Cencosud Reports Second Quarter 2015 Results

- Excluding one-offs Adjusted EBITDA grew 20% YoY and 102 bps expansion in the margin before non-recurring charges.

- Net profit more than doubled YoY and excluding one-off effects net profit tripled YoY.

Aug 28, 2015, 08:14 ET from Cencosud S.A.

SANTIAGO, Chile, Aug. 28, 2015 /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 2015. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with IFRS. Variations refer to the comparison between 2Q15 and 2Q14.

- Revenue increased 1.2% to CLP 2,617,109 million impacted by the currency devaluations in Brazil and Colombia.

- The two business divisions that represented 75% of gross profit in 2Q15 improved its results. Supermarkets posted gross margin expansion in almost all countries and Department Store Division also improved its gross margin, reflecting expansions in both Chile and Peru, explained by lower promotional activity and greater scale.

- Operating Income was CLP 63,863 million, down 24% YoY due to lower operating income as a result of several one-off items. Excluding one-offs operating income jumped 58% from supermarkets, Department Stores and Shopping Centers.  

- Adjusted EBITDA decreased 30% but excluding one-off effects, adjusted EBITDA grew 20% YoY resulting in a 102 bps expansion in adjusted EBITDA margin on the back of improved margins in the Supermarket and Department Store Divisions.

- Net profit increased 142% YoY. Excluding above mentioned one-offs net profit increased 298% YoY, on the back of a 58% increase in Operating Income (CLP 50,133 million), partially offset by a higher non-operating loss (CLP 11,648 million) and lower income taxes YoY by CLP 19,776 million

- Among measures taken by the Company in the period a write-off of goodwill related to assets in Brazil in the amount of CLP 116,771,000 was performed following a series of impairment tests. Despite the improvement shown in the EBITDA generation in the country, the overall deterioration of market conditions and indicators experienced in Brazil prompted the company to take action as recommended by its auditors PwC and E&Y as an independent consultant.

Please visit http://www.cencosud.com/inversionistas/ to obtain the full second quarter earnings release, including financial results and tables.

Conference Call

The company will hold a conference call to review the 2Q15 results on Friday, August 28, 2015 at 3:00 pm Santiago / 2:00 pm Eastern Time with a live webcast available through its website.

To participate on the day of the call, dial 1- 877-407-8031 or 1- 201-689-8031 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://www.investorcalendar.com/IC/CEPage.asp?ID=174239

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 operates in supermarkets, home improvement stores, shopping centers, financial services 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.

[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.