Cencosud reports second quarter 2013 results
-Revenues rose 14% to CLP 2,508 billion on positive SSS, expanded regional
-Adjusted EBITDA rose 19%; adjusted EBITDA margin grows to 6.4%
-Colombia supermarket integration and rebranding results in 3.6% SSS growth
-Johnson turn around continues, posting positive EBITDA
SANTIAGO, Chile, Aug. 30, 2013
SANTIAGO, Chile, Aug. 30, 2013 /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 2013. 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 the 2Q2012 and
oCencosud revenue increased 14% YoY to CLP 2,508 billion in 2Q13 in CLP,
with the consolidation of supermarkets in Colombia and positive SSS in
almost every division and country.
oCencosud added 175 stores and 4 shopping centers versus 2Q12, with an
increase of 18% in selling space. Excluding the Colombia acquisition,
Cencosud added 79 stores and 3 shopping centers.
oGross profit rose 14.8% to CLP 716,166 million in 2Q13, with a
double-digit increase in every division except Home Improvement. Gross
margin was flat at 28.6%, from 28.4% in 2Q12, despite the addition of the
lower-margin Colombian supermarket business which is undergoing a
oOperating Income decreased 4.1% to CLP 112,138 million in 2Q13 vs. 2Q12,
due to lower income from the revaluation of assets. Excluding this
revaluation, operating income increased 9.6% in 2Q13.
oNet income decreased 78% versus 2Q13, from CLP 36,167 million in 2Q12 to
CLP 7,967 million in 2Q13, reflecting higher financial costs (CLP 8,786
million), mainly due to higher debt levels related to acquisitions, as
well as higher losses from foreign exchange variations (CLP 18,694
million). The results also reflect a 79% decrease in income from the
revaluation of assets (CLP 14,330 million).
oAdjusted EBITDA^1 reached CLP 159,355 million, up 19% YoY on improved
results from the Financial Services and Shopping Centers divisions (with a
full quarter of operations for the Costanera center), as well as the
consolidation of the Colombian supermarket acquisition.
oThe turnaround of Johnson continued, with the business posting positive
EBITDA for the first time since being acquired in 2012. Cencosud expanded
Johnson's gross margin by 595 bps from 2Q12 and is continuing the process
of integrating the unit with the Paris department store business.
Together, Paris and Johnson reported total revenue of CLP 230, 716
million, up 9.1%, and total adjusted EBITDA of CLP 18, 124 million, up
oOn June 17^th, 2013, Cencosud announced a binding agreement with Itau
Unibanco Holding S.A. for the joint development of the financial retail
business in Chile and Argentina. A total upfront cash payment of US$1.58
billion will be made to Cencosud. Under the terms of the agreement, Itau
Chile will acquire 51% of the shares of Cencosud Administradora de
Tarjetas (CAT), Cencosud's credit card operator in Chile. In Argentina,
Cencosud will create a new entity, to which Itau Argentina will contribute
equity, to jointly develop the business. Additionally, in both countries
Itau will provide funding to finance 100% of the current credit portfolio
and future growth.
In the second quarter, Cencosud made important progress in its strategy to
integrate its recent acquisition of Carrefour Colombia and reduce leverage.
Highlights for the quarter include 3.6% SSS in our Colombian supermarkets,
while still undergoing the rebranding process.
Other notable developments in the second quarter include the agreement with
Itau Unibanco Holding SA to jointly develop Cencosud's financial retail
business in Argentina and Chile. This agreement will give our clients the
benefit of working with a market leader in financial services, while also
providing substantial funds that Cencosud will use to reduce leverage and
Cencosud also made advances in corporate governance in the second quarter,
with Mr. Richard Buchi being elected as a second independent director,
bringing a wealth of private and public sector experience to the board.
Consolidated revenues were CLP 2,508 billion in the second quarter of 2013,
compared with CLP 2,198 billion in the second quarter of 2012, a 14% increase
oSupermarket revenues in 2Q13 increased 15.4% YoY, reaching CLP 1,870
billion, driven by the consolidation of the Colombian supermarket
division, positive SSS in almost every country and the net opening of 73
new supermarkets in the region since June 2012 (excluding Colombia).
oHome Improvement revenues increased 8.7% YoY, reaching CLP 277 billion in
2Q13. The growth reflects a 4.1% SSS increase in Chile, 30.9% increase in
SSS in Argentina and the net opening of one Easy store in the region.
oDepartment Store revenues totaled CLP 231 billion, up9.1% YoY, driven by a
strong performance of the Chilean operation. Paris and Johnson had sales
growth of 7.9% and 9.1% respectively, and a combined SSS increase of 2.9%.
Paris Peru contributed CLP 2,152 million of sales in 2Q13, reflecting two
openings this quarter, in addition to the first Peruvian Paris store,
which was opened in Arequipa in late March 2013.
oShopping Center revenues grew 35.5% YoY, reaching CLP 50 billion, driven
by higher revenues from Chile. This is mainly explained by the revenues
from the Costanera Center, which was only in operation for 19 days in
2Q12, as well as the opening of three new shopping centers in the region,
and the addition of the real estate operations in Colombia.
oFinancial Services revenues increased 5.5% YoY, to CLP 76 billion,
reflecting the integration of Colombian financial services and higher
revenues from Peru, offset by lower revenues from Chile as the average
portfolio ( on a last twelve months basis) decreased in size.
