Chilean retailer Cencosud has announced a 75.1% increase in profits, to $117 million, (€108 million) for the second quarter of 2024.
The company's revenue climbed 7.5%, to reach $4.16 billion (€3.83 billion), with the highest growth registered in Colombia (+22.2%), followed by the United States (+19.0%), Brazil (+15.2%), Peru (+10.3%), Argentina (+2.7%), and Chile (+2.6%).
Strong performance in the supermarket sector fuelled Cencosud's growth, offsetting challenges posed by the Easter holiday shift this year. Additionally, increased discretionary spending in Chile contributed to the positive results.
Adjusted EBITDA dropped 2.7% to $395 million (€363 million), while the adjusted EBITDA margin fell 99 basis points (bps) to 9.5%.
Online And Private-Label Sales
Online sales at Cencosud amounted to $414 million (€381 million), with an online penetration rate of 10.4%.
Private label products achieved a penetration of 16.9%, implying an expansion of 32 bps compared to Q2 2023, with total sales growing 17% year-on-year to $660 million (€607 million).
New Store Openings
Cencosud opened six new stores across three countries during the second quarter of 2024, adding 12,468 square meters of retail space to its portfolio. The company expanded its Spid banner in Chile with two new locations, and unveiled a 6,200 square metre Jumbo e-commerce facility within the Cenco Costanera complex.
Argentina saw the addition of a new Easy store in Rosario, as well as a Vea Express in Mendoza. The United States market, meanwhile, welcomed a new The Fresh Market store in Lakewood Ranch, Florida.
As of June 2024, Cencosud had opened a total of thirteen new stores this year.
Cencosud successfully issued a new $650 million (€598 million) international bond to optimise its debt structure. This offering was met with overwhelming investor interest, exceeding $3 billion (€2.7 billion) in demand.
