CHILE: H1 profits down at retailer Cencosud
Half-year profits at Latin American retailer Cencosud have fallen 29% as higher costs and weaker second-quarter earnings from its supermarkets offset higher sales.
Cencosud, which has stores in five South American countries including its home market Chile and Brazil, reported net income of CLP90.6m (US$188,000) for the six months to the end of June, down 28.9%.
The retailer cited an increase in SG&A costs, higher financial charges and larger losses from foreign exchange variations.
However, operating income dropped 5.9% to CLP250.1m. Operating income from Cencosud's supermarket arm, which accounts for half of earnings, fell 12.2%. The retailer cited a jump in staff costs in Argentina and weaker results in Brazil, where it is integrating last year's acquisition of local supermarket chain Prezunic.
The purchase of Prezunic did help boost sales, which increased 23.1% to CLP4.37bn. Cencosud reported higher same-store sales at its hypermarkets and supermarkets in Chile, Brazil, Argentina and Peru.
- Rabobank's early view on Brexit impact on food
- New food waste standard will help monitor progress
- Kellogg uses Kashi to finally join party - comment
- Tyrrells' growth plans - CEO interview, part two
- How could a TTIP affect the food industry?
- Brexit – Live reaction from food industry
- Post, ConAgra 'held talks' over Lamb Weston merger
- Kellogg to invest in "next-generation innovation"
- Mars takes UK chocolate brands into trail mixes
- German dairy DMK to pursue cost-cutting plans
- Top Trends in Snacks, Confectionery, and Desserts; Exploring consumer and innovation trends in key categories
- Frozen Bakery Products Market by Type, Distribution Channel, & by Region - Global Trends & Forecast to 2020
- Singapore Food and Drink Report Q3 2016
- Fast Food in India
- Country Analysis Report: Saudi Arabia, In-depth PESTLE Insights