Please visit www.cencosud.com/inversionistas.htm to obtain the full second
quarter earnings release.
The company will hold a conference call to review the 2Q13 results on
Wednesday, September 4, 2013 at 11:00 am Santiago/Eastern Time with a live
webcast available through its website. The conference call dial-in is +1(866)
652-5200 or +1(412) 317-6060. A webcast of the conference call will be
available online at http://www.cencosud.com/eng/inversionistas.htm.
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.
^1 Please see "Reconciliation of Non-IFRS measures" starting on page 33 for a
reconciliation of EBIT, EBITDA and Adjusted EBITDA to Profit/Loss. EBIT
represents profit attributable to controlling shareholders before net interest
expense and income taxes. EBITDA is defined as EBIT plus depreciation and
amortization expense. Adjusted EBITDA represents EBITDA as further adjusted to
reflect foreign exchange differences, increases (decreases) on revaluation of
investment properties and gains or (losses) from indexation. Adjusted EBITDA
margin and Adjusted EBIT margin are calculated as a percentage of revenues.
CONSOLIDATED INCOME DATA
(In millions of Chilean pesos as of June 30th, 2013)
Second Quarter Six-month, ended June 30th
2013 2012 2013 2012
CLP MM CLP MM CLP MM CLP MM
Net revenues 2,508,008 2,197,784 4,976,447 4,366,693
Cost of sales -1,791,842 -1,573,368 -3,571,301 -3,139,475
Gross profit 716,166 624,416 1,405,145 1,227,218
Selling and administrative -607,988 -526,686 -1,205,537 -1,010,578
Other income by function 7,015 19,502 23,883 41,921
Other gain (Losses) -3,055 -272 6,056 -8,511
Operating income 112,138 116,960 229,547 250,050
Participation in profit or
loss of equity method 1,414 1,140 2,769 2,240
Financial Income 2,265 1,881 3,811 4,688
Finance Costs [for -57,400 -48,230 -127,341 -98,014
Income (loss) from foreign -27,920 -9,226 -30,203 -2,607
Result of indexation units -802 -5,381 -3,644 -14,029
Non-operating income -82,443 -59,816 -154,607 -107,721
Income before income taxes 29,695 57,143 74,939 142,330
Income taxes -21,249 -20,441 -46,288 -48,752
Profit (Loss) 7,976 36,167 28,039 90,582
Profit (Loss) Attributable 8,446 36,702 28,651 93,578
to Equity Holders of Parent
Profit (Loss) Attributable -470 -535 -612 -2,995
to Minority Interest
Net income per share 11 40 10.5 40.0
Number of shares 2,829 2,356 2,829 2,356
outstanding (in millions)
CONSOLIDATED BALANCE SHEETS DATA
(In millions of Chilean pesos as of June 30th, 2013 )
June 2013 Dec 2012
CLP MM CLP MM
Cash and Cash Equivalents 115,347 237,721
Other Financial Assets, Current 55,473 68,167
Other Non-Financial Assets, Current 14,951 9,992
Trade and Other Receivables, Net, Current 1,011,877 1,060,333
Accounts receivable from related parties, Current 1,108 324
Inventories 985,778 914,605
Tax Assets, Current 20,597 31,270
Total Current Assets 2,205,132 2,322,411
Other Financial Assets, Non-Current 43,217 41,007
Other Non-Financial Assets, Non-Current 40,116 38,280
Trade and Other Receivables, Net, Non-Current 147,093 142,306
Equity Method Accounted Investments in Associates 43,178 42,260
Intangible Assets, Net 541,880 544,899
Capital gain 1,664,556 1,718,393
Property, Plant and Equipment, Net 3,142,063 3,135,745
Investment Property 1,488,200 1,471,344
Current tax assets, Non-Current 18,211 4,826
Deferred Tax Assets 284,187 260,102
Total Non-Current Assets 7,412,702 7,399,162
TOTAL ASSETS 9,617,834 9,721,573
Other Financial Liabilities, Current 619,501 1,179,132
Trade and Other Payables, Current 1,715,362 1,903,582
Notes and accounts payable to related companies, Current 1,316 974
Provisions, Current 41,723 22,624
Current Tax Payables 42,003 46,798
Current provisions for employee benefits 82,890 78,800
Other Non-Financial Liabilities, Current 27,323 84,317
Total Current Liabilities 2,530,119 3,316,226
Other Financial Liabilities, Non-Current 2,288,914 2,359,501
Trade and Other Payables, Non-Current 6,457 7,411
Provisions, Non-Current 117,187 111,321
Deferred Tax Liabilities 458,518 443,994
Current tax liabilities 0 0
Other Non-Financial Liabilities, Non current 68,975 70,564
Total Non-Current Liabilities 2,940,050 2,992,790
Issued Capital 2,321,381 1,551,812
Issued Premium 526,633 477,341
Other Reserves -592,354 -484,364
Retained Earnings (Accumulated Losses) 1,890,179 1,866,746
Equity Attributable to Equity Holders of Parent 4,145,839 3,411,534
Minority Interest 1,491 678
Total Equity 4,147,330 3,412,212
TOTAL EQUITY AND LIABILITIES 9,617,500 9,721,228
Maria Soledad Fernandez
SOURCE Cencosud S.A.
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