- 4Q Adjusted EBITDA grew 35.1% with a double-digit increase across Shopping Centers, Department Stores and Home Improvement
- EBITDA margin improved 235 bps reaching 9.3%, the highest in the last 3 years
- Gross margin expands to 29.7% on revamped commercial strategy
- Net profit increased 86.6%, reaching CLP 187,535 million
- Net debt to Adjusted EBITDA falls to 2.8 times, excluding non-recurring items
SANTIAGO, CHILE / ACCESSWIRE / March 3, 2016 / Cencosud S.A. (BCS: CENCOSUD; NYSE: CNCO), a leading South American retailer with operations in Chile, Argentina, Brazil, Peru and Colombia, today announced its consolidated financial results for the fourth quarter and full year 2015. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with IFRS. Variations refer to the comparison between 4Q15 and 4Q14.
- Revenues increased 1.1% to CLP 3.0 trillion; positive SSS in all countries except Brazil were masked by the depreciation of the Brazil real and Colombian peso against the Chilean peso.
- Gross profit rose 8.1% to CLP 905 billion, led by Home Improvement and Department Stores, as the Company's new commercial strategy helped lower cost of goods sold.
- Gross margin was 29.7%, an expansion of 190 basis points from the fourth quarter of 2014.
- SG&A costs fell slightly to CLP 682.7 billion as the Company completed its cost-cutting program.
- Adjusted EBITDA grew 35.1% to CLP210.5 billion, with double digit increases in Shopping Centers, Department Stores and Home Improvement. Adjusted EBTIDA margin expanded 235 basis points to 9.3%.
- Net income grew 86.6% to CLP187.5 billion, with strong growth in operating income partially offset by higher financial costs and exchange-rate losses.
Please visit http://www.cencosud.com/en/inversionistas/ to obtain the full fourth quarter earnings release, including financial results and tables.
Management Comment
Results for the fourth quarter of 2015 demonstrate our unique position as a market leader in South American retail, as well as the success of our new management team's strategy. The Company delivered strong year-on-year growth in our quarterly results, in spite of unfavorable economic conditions and softening consumer demand in key regions of operation. Crucial to this was the new commercial strategy and SG&A savings program implemented in the second half of 2015, which drove double digit growth in adjusted EBITDA, and exponential growth in net income. In addition, our careful management of our financial position led to net debt to adjusted EBITDA falling to 2.8 times, excluding certain items, as we rapidly deleveraged our balance sheet.
We are proud to conclude 2015 with excellent results and are looking forward to another solid year in 2016, despite headwinds from the macroeconomic environment. Our revamped commercial strategy and SG&A savings program means we enter the year with a sustainable increase in gross margin and a smaller expense base. As a result, we are confident we can grow revenue and meet our guidance adjusted EBITDA margin of 7.2% to 7.4% in 2016.
Conference Call
The Company will host a conference call to discuss these results on Monday, March 7th, 2016 at 11 AM Chilean time/ 9:00 AM EST. The conference call-in details are provided below. To participate on the day of the call, dial 1- 877-407-8031 or 1- 201-689-8031 approximately ten minutes before the call and tell the operator you wish to join the Cencosud Conference Call. A webcast of the conference call will be available online at www.cencosud.com/en/inversionistas.
About Cencosud S.A.
Cencosud is a leading multi-brand retailer in South America, headquartered in Chile and with operations in Chile, Brazil, Argentina, Peru and Colombia. The company, founded by Chairman Horst Paulmann, operates in supermarkets, home improvement stores, shopping centers and department stores, always aiming to deliver the right product at the right price to Latin America's growing middle class. In 2012, the company listed American Depositary Receipts on the New York Stock Exchange.
Forward-Looking Statements:
In addition to historical information, this release contains "forward-looking statements" that reflect management's expectations for the future. The forward-looking statements included herein represent Cencosud's views as of the date of this release. A variety of important factors could cause results to differ materially from such statements. These factors are laid out in Cencosud's filings with the SVS in Chile and the SEC in the United States. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.
Corporate Communications
Andrea Brajovic
Phone +5622959 0024
andrea.brajovic@cencosud.cl
Investor Relations
Marisol Fernandez
Phone +5622959 0545
Mariasoledad.fernandez@cencosud.cl
Natalia Nacif
Phone +5622959 0368
natalia.nacif@cencosud.cl
SOURCE: Cencosud S.A.
