Cencosud saw its profits tumble in the first quarter as the Chilean retail giant incurred loan costs related to the acquisition of Carrefour’s Colombian assets.
Earnings in the three months to the end of March fell to CLP20.21bn (US$41.1m). This compared to earnings of CLP56.87bn a year earlier. Operating profit in the period was down 11.8% to CLP117.41bn.
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Revenue, however, was up 14% to CLP2.47trn, driven by the consolidation of the Colombian supermarket operation, as well as positive same-store-sales in almost every division and country. The retailer added 179 stores in the quarter, with an increase of 24% in selling space. Supermarket revenues were up 15.3%, reaching CLP1.86tr.
Despite the profit decline, CEO Daniel Rodriguez said the company will look to focus on “integration and efficiency” in its recent acquisitions going forward, while continuing the process of deleveraging to further strengthen its balance sheet.
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