«During 2021 we consolidate our leadership by increasing market share in several of the businesses in the region»

Cencosud announced the financial results corresponding to 4Q21, a period in which it achieved an increase in revenue of 28.8%, reaching USD 4,330 million, and an adjusted EBITDA that increased by 28.9% compared to the last three months of 2020, reaching USD 524 million, reflected in the positive results of Chile, Argentina, Colombia and Peru.

The results are explained by gains in market share, the boost in online business in the region, the recovery of the shopping center business and changes in processes that have improved the efficiency of operations.

According to Matías Videla, general manager of Cencosud: "During 2021, we consolidated our leadership by increasing market share in several of the businesses in the region, through a differentiated value proposition, focusing on the quality of our products and excellent service to our customers, both in the physical and online channels. Our challenge is to continue improving our value proposition through investments in technology, artificial intelligence and data analysis to satisfy the needs of our customers, as well as increase efficiency in operations.”

Cencosud achieved an outstanding quarter and year in revenue and EBITDA, driven by positive results in 4 of the countries where we operate, with the exception of Brazil, whose market faced a more challenging economic environment starting in the second half of the year.

In Colombia during the quarter, revenue increased 13% in Colombian pesos and 15% in Chilean pesos year-on-year. This is explained by a more recovered macroeconomic context and with fewer restrictions associated with the pandemic, in addition to the 3 days without VAT that occurred during the last months of the year.

The Adjusted EBITDA margin increased 112 bps, mainly due to the dilution of expenses over income, driven by improvements in Supermarkets and Shopping Centers. This was offset by higher logistics costs and higher expenses associated with the opening of 4 new Home Improvement stores.

It should be noted that Cencosud continued to develop cost-saving initiatives and process improvements, while proactively addressing the difficulties of the global supply chain, caused by the pandemic.

Regarding the online channel, this year Cencosud continued to strengthen its proposal, maintaining high penetration rates despite the high comparison base. At this point it is important to highlight the launches of Apps for Spid and Paris, in Chile, Wong and Metro in Peru, the launch of the Santa Isabel online channel, the creation of Jumbo Prime, the start of operations of Cencosud Media, among others.

Finally, Matías Videla, CEO of Cencosud, indicated that "we continue to strengthen the Company's financial position, achieving the lowest level of leverage in the last decade, with a solid cash position that reached USD 1.8 trillion as of December 2021. All this thanks to the improvement in business profitability, but also due to more efficient working capital management."

Source: America Retail