SANTIAGO, Chile, May 30, 2013 /PRNewswire/ -- Cencosud S.A. (NYSE: CNCO), a leading multi-format Latin American retailer with presence in five countries, announced today its consolidated financial results for the first quarter of 2013. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with International Financial Reporting Standards (IFRS). Variations refer to the comparison between the 1Q2012 and 1Q2013.
First quarter highlights:
- Cencosud revenue increased 14%, driven by the consolidation of the Colombian supermarket operation, as well as positive SSS in almost every division and country. Moreover, Cencosud added 179 stores versus 1Q12, with an increase of 24% in selling space.
- Gross profit rose 14.3% in CLP, driven by a 14.8% increase in the supermarket division, and double-digit increases in every division except financial services, which saw a small decrease.
- Gross margin remained steady at 27.9%, despite the consolidation of the Colombian supermarket operation, which had a gross margin of 19.5% compared to an average of 24.4% for Cencosud's overall supermarket business.
- Adjusted EBITDA totaled CLP 152,848 million, up 5% on improved results from the Shopping Centers division and the consolidation of the Colombian supermarket operation. These factors were partially offset by a lower performance from the financial service division, which made a CLP 20,000 million provision to cover claims related to credit card fees. Excluding the provision effect, consolidated adjusted EBITDA increased 19% versus 1Q12. In the case of Chilean department store adjusted EBITDA grew 86% YoY.
- Cencosud entered the Peruvian department store market, with the opening of its first Paris store in Arequipa.
- Cencosud's Annual Ordinary Shareholders Meeting took place and a new Board of Directors was elected. The Board is composed of three members of the controlling family, Mr. Horst Paulmann, Mr. Peter Paulmann and Mrs. Heike Paulmann. The Shareholders Meeting also elected members representing the countries where Cencosud has operations: Mr. Cristian Eyzaguirre (Chilean), Mr. Roberto Philipps (Argentine), Mr. Erasmo Wong (Peruvian) and Mr. Julio Moura (Brazilian). The Board group also includes two representatives of minorities' shareholders elected by the votes of AFP (Chilean Pension Funds): Mr. David Gallagher and Mr. Richard Buchi.
- The Company concluded the preemptive rights period of its Capital increase, with 299,688,946 shares subscribed and paid by existing shareholders. The Capital increase was approved at an Extraordinary Shareholders Meeting on November 20, 2012. As of March 31, 2013, the Company had a total of 2,806,792,161 shares outstanding.
Management comment:
"The first quarter of 2013 was very important for Cencosud, we consolidated for the first time our newly acquired supermarket operation in Colombia, while we also entered the Peruvian department store market with a Paris store," said Daniel Rodriguez, CEO of Cencosud. "Operationally, Cencosud made significant progress in its strategy in the first quarter, with double digit growth in revenue and gross margin, driven by positive SSS in almost every division as well as an expanded footprint. We also continue the turnaround of units including our Brazilian supermarket operation, which posted positive SSS, and the Johnson department store, which saw gross margin reach 29.7%. On the financial side, our recent capital increase and strong cash flow generation allowed us to repay a loan taken out to finance our Colombian acquisition, helping us to lower net debt/ EBITDA to 3.7x, from 4.6x at the end of 2012.
"Looking ahead, we will focus on integration and efficiency in our recent acquisitions, including rebranding our Colombian supermarket operation, while continuing the process of deleveraging to further strengthen our balance sheet," Mr. Rodriguez concluded.
Consolidated Revenue
Consolidated revenues were CLP 2,468 billion in the first quarter 2013, compared with CLP 2,169 billion in the first quarter of 2012, a 14% increase YoY.
- Supermarket revenues in 1Q13 increased 15.3%, reaching CLP 1,863 billion, driven by the consolidation of Supermarkets Colombia, positive SSS and the net opening of 73 new supermarkets in the region since March 2012. Total supermarket selling space rose 9%, excluding the acquisition of Carrefour, and 35% including supermarkets in Colombia.
- Home Improvement revenues increased 7.7%, reaching CLP 279 billion in 1Q13. The growth reflects a 7.2% SSS increase in Chile and the net opening of two Easy stores. The results were partially offset by lower revenues from Colombia, due to the appreciation of the Chilean peso and the impact of competition in Colombia, which resulted in low single digit negative SSS.
- Department Store revenues totaled CLP 206 billion, up 11.4%, driven by a strong performance in Chilean operations. Paris and Johnson had sales growth of 10.3% and 18.0% respectively, and a SSS increase of 4.9% (including Johnson)
- Shopping Center revenues grew 34.1%, reaching CLP 44 billion driven by two new shopping malls in Chile (Costanera and Osorno), the continuing development of the shopping center business in Peru and the inclusion of Colombian real estate operations.
- Financial Services operations remained stable with revenues rising 0.1%, to CLP 73 billion, reflecting the integration of Colombian financial services and higher revenues from Peru, offset by lower revenues from Chile.
Please visit www.cencosud.com/inversionistas.htm to obtain the full first quarter earnings release.
The company will hold a conference call to review the 1Q13 results on Friday, May 31, 2013 at 15:00 pm Santiago/Eastern Time with a live webcast available through its website. The conference call dial-in is +1(866) 652-5200 or +1(412) 317-6060. A webcast of the conference call will be available online at http://www.cencosud.com/eng/inversionistas.htm.
