Earnings Release 1Q10
Cencosud Announces First Quarter 2010 Results ¢ Cencosud reaches an 8,8% Ebitda Margin for the quarter, 130 bsp growth YoY (7,5% in 2009), with an increase of 19,9%. This is a consecuence of a better performance across the Businesses: 32% growth in Supermarkets, 39% in Home Improvement or DYS, 71% in Department Stores and 24% in Shopping Centers. 1 ¢ Operating profit ends up 55,9% YoY . ¢ Net income up by 71,9% YoY. ¢ Net debt to Ebitda is down to 2,21 times from 2,58 times as of December 2009 Total sales reached USD 2.652 mill. for the quarter, measured in first-quarter average dollar (USD $ 2.628 measured at April 1, 2010), Chile which accounts for 46% of total sales, reached an increase on sales of 20,6% YoY, Argentina (32,2% of total sales) reached an increase of 9,3% YoY, Brasil (11,4% of total sales) reached an increase of 45,2% YoY, Perú (9,9% of total sales) reached an increase of 12,2% YoY and finally Colombia (only 0,4% of total sales) due that it is starting operations, reaches a 200% increase in sales YoY. Exchange rates from local currencies to the Chilean Peso had a significant impact in the consolidated figures. As a consecuence of this effect Total sales for the quarter increase 18,4% when measured in USD dollars and 2,2% when measured in Chilean pesos and the Ebitda increases 39,2% measured in USD dollars and 19,9% when measured in Chilean Pesos. The solid recovery in Profit and Ebitda Margins which started in the second half of 2009, together to the special focus placed on cash generation and cost reduction as a result of the synergies achievement through all operations and countries are the reason for the increase in Ebitda Margin form 7,5% in Q1 2009 to 8,8% in 2010 generating improved financial indicators and are guaranteeing a solid new growth cycle for Cencosud.
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