2014

CENCOSUD Reports Fourth Quarter 2012 Results Revenue rose 18% YoY to CLP 2,581 billion

EBITDA rose 16% YoY to CLP 247,182 million

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

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