Cencosud Reports Third Quarter 2012 Results
Net income increased 20%, reaching CLP 66,913 million
Revenue up 18% to CLP 2,202 billion, driven by consolidation of acquisitions and Argentina same store sales
Cencosud agreed to acquire Carrefour Colombia, the country's second-largest supermarket operator
Company recorded tax provision of CLP 4,173 million as a result of tax reform in Chile
SANTIAGO, Chile, Nov. 20, 2012 /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 third 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 3Q2011 and 3Q2012.
- Net income increased 20% versus 3Q11, reaching CLP 66,913 million reflecting higher operating income and higher income from foreign exchange variations.
- The Company reported EBITDA of CLP 176,995 million, up 28% YoY, driven by improved results in Paris Department Stores, Shopping Centers and Home Improvement operations. Cencosud revenue increased 18% YoY to CLP 2,202 billion, after the consolidation of Prezunic and Johnson, double-digit Same Store Sales (SSS) in Argentina and the opening of 76 new stores versus 3Q11.
- Operating Income totaled CLP 135,498 million, up 12% versus 3Q11, primarily due to improved operating income from Home Improvement and Shopping Centers, partially offset by Supermarkets and Financial Services.
- Gross Margin was stable from a year ago, at 28.4%, as improved margins in Home Improvement and Shopping Centers offset lower margins in Department Stores and Financial Services
- The Paris department stores' EBITDA margin was 4.4% in 3Q12, while Johnson EBITDA was negative CLP 3,383 million.
- In October, the Company entered into a stock purchase agreement to acquire Carrefour's operations in Colombia, including 72 hypermarket stores, 16 convenience stores, four cash and carry stores and gas stations. The transaction will make Cencosud Colombia's second-largest supermarket operator. Cencosud financed the acquisition with a $2.5 billion credit line from JP Morgan.
- Cencosud plans to issue an international bond worth as much as USD 1 billion, followed by a capital increase worth as much as USD 1.5 billion, expected to be carried out in the first half of 2013.
- Costanera Center, South America's largest shopping mall, reported its first full quarter of operations. As of September 2012, the mall had 140,000 square meters of GLA, with an occupancy rate of 93%
- In August, 2012, our Brazilian supermarket chain Prezunic was rated as a Great Place to Work, highlighting the commitment and satisfaction of Prezunic's staff.
- Cencosud recorded a tax provision in the third quarter, due to the recent tax reform in Chile which raised rates on corporations. This provision amounted to CLP 4,173 million as of September 30, 2012. Our position as a leading retail brand in Chile and track record of prudent financial management will allow the Company to manage the impact of higher taxes going forward.
Consolidated revenues were CLP 2,202 billion in the third quarter of 2012, compared with CLP 1,863 billion in the third quarter of 2011, an 18% increase YoY. This increase was driven by double-digit SSS in Argentina, the acquisitions of Prezunic and Johnson, revenues coming from Costanera Shopping center, positive SSS across almost all business lines, and the 20% increase in selling space in 3Q12 versus the same period last year.
- Supermarket revenues in 3Q12 increased 17.3% YoY, reaching CLP 1,616 billion, driven by the consolidation of Prezunic, double-digit SSS in Argentina (+16.9%), positive SSS in Chile (+5,2%) and Peru (1.8%), and the opening of 68 new supermarkets in the region since September 2011 (+12% increase in selling space).
- Home Improvement revenues increased 15.3% YoY, reaching CLP 261 billion in 3Q12. The growth reflects double-digit SSS growth in Argentina (+28.3%) and Colombia (+10.2%) and positive SSS in Chile (+8.6%). Home Improvement revenues also benefited from the opening of two Easy stores, one in the Costanera Center shopping mall in June, and the other one in the Concepción, in the south of Chile, in August.
- Department Store revenues totaled CLP 203 billion, +30.0% YoY, driven by the consolidation of Johnson, the opening of three new Paris Stores since 3Q11 (Osorno, Costanera and Rancagua) and a 5.2% increase in SSS. Paris stores account for 10.6% of the sales growth.
- Shopping Center revenues grew 47.9% YoY, reaching CLP 46 billion after the opening of the Costanera Center and Portal Osorno in Chile.
- Financial Services operations showed an increase in revenues of 5.5% YoY, totaling CLP 72 billion, reflecting higher revenues from Argentina and Peru due to a larger portfolio versus a year ago.
Please visit www.cencosud.cl/inversionistas.htm to obtain the full third quarter earnings release.
The company will hold a conference call to review the 3Q12 results on Wednesday, November 21, 2012 at 11:00am Santiago /9:00am Eastern Time with a live webcast available through its website. The conference call dial-in is +1-877-270-2148 (United States) +1-412-902-6510 (international).
A webcast of the conference call will be available online at http://www.cencosud.cl/eng/inversionistas.htm beginning at 1:00 p.m. Santiago/ 11:00 a.m. Eastern time.
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
CONSOLIDATED INCOME DATA
(In millions of Chilean pesos as of September 30th, 2012)
Nine months ended September 30
Cost of sales
Selling and administrative expenses
Other income by function
Other gain (Losses)
Participation in profit or loss of equity method associates
Finance Costs [for Non-Financial Activities]
Income (loss) from foreign exchange variations
Result of indexation units
Non-operating income (loss)
Income before income taxes
Profit (Loss) Attributable to Equity Holders of Parent
Profit (Loss) Attributable to Minority Interest
Net income per share
Number of shares outstanding (in millions)
CONSOLIDATED BALANCE SHEETS
(In millions of Chilean pesos as of September 30th, 2012 )
Cash and Cash Equivalents
Other Financial Assets, Current
Other Non-Financial Assets, Current
Trade and Other Receivables, Net, Current
Accounts receivable from related parties, Current
Tax Assets, Current
Total Current Assets
Other Financial Assets, Non-Current
Other Non-Financial Assets, Non-Current
Trade and Other Receivables, Net, Non-Current
Equity Method Accounted Investments in Associates
Intangible Assets, Net
Property, Plant and Equipment, Net
Current tax assets, Non-Current
Deferred Tax Assets
Total Non-Current Assets
Other Financial Liabilities, Current
Trade and Other Payables, Current
Notes and accounts payable to related companies, Current
Current Tax Payables
Current provisions for employee benefits
Other Non-Financial Liabilities, Current
Total Current Liabilities
Other Financial Liabilities, Non-Current
Trade and Other Payables, Non-Current
Deferred Tax Liabilities
Other Non-Financial Liabilities, Non current
Total Non-Current Liabilities
Retained Earnings (Accumulated Losses)
Equity Attributable to Equity Holders of Parent
TOTAL EQUITY AND LIABILITIES
SOURCE Cencosud S.A.
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