CENCOSUD Reports Fourth Quarter 2012 Results

Revenue rose 18% YoY to CLP 2,581 billion

EBITDA rose 16% YoY to CLP 247,182 million

01 Mar, 2013, 10:35 ET from Cencosud S.A.

SANTIAGO, Chile, March 1, 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 fourth quarter of 2012. 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 4Q2011 and 4Q2012.

  • Cencosud revenue increased 18% YoY, driven by the consolidation of Prezunic and Johnson earlier in the year, and Colombian Supermarkets in December, as well as positive Same Store Sales (SSS) in every division in Chile, Brazil, Argentina and Peru.
  • The Company increased its total selling space1 by 10%, opening 36 new stores in 4Q12 and 87 new stores in 2012.
  • EBITDA rose 16% to CLP 247,182 million YoY, driven by improved results in the Supermarket, Department Store and Financial Service divisions.  
  • Operating Income reached CLP 222,318 million, up 20% versus 4Q11, largely due to improved operating income from the Supermarket, Financial Service and Department Store divisions.
  • Department Store EBITDA increased 13.5% to CLP 21,532 million and reported a margin of 7.5%. Only considering Paris stores, Department Store EBITDA margin was 9.5% in 4Q12.
  • On December 1, 2012, the Company took over and began consolidating the results of Carrefour Colombia, making Cencosud the second-largest supermarket operator in Colombia.  The transaction, which included hypermarkets, convenience stores, cash and carry stores and gas stations with a total selling space of 444,000 m2, was valued at €2 billion. The Company financed the acquisition with a USD 2.5 billion bridge loan.
  • Cencosud issued USD 1.2 billion of debt in the international market in December 2012. The deal was highly successful, approximately 8 times oversubscribed, with a coupon of 4.875%, highlighting the Company's ability to access financing at privileged rates. The proceeds of the issue were used to pay down in part the bridge loan facility.

1 Excludes the selling space added by Prezunic and Johnson acquisitions.

Consolidated Revenues

Consolidated revenues were CLP 2,581 billion in the fourth quarter of 2012, compared with CLP 2,196 billion in the fourth quarter of 2011, an 18% increase YoY. This increase was driven by the acquisitions of Prezunic and Johnson, the consolidation of the Colombian supermarket operation in December, revenues from Costanera Shopping center, positive SSS across almost all lines of retail businesses and the increase of 16% in selling area in 4Q12 versus the same period last year (selling area excludes Supermarkets Colombia). 

  • Supermarket revenues in 4Q12 increased 18.5% YoY, reaching CLP 1,886 billion, driven by the consolidation of Carrefour Colombia in December 2012 (CLP 116,598 million), which explains 40% of the division's YoY variation. Additionally, the consolidation of Prezunic, positive SSS in Chile, Argentina and Peru and the opening of 78 new supermarkets in the region since December 2011, all helped drive revenue higher.  Total selling space rose 10%, not including the acquisitions of Prezunic and Carrefour.
  • Home Improvement revenues increased 3.2% YoY, reaching CLP 288 billion in 4Q12.  The growth reflects a sales growth of 6.2% in SSS in Chile and the opening of two Easy stores (Costanera and Concepción). The results were partially offset by lower revenues from Argentina and Colombia, due to the appreciation of the Chilean peso. In the case of Argentina, even though the Company obtained double-digit SSS growth, the situation in the country has affected the construction sector of the economy, which has shown lower activity versus previous quarters. In the case of Colombia, scarcity of land and high prices in the market are also affecting the construction sector, showing a lower activity in addition to a higher competition, with an aggressive price strategy in a store located close to an Easy store.
  • Department Store revenues totaled CLP 287,486 million, +27.4% YoY, driven by the consolidation of Johnson, four new Paris Stores opened since 4Q11 (Osorno, Costanera, Rancagua Centro and Quilin) and a 2.7% increase in SSS. Paris stores explain 9.2% of the sales growth and Johnson contributes with CLP 41,027 million or 14.3% of the total.
  • Shopping Center revenues grew 31.0% YoY, reaching CLP 50 billion due to higher occupancy rates and sales, along with two new shopping malls (Costanera and Osorno) and the initiation of parking fees in Alto Las Condes and Osorno.
  • Financial Services operations showed an increase in revenues of 7.6% YoY, totaling CLP 66 billion, reflecting higher revenues from Argentina and Peru due to a larger portfolio versus a year ago.

Please visit http://www.cencosud.com/inversionistas/ to obtain the full fourth quarter earnings release.

The company will hold a conference call to review the 4Q12 results on Tuesday, March 5, 2013 at 14:00 pm Santiago / 12:00 pm Eastern Time with a live webcast available through its website.  The conference call dial-in is +1-866-652-5200 (United States) +1-412-317-6060 (international).

A webcast of the conference call will be available online at http://www.cencosud.com/inversionistas/ beginning at March 5, 2013, at 4:00 p.m. Santiago / 2:00 p.m. Eastern time, until April 5, 2013.

