-1Q16 Adjusted EBITDA up 16.9% YoY
- Adjusted EBITDA margin increased +149 bps YoY with contributions from all countries driven by successful execution of efficiency plan and new commercial strategies
- Net debt to Adjusted EBITDA falls to 2.86 times, excluding non-recurring items
- Cencosud's BBB- Investment Grade Rating with Stable Outlook reaffirmed by Fitch Ratings
SANTIAGO, CHILE / ACCESSWIRE / May 25, 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 first quarter 2016. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with IFRS. Variations refer to the comparison between 1Q16 and 1Q15.
- Businesses remain resilient with sales and Same Store Sales ("SSS") growth in local currency across all regions, except Brazil. Nevertheless, revenues in CLP decreased 6.4% due to the depreciation of the Argentine Peso (31.9%), Colombian Peso (14.3%) and Brazilian Real (18.1%).
- Adjusted EBITDA margin improved across all countries reaching 7.5% in 1Q16 (+149 bps YoY). Adjusted EBITDA grew 16.9% in the period, offsetting currency devaluations.
- Net Profit increased almost 5 times, reaching CLP 109,029 million due to improved performance at the operation, the positive impact of the exchange rate over dollar denominated debt and revaluation of investment properties.
- Net Financial Debt/Adjusted EBITDA decreased 56 bps vs. 1Q15 reaching 3.27x. Excluding all non-recurring items for the last twelve months period, ratio would reach 2.86x.
Please visit www.cencosud.com/inversionistas.htm to obtain the full first quarter earnings release, including financial results and tables.
Management Comment
Our results for the first quarter of 2016 demonstrate our ability to improve profitability in challenging market environments and maintain our position as a market leader in South American retail. We delivered strong year-over-year Adjusted EBITDA growth, even in areas of operation where economic conditions have significantly deteriorated and consumer spending has weakened since the same quarter a year ago. We were able to achieve this maintaining a strong financial discipline and executing on our business strategy to improve SG&A savings while focusing on driving store traffic. As a result, we grew our Adjusted EBITDA by double digits, generated SSS growth in local currency across the board, and further reduced our expense base. As a result of efficient capital and financial management we have reduced our Net Debt / Adj. EBITDA ratio, excluding one-off items, to 2.86 times.
We are very pleased with the start we've had to 2016, and remain confident in our ability to execute on our strategy to drive profitability, even in the face of uncertain economic markets in major areas of operation. Cencosud is well positioned to benefit from even a modest upturn in economic activity and consumer spending in the region.
Conference Call
The Company will host a conference call to discuss these results on Thursday, May 26th, 2016 at 11:30 AM Chilean time/ 11:30 am EST. To participate on the day of the call, dial 1- 800-901-1255 or 1-785-424-1081 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 http://investors.cencosud.com/English/investor-overview/financials/quarterly-reports/default.aspx.
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.
Investor Relations
Maria Soledad Fernandez
Phone +5622959 0545
[email protected]
Natalia Nacif
Phone +5622959 0368
[email protected]
Valentina Klein
Phone +5622200 4395
[email protected]
SOURCE: Cencosud S.A.