Chilean retailer Cencosud has seen full-year profits tumble 30% due to one-off items that boosted the company’s bottom line in 2007.
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Cencosud, which has stores in Chile, Argentina, Brazil, Peru and Colombia, said on Friday (6 February) that net income reached CHP160.13bn (US$263.8m) in 2008, down from CHP228.82bn a year earlier.
The company said that a gain from the sale of a stake in Mall Plaza helped push up profits in 2007. Excluding such one-off items, net income inched up 0.5%.
Operating profit rose 21% in 2008 to CHP312.1m as higher revenues in Argentina boosted Cencosud’s earnings in the country.
Cencosud saw its profits in Argentina rise by more than a quarter on the back of a 51.2% increase in sales. The retailer’s group sales jumped almost 49% to CHP6.13 trillion.
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By GlobalDataChile accounts for some 43% of Cencosud’s revenues, while Argentina makes up 35.1%. Brazil and Peru make up 11.2% and 10% of sales respectively, while Colombia remains a minor market.
Cencosud faces stiff competition in its own backyard with Wal-Mart buying a majority stake in its nearest rival, D&S, last month.
