Cencosud Reports Second Quarter 2014 Results
-Revenues rise 5.4% with expanded sales across all business divisions
-Positive supermarket SSS in Chile, Argentina and Peru; Colombia SSS decline narrows
-Adjusted EBITDA rises 1.7%; excluding one-time charge, adjusted EBITDA rises 6.3%
SANTIAGO, Chile, Sept. 5, 2014 /PRNewswire/ -- Cencosud S.A. (BCS: CENCOSUD; NYSE: CNCO), a leading multi-format Latin American retailer with presence in five countries, announced today its consolidated financial results for the second quarter of 2014. 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 2Q13 and 2Q14.
-Revenues rose 5.4% to CLP 2.64 trillion, driven by higher sales in Chile, Brazil, Colombia, and Peru, partially offset by lower revenues from Argentina as a result of the devaluation of the local currency.
-Gross profit rose 2.2% to CLP 732 billion, with higher gross profit in Home Improvement, Financial Services, Supermarket, and Shopping Centers being partially offset by lower gross profit from Department Stores. Gross margin decreased 86 basis points to 27.7%.
-Operating income decreased 5.6% to CLP 106 billion, as a result of lower operating income from Department Stores, Supermarkets, Shopping Centers, and Financial Services, partially offset by higher operating income from Home Improvement. Operating margin fell from 4.5% in 2Q13 to 4% in 2Q14.
-Adjusted EBITDA[1] grew 1.7% to CLP 162 billion. Excluding a one-off charge related to labor expenses in Brazil, Adjusted EBITDA rose 6.3% with stable Adjusted EBITDA margin.
-Net profit increased 196.2% to CLP 25 billion, reflecting lower non-operating losses and lower tax expenses.
Please visit www.cencosud.com/inversionistas.htm to obtain the full second quarter earnings release.
Conference Call
The company will hold a conference call to review the 2Q14 results on Monday, September 8, 2014 at 1:00 pm Santiago/ 12:00 pm Eastern Time with a live webcast available through its website. Please use the following link to pre-register for this conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time.
To pre-register please go to: http://dpregister.com/10050654
To participate on the day of the call, dial 1-866-652-5200 or 1-412-317-6060 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://services.choruscall.com/links/cencosud140902.html
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 (ADRs) on the New York Stock Exchange.
Note on discontinued operations
In June 2014, Cencosud signed definitive contracts with Scotiabank to jointly develop the financial retail business in Chile. In relation to this transaction and to comply with IFRS rules, from June 2014 Cencosud is reporting its results from discontinued operations from the Chilean financial retail business accounted in a single line in the Consolidated Financial Statements. The results from those operations are in one line called "Profit (loss) from discontinued operations" (abbreviated as D.O. in this report) which consolidates the result from the financial service operations from Chile. The Company includes for comparison purposes each line of discontinued operations in the financial retail business segment. These lines are subtracted in the "Others" segment. Therefore results from discontinued operations are shown in one line called "Profit (loss) from discontinued operations"
| CONSOLIDATED INCOME DATA |
|||||
| (In million of Chilean pesos as of June 30th, 2014) |
|||||
| Second Quarter |
Six-Month, ended June 30th |
||||
| 2014 |
2013 |
2014 |
2013 |
||
| CLP MM |
CLP MM |
CLP MM |
CLP MM |
||
| Net revenues |
2,586,171 |
2,452,878 |
5,075,196 |
4,867,895 |
|
| Cost of sales |
-1,896,599 |
-1,776,862 |
-3,711,772 |
-3,535,939 |
|
| Gross profit |
689,573 |
676,016 |
1,363,423 |
1,331,956 |
|
| Selling and administrative expenses |
-619,813 |
-591,092 |
-1,182,987 |
-1,151,806 |
|
| Other income by function |
-390 |
7,036 |
8,804 |
23,890 |
|
| Other gain (Losses) |
16,933 |
-2,910 |
9,700 |
6,074 |
|
| Operating income |
86,303 |
89,049 |
198,940 |
210,114 |
|
| Participation in profit or loss of equity method associates |
573 |
1,412 |
1,883 |
2,769 |
|
| Net Financial Income |
-48,727 |
-47,198 |
-101,781 |
-107,857 |
|
| Income (loss) from foreign exchange variations |
-3,241 |
-20,319 |
-8,345 |
-24,189 |
|
| Result of indexation units |
-11,815 |
-921 |
-22,140 |
-3,559 |
|
| Non-operating income (loss) |
-63,210 |
-67,026 |
-130,383 |
-132,835 |
|
| Income before income taxes |
23,093 |
22,023 |
68,557 |
77,278 |
|
| Income taxes |
-3,913 |
-19,686 |
-18,123 |
-46,752 |
