Retailer Cencosud sees LatAm 'recovery' in 2024
Reuters
Published Mar 06, 2024 12:01PM ET
Updated Mar 06, 2024 01:17PM ET
By Kylie Madry
(Reuters) -Chilean retailer Cencosud will have a "recovery year" in Latin America in 2024, particularly in the first half, Chief Financial Officer Ines Ostenrieder said on Wednesday.
Last year was particularly challenging, Ostenrieder told analysts on a call, one day after the Santiago-based company posted a 35% drop in annual net profits due to hyperinflation in Argentina and slower consumption across the board.
Excluding the effects of Argentine inflation, Cencosud's fourth-quarter results topped analysts' expectations.
Sales in Argentina grew double digits in the quarter, while they climbed 5% in Brazil and 8.5% in Colombia, when converted to Chilean pesos.
Cencosud's 2024 outlook is "realistic" considering the ongoing macroeconomic challenges, Ostenrieder said, citing estimates for slightly weaker revenues and adjusted core earnings, or earnings before interest, taxes, depreciation and amortization (EBITDA).
"Yet there could be upside when looking at operations excluding Argentina," JPMorgan analysts said of the forecast in a research note.
"When excluding Argentina from the 2023 base and 2024 projections, Cencosud sees sales growing around 9%, while adjusted EBITDA should grow 18% year on year."
Cencosud shares rose more than 3% in afternoon trading.
The retailer expects "slightly improved" results this year for its department stores and shopping centers in Chile, investor relations manager Marisol Fernandez said.
Cencosud's supermarkets in Chile will also face a challenging year, though sales were up in the first few months, she noted.
In the United States, Cencosud is eyeing "sustained growth," Chief Executive Rodrigo Larrain said, particularly in "adjacent markets," he said.
It is also working to boost profitability in Colombia and Brazil, Larrain said, without elaborating.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.