Ripley Corp (RIPLEY) Q2 2024 earnings summary

Executive summary

• Revenue increased by 9.2% year-over-year in Q2 2024, reaching $514,037 million, driven by discretionary consumption recovery in Chile and Peru, Mall Aventura expansion, higher real estate income in Peru, and favorable currency effects.

• Retail Peru revenue increased 22% in CLP, with a positive trend from mid-May and currency appreciation effects.

• Retail Chile revenue rose 5.6% year-over-year, supported by strong Mother's Day and Cyberday events and winter product lines.

• Mall Aventura segment revenue surged 76% year-over-year, reflecting new mall openings and over 50% GLA expansion.

• Gross margin rose 676 basis points to 33.4%, reflecting margin improvements in banking (Chile), retail (Chile and Peru), and real estate (Peru).

Financial highlights

• EBITDA reached a record $39,807 million, up $46,154 million YoY, with margin expanding 909bps, marking the highest Q2 EBITDA on record.

• Gross profit rose 37% year-over-year to $171,588 million.

• Operating income reached CLP 19.96 billion, reversing a loss in the prior year.

• Net income before taxes was CLP 7.82 billion, compared to a loss in Q2 last year; net income grew by $30,622 million YoY to $11,125 million.

• SG&A increased 1.0% YoY; expense leverage improved to 29.5% from 31.9%.

Outlook and guidance

• Revenue growth expected to continue, supported by expanded mall operations, improved retail performance, and ongoing investment in omnichannel experience and efficiency.

• Ongoing focus on efficiency, pricing, and inventory management to sustain profitability.