Chile, Argentina, Peru and the United States drive Cencosud's revenue growth by 5.3% in the second quarter

Business Wire

2 days ago

SANTIAGO, Chile--(BUSINESS WIRE)--Cencosud S.A. today reported its results for the second quarter of 2025, with revenues of CLP $4,171,343 million (USD 4,405 million), representing growth of 5.3% compared to the same period last year. Excluding the impact of hyperinflation in Argentina, revenues increased 7.2%. This performance was driven by revenue growth across all business units in Chile and Argentina, along with an acceleration in Colombia, which posted its largest sales increase since 2022. In the United States, revenues grew to historic levels (+9.0% in dollars, local currency) due to the opening of three new stores.
A key milestone for the period was the performance of private label products, which achieved a record penetration of 18%, the result of the ongoing development of new products and a value proposition focused on quality, with Cuisine & Co. standing out. Additionally, online sales grew 7.8%. During the period, the Company advanced its organic growth plan, opening five new stores in the region, including three stores in the United States, one GIGA store in Brazil, and a new Jumbo store in Colombia.
'This quarter we highlight significant progress in our businesses and strategic priorities across all the countries where we operate. We continue to move forward with determination in our strategy and in strengthening our multi-format retail ecosystem', said Cencosud's Chief Executive Officer, Rodrigo Larraín.
Reported Net Income for the quarter reached CLP $103,047 million (USD 109 million), while Distributable Net Income was CLP $69,750 million (USD 73.7 million), reflecting a year-over-year increase of 10.1%.
Meanwhile, consolidated Adjusted EBITDA fell 5.5% year-over-year, mainly due to the accounting impact of hyperinflation adjustments in Argentina. Excluding this effect, Adjusted EBITDA showed real year-over-year growth of 1.3%, reflecting the resilience of the business.
In line with this commitment, Cencosud received recognition as Chile's No. 1 Citizen Brand, according to Cadem, a milestone that reinforces Cencosud's conviction to continue enhancing its customer experience and actively contributing to the development of the communities where it operates.
Highlights by Country
Argentina: All business units posted real sales increases above inflation in local currency. Notably, supermarket revenues grew 36.4% above inflation, even when excluding the recent acquisition of the Makro wholesale chain.
Brazil: Adjusted EBITDA margin expanded by 40 basis points to 5.3%, partly driven by the gain from the sale of assets in Minas Gerais.
Chile: Achieved its seventh consecutive quarter with a double-digit Adjusted EBITDA margin of 11.6%, thanks to the solid performance of Paris department stores and shopping centers, efficiency initiatives, e-commerce profitability improvements, and the expansion of the retail media business.
Colombia: Continued to show significant improvements in results. The divestment of the service station business in Colombia was completed, and the Adjusted EBITDA margin improved by 357 bps year-over-year, reaching 2.1%, driven by greater profitability in supermarkets, home improvement, and financial services.
Peru: Posted the highest second-quarter Adjusted EBITDA margin in its history, reaching 11.8%. Online sales increased 35.5% compared to the same period last year.
United States: Revenues grew to historic levels, with a 9.0% increase in local currency, driven by the opening of three new stores and a 24.8% growth in online sales.
About Cencosud
Cencosud, whose purpose is to ' serve extraordinarily at every moment ', is one of the largest and most prestigious retailers in the Americas. It operates in six countries, with more than 120,000 employees, 1,510 stores, and over 3.6 million m² of sales area. Its multi-format strategy covers Supermarkets, Home Improvement Stores, Department Stores, Shopping Centers, and Financial Services. In addition, it promotes innovative business lines such as Cencosud Media and private label brands, integrating technology to enhance the customer experience.