digital initiatives, including AI-powered search and new apps.

• Sold and transferred Bretas stores in Brazil, optimizing the store portfolio.

Financial highlights

• Consolidated revenues rose 6.1% year-over-year (5.1% reported, 6.1% excluding Argentina's inflation adjustment), with growth in most markets except Brazil.

• Online sales grew 11.9% year-over-year, with four of six countries posting double-digit growth and penetration reaching 10% of total sales.

• Adjusted EBITDA margin expanded in the U.S., Brazil, Peru, and Colombia, but was offset by extraordinary productivity plan expenses and higher costs in Chile and Argentina; overall adjusted EBITDA margin (excluding extraordinary expenses) was 8.2%.

• Net distributable income for the nine-month period increased 41.4% year-over-year, despite a negative quarterly result due to extraordinary expenses and higher financial costs.

• Private label sales penetration reached a record 17.9%, with $681 million in sales during the quarter, up 118 bps year-over-year.

Outlook and guidance

• Management expects the productivity plan to yield a payback within one year, with further improvements in profitability anticipated across several countries.

• Continued focus on organic expansion, digital transformation, and operational synergies, with ongoing store openings and format innovation.

• Improved debt maturity profile and limited foreign currency exposure, with only 5.8% of USD-denominated debt unhedged after natural hedges.

• Cautious optimism for Argentina and the U.S. as macro conditions improve and new store openings mature; further guidance to be provided in 2026.