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Cencosud Reports Third Quarter 2012 Results

Tuesday, November 20, 2012 6:22 AM


Net income increased 20%, reaching CLP 66,913 million Revenue up 18% to CLP 2,202 billion, driven by consolidation of acquisitions and Argentina same store sales Cencosud agreed to acquire Carrefour Colombia, the country's second-largest supermarket operator Company recorded tax provision of CLP 4,173 million as a result of tax reform in Chile

SANTIAGO, Chile, Nov. 20, 2012 /PRNewswire/ -- Cencosud S.A. (NYSE: CNCO), a leading multi-format Latin American retailer with presence in five countries, announced today its consolidated financial results for the third quarter of 2012. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with International Financial Reporting Standards (IFRS). Variations refer to the comparison between 3Q2011 and 3Q2012.

  • Net income increased 20% versus 3Q11, reaching CLP 66,913 million reflecting higher operating income and higher income from foreign exchange variations.
  • The Company reported EBITDA of CLP 176,995 million, up 28% YoY, driven by improved results in Paris Department Stores, Shopping Centers and Home Improvement operations. Cencosud revenue increased 18% YoY to CLP 2,202 billion, after the consolidation of Prezunic and Johnson, double-digit Same Store Sales (SSS) in Argentina and the opening of 76 new stores versus 3Q11.
  • Operating Income totaled CLP 135,498 million, up 12% versus 3Q11, primarily due to improved operating income from Home Improvement and Shopping Centers, partially offset by Supermarkets and Financial Services.
  • Gross Margin was stable from a year ago, at 28.4%, as improved margins in Home Improvement and Shopping Centers offset lower margins in Department Stores and Financial Services
  • The Paris department stores' EBITDA margin was 4.4% in 3Q12, while Johnson EBITDA was negative CLP 3,383 million.
  • In October, the Company entered into a stock purchase agreement to acquire Carrefour's operations in Colombia, including 72 hypermarket stores, 16 convenience stores, four cash and carry stores and gas stations. The transaction will make Cencosud Colombia's second-largest supermarket operator. Cencosud financed the acquisition with a $2.5 billion credit line from JP Morgan.
  • Cencosud plans to issue an international bond worth as much as USD 1 billion, followed by a capital increase worth as much as USD 1.5 billion, expected to be carried out in the first half of 2013.
  • Costanera Center, South America's largest shopping mall, reported its first full quarter of operations.  As of September 2012, the mall had 140,000 square meters of GLA, with an occupancy rate of 93%
  • In August, 2012, our Brazilian supermarket chain Prezunic was rated as a Great Place to Work, highlighting the commitment and satisfaction of Prezunic's staff.
  • Cencosud recorded a tax provision in the third quarter, due to the recent tax reform in Chile which raised rates on corporations. This provision amounted to CLP 4,173 million as of September 30, 2012. Our position as a leading retail brand in Chile and track record of prudent financial management will allow the Company to manage the impact of higher taxes going forward.

Consolidated Revenues

Consolidated revenues were CLP 2,202 billion in the third quarter of 2012, compared with CLP 1,863 billion in the third quarter of 2011, an 18% increase YoY. This increase was driven by double-digit SSS in Argentina, the acquisitions of Prezunic and Johnson, revenues coming from Costanera Shopping center, positive SSS across almost all business lines, and the 20% increase in selling space in 3Q12 versus the same period last year.  

  • Supermarket revenues in 3Q12 increased 17.3% YoY, reaching CLP 1,616 billion, driven by the consolidation of Prezunic, double-digit SSS in Argentina (+16.9%), positive SSS in Chile (+5,2%) and Peru (1.8%), and the opening of 68 new supermarkets in the region since September 2011 (+12% increase in selling space).  
  • Home Improvement revenues increased 15.3% YoY, reaching CLP 261 billion in 3Q12.  The growth reflects double-digit SSS growth in Argentina (+28.3%) and Colombia (+10.2%) and positive SSS in Chile (+8.6%). Home Improvement revenues also benefited from the opening of two Easy stores, one in the Costanera Center shopping mall in June, and the other one in the Concepción, in the south of Chile, in August.
  • Department Store revenues totaled CLP 203 billion, +30.0% YoY, driven by the consolidation of Johnson, the opening of three new Paris Stores since 3Q11 (Osorno, Costanera and Rancagua) and a 5.2% increase in SSS. Paris stores account for 10.6% of the sales growth.
  • Shopping Center revenues grew 47.9% YoY, reaching CLP 46 billion after the opening of the Costanera Center and Portal Osorno in Chile.
  • Financial Services operations showed an increase in revenues of 5.5% YoY, totaling CLP 72 billion, reflecting higher revenues from Argentina and Peru due to a larger portfolio versus a year ago.

Please visit www.cencosud.cl/inversionistas.htm to obtain the full third quarter earnings release.

The company will hold a conference call to review the 3Q12 results on Wednesday, November 21, 2012 at 11:00am Santiago /9:00am Eastern Time with a live webcast available through its website.  The conference call dial-in is +1-877-270-2148 (United States) +1-412-902-6510 (international).

