Results for the Nine-Month Period Ended September, 2023: Cencosud maintains financial strength and increases profits by 3.4%
Cencosud's results for the nine-month period ended September 30, 2023 underscore the Company´s financial strength in a challenging macro environment, with a 3.4% increase in net income to US$ 547 million. During the same period, revenues rose 8.3% to US$ 13,160 million, while Adjusted EBITDA increased 0.5% to US$ 1,352 million.
For the third quarter of the year, the Company reported consolidated revenues of US$ 4,296 million Adjusted EBITDA of US$ 422 million and net income of US$ 176 million.
Cencosud's Interim CEO, Renato Gutiérrez, commented: "During the third quarter, Cencosud continued to deliver solid results, progressing on the key strategic initiatives, while navigating a challenging environment. This good performance reflects the resilience of the Company's core supermarket businesses and our differentiated customer focus."
Revenues for the quarter declined 3.3% year-on-year, mainly explained by lower sales in the Home Improvement and Department Stores businesses. This was partially offset by the strength of Supermarkets in Chile, all businesses in Argentina, together with solid growth of the Cash&Carry format in Brazil and Peru. During the quarter, sales tickets increased 4.4% from the year-ago quarter to 165 million, reflecting the Company's attractive value proposition to customers.
Adjusted EBITDA for the quarter decreased 9.4% yar-on-year, while EBITDA margin reached 9.8%. By contrast, and isolating the effects of foreign exchange fluctuation that affected the period, Adjusted EBITDA would have increased 9.4%.
Online sales penetration increased 8 basis points versus the previous year, driven by growth in Supermarkets and Home Improvement. This brings online penetration to 9.3% of total revenues for the quarter.
During the quarter, sales of Private Brand products accounted for 14.6% of total revenues, with the regional brand Cuisine&Co once again standing out, representing over 50% of total sales of Private Label products.
The Shopping Center business, in turn, delivered growth in local currency in both revenues and Adjusted EBITDA margin throughout the region, with an increase in occupancy rates and customer traffic flow.
In terms of store openings, 22 new stores and more than 8,000 m2 of sales floor space were added during the quarter, including 2 Prezunic stores in Brazil, 18 SPID in Chile, a Jumbo in Colombia and a The Fresh Market store in the U.S. Through September 2023, the Company invested a total of US$ 299 million in Capex, including organic growth, store and mall remodeling, investments in the digital ecosystem and logistics developments.
Cencosud is one of the largest and most prestigious retailers in the Americas, with operations in Argentina, Brazil, Chile, Peru, Colombia, and the United States -in addition to a commercial office in China and a technological Hub in Uruguay- where it develops a successful multi-format strategy that today employs more than 120 thousand people. Its operation encompasses several business lines, such as Supermarkets, Home Improvement, Department Stores, Shopping Centers and Financial Services.
Additionally, Cencosud operates complementary businesses such as Cencosud Media and Cencosud Ventures, all of which are known for their quality, excellent level of service, and focus on customer satisfaction. For more information, please visit www.cencosud.com.
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