|
| Profit (Loss) from continued operations |
19,180 |
2,337 |
50,434 |
30,526 |
|
| Profit (Loss) from discontinued operations |
5,836 |
6,109 |
11,095 |
-1,875 |
|
| Profit (Loss) |
25,017 |
8,446 |
61,529 |
28,651 |
|
| Profit (Loss) attributable to Equity Holders of Parent |
24,542 |
7,976 |
60,334 |
28,039 |
|
| Profit (Loss) attributable to Minority Interest |
475 |
470 |
1,195 |
612 |
|
| Net income per share |
8.7 |
3.0 |
21.3 |
10.5 |
|
| Average number of shares outstanding (in millions) |
2,829 |
2,669 |
2,829 |
2,669 |
|
| Other Financial Information |
|||||
| Organic Capex |
47,489 |
94,576 |
98,906 |
192,069 |
|
| Acquisitions |
0 |
0 |
0 |
0 |
|
| Depreciation |
45,716 |
45,368 |
89,351 |
89,617 |
|
| Amortization |
3,853 |
3,691 |
8,141 |
6,557 |
|
| Revalue of Assets |
-5,070 |
3,875 |
1,639 |
17,504 |
|
| CONSOLIDATED BALANCE SHEETS |
|||
| (In million of Chilean pesos as of June 30th, 2014) |
|||
| Jun-14 |
Dec 2013 |
Variation |
|
| MM Ch$ |
MM Ch$ |
||
| Cash and cash equivalents |
151,938 |
171,712 |
-19,774 |
| Other financial assets, current |
29,784 |
49,584 |
-19,800 |
| Other non-financial assets, current |
16,547 |
11,605 |
4,941 |
| Trade receivables and other receivables |
643,074 |
1,133,448 |
-490,373 |
| Receivables from related entities, current |
879 |
432 |
446 |
| Inventory |
1,113,167 |
1,044,907 |
68,260 |
| Current tax assets |
12,712 |
22,797 |
-10,086 |
| Total current assets other from non-current assets classified as held for sale |
1,968,100 |
2,434,485 |
-466,385 |
| Non-current assets classified as held for sale |
766,334 |
- |
766,334 |
| TOTAL CURRENT ASSETS |
2,734,434 |
2,434,485 |
299,949 |
| Other financial assets, non-current |
163,771 |
92,405 |
71,366 |
| Other non-financial assets, non-current |
37,047 |
38,263 |
-1,216 |
| Trade receivable and other receivables, non current |
35,327 |
155,840 |
-120,513 |
| Equity method investment |
50,110 |
49,942 |
168 |
| Intangible assets other than goodwill |
404,816 |
571,622 |
-166,806 |
| Goodwill |
1,823,871 |
1,696,041 |
127,830 |
| Property, plant and equipment |
3,111,293 |
3,101,884 |
9,410 |
| Investment property |
1,563,984 |
1,568,432 |
-4,448 |
| Current Tax assets, non-current |
56,061 |
53,727 |
2,334 |
| Deferred income tax assets |
362,337 |
302,594 |
59,743 |
| TOTAL NON-CURRENT ASSETS |
7,608,616 |
7,630,749 |
-22,133 |
| TOTAL ASSETS |
10,343,050 |
10,065,234 |
277,816 |
| Jun-14 |
Dec 2013 |
Variation |
|
| MM Ch$ |
MM Ch$ |
||
| Other financial liabilities, current |
419,137 |
739,106 |
-319,969 |
| Trade payables and other payables |
1,720,737 |
1,957,993 |
-237,257 |
| Payables to related entities, current |
904 |
556 |
348 |
| Provisions and other liabilities |
39,472 |
46,406 |
-6,935 |
| Current income tax liabilities |
43,284 |
63,131 |
-19,848 |
| Current provision for employee benefits |
87,706 |
96,697 |
-8,991 |
| Other non-financial liabilities, current |
41,729 |
47,809 |
-6,079 |
| Total liabilities included in group of assets classified as held for sale |
2,352,968 |
2,951,699 |
-598,731 |
| Liabilities included in groups of assets classified as held for sale |
250,659 |
- |
250,659 |
| TOTAL CURRENT LIABILITIES |
2,603,628 |
2,951,699 |
-348,071 |
| Other financial liabilities |
2,605,302 |
2,218,035 |
387,267 |
| Trade accounts payable |
17,849 |
8,955 |
8,895 |
| Provisions and other liabilities |
33,465 |
- |
33,465 |
| Deferred income tax liabilities |
101,676 |
88,223 |
13,454 |
| Current tax liabilities |
482,235 |
471,481 |
10,754 |
| Other non-financial liabilities, non-current |
69,285 |
65,475 |
3,811 |
| TOTAL NON-CURRENT LIABILITIES |
3,309,813 |
2,852,168 |
457,645 |
| TOTAL LIABILITIES |
5,913,441 |
5,803,867 |
109,573 |
| Paid-in Capital |
2,321,381 |
2,321,381 |
- |
| Retained earnings (accumulated losses) |
2,080,239 |
2,049,483 |
30,756 |
| Issuance premium |
526,633 |
526,633 |
- |
| Other reserves |
-500,041 |
-636,231 |
136,190 |
| Net equity attributable to controlling shareholders |
4,428,213 |
4,261,267 |
166,946 |
| Non-controlling interest |
1,397 |
100 |
1,297 |
| TOTAL NET EQUITY |
4,429,610 |
4,261,367 |
168,243 |
| TOTAL NET EQUITY AND LIABILITIES |
10,343,050 |
10,065,234 |
277,816 |
[1] Adjusted EBITDA = EBITDA – Revalue of assets – Result from Indexation Units – Income (loss) from foreign exchange variations.
Forward-Looking Statements:
In addition to historical information, this earnings 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.
SOURCE Cencosud S.A.
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