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 (ADRs) on the New York Stock Exchange.
Corporate Communications
Andrea Brajovic
Phone: +56-2-2959-0024
Email andrea.brajovic@cencosud.cl
Investor Relations
Maria Soledad Fernandez
Phone: +56-2-2959-0545
Mariasoledad.fernandez@cencosud.cl
Natalia Nacif
Phone: +56-2-2959-0368
natalia.nacif@cencosud.cl
CONSOLIDATED INCOME DATA | ||
(In millions of Chilean pesos as of March 31st, 2013) | ||
First Quarter | ||
2013 | 2012 | |
CLP MM | CLP MM | |
Net revenues | 2,468,439 | 2,168,909 |
Cost of sales | - 1,779,460 | - 1,566,107 |
Gross profit | 688,979 | 602,802 |
Selling and administrative expenses | - 597,549 | - 483,892 |
Other income by function | 16,868 | 22,419 |
Other gain (Losses) | 9,111 | - 8,239 |
Operating income | 117,409 | 133,091 |
Participation in profit or loss of equity method associates | 1,356 | 1,100 |
Financial Income | 1,546 | 2,808 |
Finance Costs [for Non-Financial Activities] | - 69,941 | - 49,784 |
Income (loss) from foreign exchange variations | - 2,283 | 6,619 |
Result of indexation units | - 2,843 | - 8,647 |
Non-operating income (loss) | - 72,165 | - 47,904 |
Income before income taxes | 45,244 | 85,186 |
Income taxes | - 25,039 | - 28,311 |
Profit (Loss) | 20,063 | 54,415 |
Profit (Loss) Attributable to Equity Holders of Parent | 20,205 | 56,875 |
Profit (Loss) Attributable to Minority Interest | -142 | -2,460 |
Net income per share | 7.9 | 24.0 |
Number of shares outstanding (in millions) | 2,807 | 2,264 |
CENCOSUD S.A. | |||
CONSOLIDATED BALANCE SHEETS DATA (In millions of Chilean pesos as of March 31st, 2013) | |||
March 2013 | Dec 2012 | ||
CLP MM | CLP MM | ||
Current Assets: | |||
Cash and Cash Equivalents | 149,233 | 237,721 | |
Other Financial Assets, Current | 78,670 | 68,167 | |
Other Non-Financial Assets, Current | 15,433 | 9,992 | |
Trade and Other Receivables, Net, Current | 992,284 | 1,060,333 | |
Accounts receivable from related parties, Current | 715.068 | 323.624 | |
Inventories | 925,991 | 926,762 | |
Tax Assets, Current | 38,146 | 31,270 | |
Total Current Assets | 2,200,473 | 2,334,567 | |
Non-Current Assets: | |||
Other Financial Assets, Non-Current | 37,385 | 41,007 | |
Other Non-Financial Assets, Non-Current | 37,649 | 38,268 | |
Trade and Other Receivables, Net, Non-Current | 147,265 | 142,306 | |
Equity Method Accounted Investments in Associates | 43,214 | 42,272 | |
Intangible Assets, Net | 539,106 | 544,512 | |
Capital gain | 1,780,561 | 1,824,973 | |
Property, Plant and Equipment, Net | 2,949,344 | 2,977,838 | |
Investment Property | 1,473,487 | 1,471,344 | |
Current tax assets, Non-Current | 9,039 | 4825.534 | |
Deferred Tax Assets | 269,355 | 252,087 | |
Total Non-Current Assets | 7,286,407 | 7,339,432 | |
TOTAL ASSETS | 9,486,880 | 9,674,000 | |
Current Liabilities: | |||
Other Financial Liabilities, Current | 555,031 | 1,179,132 | |
Trade and Other Payables, Current | 1,673,843 | 1,902,396 | |
Notes and accounts payable to related companies, Current | 813.452 | 974 | |
Provisions, Current | 41,759 | 22,624 | |
Current Tax Payables | 37,112 | 46,798 | |
Current provisions for employee benefits | 68,983 | 78,800 | |
Other Non-Financial Liabilities, Current | 84,415 | 84,317 | |
Total Current Liabilities | 2,461,957 | 3,315,041 | |
Non-Current Liabilities: | |||
Other Financial Liabilities, Non-Current | 2,311,812 | 2,359,501 | |
Trade and Other Payables, Non-Current | 7,704 | 7,411 | |
Provisions, Non-Current | 112,614 | 111,321 | |
Deferred Tax Liabilities | 396,059 | 397,606 | |
Current tax liabilities | 9,505 | 0 | |
Other Non-Financial Liabilities, Non current | 70,262 | 70,909 | |
Total Non-Current Liabilities | 2,907,956 | 2,946,747 | |
Equity: | |||
Issued Capital | 2,303,312 | 1,551,812 | |
Issued Premium | 506,322 | 477,341 | |
Other Reserves | -577,789 | -484,364 | |
Retained Earnings (Accumulated Losses) | 1,884,177 | 1,866,746 | |
Equity Attributable to Equity Holders of Parent | 4,116,022 | 3,411,534 | |
Minority Interest | 945 | 678 | |
Total Equity | 4,116,967 | 3,412,212 | |
TOTAL EQUITY AND LIABILITIES | 9,486,880 | 9,674,000 | |
SOURCE Cencosud S.A.
