Chile-based retailer Cencosud has booked higher half-year sales but posted lower operating income from its supermarket stores and a fall in net profit on the back of costs from M&A and forex losses.
Cencosud, which has stores in five South American markets, reported a 14% increase in revenues to CLP4.98bn (US$9.8m) for the six months to the end of June. Supermarket sales were up 16.7% at CLP3.73bn. Same-store sales grew in each country, except Colombia.
However, operating income from Cencosud’s supermarkets fell 13.7% to CLP114.83bn. The devaluation of the Argentinian peso and the Brazilian real against the Chilean peso hit profits from the retailer’s operations in those countries. A price freeze in Argentina also weighed on earnings there.
Foreign exchange losses were a factor in Cencosud’s lower first-half net income, which stood at CLP28.04bn, down 69% on the year. The cost of acquisitions, including the deal to buy Carrefour’s operations in Colombia, also had an effect on the bottom line.
Click here for the full statement from Cencosud.