CHILE: Cencosud ends year of lower profits with Q4 rise
Cencosud to "focus on improving results in Colombia and Brazil" in 2014
Chile-based retailer Cencosud saw profits fall in 2013, although its earnings jumped in the fourth quarter.
The company, which has stores in five South American markets, booked net profit of CLP229.77bn (US$419.1m) for 2013, down 15.8% on 2012.
Cencosud reported increased finance costs after its debt grew to pay for businesses including its acquisition of Carrefour's business in Colombia a year ago. Its losses from foreign exchange were also higher.
Net sales in 2013 were up 13% at CLP10.34bn thanks to the Carrefour outlets in Colombia, the opening of supermarkets and the retailer's new department stores in Peru.
In the last three months of the year, Cencosud saw its net income jump 40% to CLP158.1m. Cencosud revenue increased 11% to CLP2.86bn.
"Our results for the fourth quarter of 2013 highlight the strength of our position as a leading supermarket retailer in Chile and Argentina, as well as our expertise in home improvement, department stores, shopping centres and financial services right across South America," Cencosud said.
"In 2014, our focus will be on improving results in Colombia and Brazil while also lowering our leverage through operational excellence, reduced capex and the strategic monetization of non-core assets. We remain well-positioned in the South American retail market, with unique scale and diversity, and are confident that 2014 will be a successful year."
In January, Cencosud said it would be investing less in expansion this year as it focuses on consolidating its Brazilian and Colombian operations.
Introduction Food Retail in Chile industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The profi......
Introduction Food Retail in South America industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). T......
Introduction Food Retail in Argentina industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The p......
Trends observed during the review period continued during 2012. Modern grocery retailers such as supermarkets and hypermarkets continued to expand to lower-middle income districts in Lima as well as p...
The trends observed during 2013 in grocery retailers, continued gaining ground in 2014. Companies continued to focus their expansion throughout the country through discount and convenience formats, wi...
The trends seen in grocery retailing in Peru in 2012 remained prevalent in 2013. Growth continued to be fuelled by expansion to lower income districts in Lima, as well as other cities outside the capi...
The Chilean economy experienced a slowdown in 2013 compared to the pace of growth registered in the 2010-2012 period. However, this change in the economic performance in the country’s economy was not ...
This report brings together consumer insight and market data to provide a comprehensive brief of the Argentine Dairy Food sector. This allows for the rapid identification of key growth opportunities a...
- Analysis: Is Heinz, Kraft merger "a growth story"?
- McDonald's antibiotics move may be seminal moment
- M&A Watch: Who could be on 3G Capital's radar?
- Viewpoint: Faber-led Danone gets realistic
- Green Giant talk underlines pressure at Gen Mills
- UPDATE: Heinz, Kraft strike merger agreement
- Kraft "in buyout talks" with Heinz owner 3G
- Fatal explosion at French desserts firm Senagral
- Infographic: Heinz, Kraft unveil combined business
- Buffett: Kraft Heinz to withstand health focus