Forus (FORUS) Q3 2024 earnings summary

Executive summary

• Achieved record third-quarter consolidated revenue of CLP 79,989 million, up 9.9% year-over-year, the highest in company history.

• Subsidiary revenues grew 19.4% year-over-year, now representing about 31% of total consolidated sales, with DTC and digital channels outperforming.

• Direct-to-consumer (DTC) channel accounted for 77% of total sales, with DTC revenue up 12.8% year-over-year and digital sales up 32.7%.

• EBITDA decreased 14.2% year-over-year to CLP 9,203 million, with margin pressure from a 282 bps decline in gross margin.

• Construction began on a new distribution center in Chile, representing a US$17 million investment.

Financial highlights

• Gross margin declined to 52.4% from 55.2% year-over-year, pressured by CLP depreciation and higher freight costs.

• Operating income was CLP 3,234 million, down 31.3% year-over-year, with operating margin at 4.0%.

• Net income attributable to shareholders fell 56.4% year-over-year to CLP 2,104 million, impacted by FX losses and lower non-operating income.

• Digital revenues rose 15.8% year-over-year, representing 23% of DTC sales and 18% of consolidated revenue.

• Non-operational losses increased due to currency volatility, with non-operational result at CLP (152) million versus CLP 2,126 million last year.

Outlook and guidance

• Focus remains on profitable growth, talent, technology, and infrastructure investments, with caution regarding risks and uncertainties.

• New distribution center in Chile to support future growth and improve logistics efficiency.