Cencosud (CENCOSUD) Q4 2024 earnings summary

Executive summary

• Opened 6 new The Fresh Market stores in the US, adding 6,800 sqm of sales space; continued expansion in Chile and Peru.

• Acquired Makro & Basualdo in Argentina (28 stores, $450M LTM sales, USD 122.5M purchase); sale of Bretas assets in Brazil (54 stores, $270M LTM sales, ~USD 123M), both subject to regulatory approval.

• Entered a new credit card partnership with Bradesco in Brazil, generating CLP 18,177M in revenue.

• Paris Parade in Chile attracted 1.5M attendees, reinforcing brand engagement.

• All Chilean businesses saw improved performance, driven by value proposition enhancements and increased tourism.

Financial highlights

• 2024 revenues grew 5.5% YoY to CLP 16.1T (excl. IAS 29); adjusted EBITDA up 10.8% to CLP 1.6T.

• 4Q24 revenues rose 1.7% YoY to CLP 4.5T (excl. IAS 29), driven by growth in Chile, US, and Peru; reported 4Q24 revenues up 46.2% YoY due to reduced hyperinflation impact in Argentina.

• Adjusted EBITDA for 4Q24 up 29.9% YoY (reported); excluding IAS 29, down 16.7% YoY, but up 3.3% YoY excluding Argentina.

• Annual net distributable income fell 29.5% YoY to CLP 136,219M; 4Q24 net income fell 66.7% YoY to CLP 36,123M, mainly due to FX devaluation, asset revaluation in Argentina, and higher taxes.

• Online sales penetration reached 10.1% in 4Q24, with 8 million online tickets and USD 453 million in online sales.

Outlook and guidance

• 2024 revenue guidance: CLP 16.5T (+6.2% vs. actual); EBITDA guidance: CLP 1.4T (-2.5% vs. actual).

• 2025 guidance targets revenues of USD 17.95B and EBITDA of USD 1.87B, with USD 610M capex planned for 28 new stores and 7 shopping center expansions/remodels.

• Focus on organic growth, innovation, digital ecosystem, new income sources, and operational efficiency.