A webcast of the conference call will be available online at http://www.cencosud.cl/eng/inversionistas.htm beginning at 1:00 p.m. Santiago/ 11:00 a.m. Eastern time.

About Cencosud S.A.

Cencosud is a Latin America multiformat – multibrand retailer, based on its revenues, selling space, number of stores and real estate in the countries where it operates. Cencosud operates through different store formats including supermarkets, home improvement, shopping centers, financial services and department stores. Cencosud headquarters are in Santiago, Chile, and the Company

Investor Relations
Phone: +56-2-959-0545
Mariasoledad.fernandez@cencosud.cl


CONSOLIDATED INCOME DATA

(In millions of Chilean pesos as of September 30th, 2012)






Third Quarter


Nine months ended September 30


2012

2011


2012

2011


MM CLP

MM CLP


MM CLP

MM CLP

Net revenues

2,201,736

1,863,268


6,568,429

5,409,116

Cost of sales

-         1,576,345

-        1,335,448


-        4,715,820

-        3,855,615

Gross profit

625,392

527,820


1,852,610

1,553,501

Selling and administrative expenses

-             510,103

-             413,595


-        1,520,681

-        1,194,912

Other income by function

20,005

10,284


61,927

34,323

Other gain (Losses)

204

-                   3,000


-                   8,307

-                   5,657

Operating income  

135,498

121,510


385,548

387,255

Participation in profit or loss of equity method associates

1,247

910


3,487

2,600

Financial Income

2,097

2,460


6,785

8,373

Finance Costs [for Non-Financial Activities]

-                48,303

-                34,301


-             146,317

-             103,585

Income (loss) from foreign exchange variations

6,487

-                   8,116


3,880

-                10,074

Result of indexation units

-                   2,652

-                   4,945


-                16,681

-                21,722

Non-operating income (loss)

-                41,124

-                43,993


-             148,845

-             124,407







Income before income taxes

94,373

77,517


236,703

262,848

Income taxes  

-                27,461

-                21,755


-                76,213

-                73,853







Profit (Loss)

66,913

55,762


160,490

188,994







Profit (Loss) Attributable to Equity Holders of Parent

66,500

53,512


157,082

180,837

Profit (Loss) Attributable to Minority Interest

413

2,250


3,408

8,158

Net income per share

28.6

23.6


67.5

79.9

Number of shares outstanding (in millions)

2,507

2,264


2,507

2,264




CENCOSUD S.A.

CONSOLIDATED BALANCE SHEETS

(In millions of Chilean pesos as of September 30th, 2012 )








Sep-12

Dec 2011



MM Ch$

MM Ch$

Current Assets:




Cash and Cash Equivalents


100.932

145.315

Other Financial Assets, Current


53.749

221.929

Other Non-Financial Assets, Current


11.925

12.259

Trade and Other Receivables, Net, Current


918.305

930.381

Accounts receivable from related parties, Current


881

82

Inventories


800.795

769.472

Tax Assets, Current


18.757

6.962

Total Current Assets


         1,905,344

2,086,401

Non-Current Assets:




Other Financial Assets, Non-Current


34.215

46.98

Other Non-Financial Assets, Non-Current


38.727

35.052

Trade and Other Receivables, Net, Non-Current


143.278

194.444

Equity Method Accounted Investments in Associates


40.503

38.83

Intangible Assets, Net


535.788

526.688

Capital gain


1,062,691

1,001,779

Property, Plant and Equipment, Net


2,334,211

2,260,289

Investment Property


1,412,116

1,310,143

Current tax assets, Non-Current


9.391

0

Deferred Tax Assets


201.266

154.163

Total Non-Current Assets


         5,812,186

5,568,367





TOTAL ASSETS


         7,717,530

            7,654,769

Current Liabilities:




Other Financial Liabilities, Current


473.649

578.823

Trade and Other Payables, Current


1,426,418

1,550,821

Notes and accounts payable to related companies, Current


1.002

1.448

Provisions, Current


38.91

17.475

Current Tax Payables


27.447

40.49

Current provisions for employee benefits


81.616

68.65

Other Non-Financial Liabilities, Current


57.668

71.05

Total Current Liabilities


         2,106,710

2,328,756

Non-Current Liabilities:




Other Financial Liabilities, Non-Current


1,804,717

1,872,951

Trade and Other Payables, Non-Current


8.684

11.151

Provisions, Non-Current


79.642

83.468

Deferred Tax Liabilities


348.412

313.047

Other Non-Financial Liabilities, Non current


70.89

82.722

Total Non-Current Liabilities


         2,312,346

            2,363,339

Equity:




Issued Capital


1,791,804

927.804

Issued Premium


237.348

477.341

Other Reserves


-522.349

-202.722

Retained Earnings (Accumulated Losses)


1,790,334

1,672,500

Equity Attributable to Equity Holders of Parent


         3,297,137

2,874,923

Minority Interest


1.337

87.75

Total Equity


         3,298,474

            2,962,673





TOTAL EQUITY AND LIABILITIES


         7,717,530

7,654,769



SOURCE Cencosud S.A.

(Source: PR Newswire )
(Source: Quotemedia)

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