Ripley Corp (RIPLEY) Q4 2024 earnings summary

Executive summary

• Achieved record profit and margin expansion in 4Q24 and 2024, driven by strong December retail performance, efficiency gains, and real estate expansion in Peru, aided by currency appreciation.

• Revenue and EBITDA reached historic highs, with significant margin improvements across segments and record December sales (excluding 2021).

• Mall Aventura issued a PEN 400 million (USD 107 million) bond, the largest Peruvian corporate issuance since 2019, to refinance liabilities and fund 2025 obligations.

• Net income excluding fair value effects grew by CLP 39,154 million in 4Q24 and CLP 120 billion in 2024, driven by banking and retail performance and cost control.

Financial highlights

• 4Q24 revenues rose 8.7% YoY to CLP 644,103 million; full-year 2024 revenues up 8.3% YoY to CLP 2,086,829 million.

• Gross margin expanded by 697bps in 4Q24, with gross profit up 34.6% YoY; 2024 gross profit margin at 34.3%.

• EBITDA for 4Q24 increased fivefold YoY to CLP 79,705 million (12.4% margin); 2024 EBITDA up CLP 190 billion YoY to CLP 173,241 million (8.3% margin).

• Net income for 4Q24 was CLP 39,154 million (+195.3% YoY); 2024 net income was CLP 54,051 million (vs. loss in 2023).

• Administrative and selling expenses fell 2.3% YoY in 4Q24 and 0.5% in 2024, improving expense-to-sales ratios.

Outlook and guidance

• Focus remains on efficiency, productivity, and inventory management to sustain profitability.

• 2025 investment plan of CLP 38.5 billion (+18% YoY), with 49% for omnichannel, technology, and logistics, and CLP 19.6 billion for store maintenance, remodeling, and shopping center expansion.

• Continued growth expected from Mall Aventura’s new shopping centers and retail initiatives.

• Emphasis on growing customer base, profitability, and cash flow in a gradually recovering macroeconomic environment.