  

CONSOLIDATED INCOME DATA

(In millions of Chilean pesos as of December 31st, 2012)

Fourth Quarter

Twelve-month ended December 31

2012

2011

2012

2011

CLP MM

CLP MM

CLP MM

CLP MM

Net revenues

2,580,648

2,195,690

9,149,077

7,604,806

Cost of sales

(1,832,012)

(1,579,301)

(6,547,832)

(5,434,917)

Gross profit

748,635

616,389

2,601,245

2,169,890

Selling and administrative expenses 

(581,140)

(474,462)

(2,101,821)

(1,669,374)

Other income by function

45,183

50,805

107,110

85,128

Other gain (Losses)

9,640

(7,001)

1,332

(12,659)

Operating income  

222,318

185,731

607,866

572,986

Participation in profit or loss of equity method associates

2,153

3,179

5,640

5,779

Financial Income

1,326

2,611

8,110

10,984

Finance Costs [for Non-Financial Activities]

(64,705)

(40,551)

(211,022)

(144,136)

Income (loss) from foreign exchange variations 

(6,560)

197

(2,680)

(9,876)

Result of indexation units

(9,235)

(9,567)

(25,915)

(31,289)

Non-operating income (loss) 

(77,022)

(44,131)

(225,867)

(168,538)

Income before income taxes

145,296

141,600

381,999

404,448

Income taxes  

(32,977)

(45,703)

(109,190)

(119,556)

Profit (Loss)

112,319

95,898

272,809

284,892

Profit (Loss) Attributable to Equity Holders of Parent

112,876

93,496

269,959

274,333

Profit (Loss) Attributable to Minority Interest

(558)

2,402

2,851

10,559

Net income per share 

45.0

41.3

107.7

121.2

Number of shares outstanding (in millions)

2,507

2,264

2,507.1

2,264.0

    

CENCOSUD S.A.

CONSOLIDATED BALANCE SHEETS DATA

(In millions of Chilean pesos as of December 31st, 2012 )

Dec 2012

Dec 2011

CLP MM

CLP MM

Current Assets:

Cash and Cash Equivalents

237,721

145,062

Other Financial Assets, Current

68,167

221,929

Other Non-Financial Assets, Current

9,992

12,259

Trade and Other Receivables, Net, Current

1,060,333

929,869

Accounts receivable from related parties, Current

323.624

82.334

Inventories

926,762

769,472

Tax Assets, Current

31,270

6,962

Total Current Assets

2,334,567

2,085,636

Non-Current Assets:

Other Financial Assets, Non-Current

41,007

46,980

Other Non-Financial Assets, Non-Current

38,268

35,052

Trade and Other Receivables, Net, Non-Current

142,306

194,444

Equity Method Accounted Investments in Associates

42,272

38,830

Intangible Assets, Net

544,512

526,688

Capital gain

1,824,973

1,013,309

Property, Plant and Equipment, Net

2,977,838

2,228,529

Investment Property

1,471,344

1,310,143

Current tax assets, Non-Current

4,826

0

Deferred Tax Assets

252,087

164,478

Total Non-Current Assets

7,339,432

5,558,452

TOTAL ASSETS

9,674,000

7,644,088

Current Liabilities:

Other Financial Liabilities, Current

1,179,132

597,877

Trade and Other Payables, Current

1,902,396

1,533,784

Notes and accounts payable to related companies, Current

974.469

1,448

Provisions, Current

22,624

17,981

Current Tax Payables

46,798

40,490

Current provisions for employee benefits

78,800

68,650

Other Non-Financial Liabilities, Current

84,317

71,050

Total Current Liabilities

3,315,041

2,331,280

Non-Current Liabilities:

Other Financial Liabilities, Non-Current

2,359,501

1,868,586

Trade and Other Payables, Non-Current

7,411

11,151

Provisions, Non-Current

111,321

81,772

Deferred Tax Liabilities

397,606

317,971

Other Non-Financial Liabilities, Non current

70,909

82,722

Total Non-Current Liabilities

2,946,747

2,362,201

Equity:

Issued Capital

1,551,812

927,804

Issued Premium

477,341

477,341

Other Reserves

(484,364)

(202,722)

Retained Earnings (Accumulated Losses)

1,866,746

1,660,433

Equity Attributable to Equity Holders of Parent

3,411,534

2,862,856

Minority Interest

677.599

87,750

Total Equity

3,412,212

2,950,606

TOTAL EQUITY AND LIABILITIES

9,674,000

7,644,088

 

About Cencosud S.A.

Cencosud is a Latin America multiformat – multibrand retailer, based on its revenues, selling space, number of stores and real estate in the countries where it operates. Cencosud operates through different store formats including supermarkets, home improvement, shopping centers, financial services and department stores. Cencosud headquarters are in Santiago, Chile, and the Company has operations in Chile, Argentina, Brazil, Colombia and Peru.

SOURCE Cencosud S.A.



RELATED LINKS

http://www.cencosud.cl


http://www.cencosud.com/inversionistas