Wednesday , December 2 2020

lost $ 8.4 million in the third quarter

The third quarter, more challenging than expected, showed the results of Cencosud.

Over the period July-September, the company recorded losses of $ 5.6123 million (about $ 8.4 million) under circumstances that in the same period in 2017 reported revenue of approximately $ 28.354 million.

This is the first loss reported for three years for a quarterly performance. The previous one was registered in the third quarter of 2015, although with a much larger decline of 43 million dollars.

The outcome provided yesterday to CMF is mainly explained by the situation in Argentina, in particular by the effect of the application of the IFRS (IAS 29), which introduces an accounting adjustment for hyperinflationary economies. Dollar devaluation and low consumption were added, affecting Ebitda's earnings and adjusted quarterly profit margins.

Without this adjustment, the result would be $ 15,339 million. "Explained with a decrease in operating income, a lower result of exchange rate fluctuations and a lower asset revaluation partly offset by lower income tax expense a / a ", the company added.

In the segment "Other Operating Income", they decreased by 41.8% due to a lower revaluation of assets a / a of SDK 14,516 million, due to the delay of future leasing flows in Tower Costanera's offices for 6 months.

In connection with the sale of disposable assets during the quarter, the company recorded a negative change of $ 3,794 million due to a lower sale of land. In the nine months, Cencosud has sold eight properties for a total of $ 6.1 million.

Despite this lower profit, "work continues to strengthen the balance by optimizing working capital and the debt reduction plan guided by the opening of the stock market division of the shopping malls," Cencosud said in a statement.

In terms of country results, revenue in Chile increased by 1.4% due to supermarket growth and home improvement, partly offset by lower revenues from individual stores (-6.0%, SSS: -6.9%) and shopping centers (-2.5%), while in Argentina revenues grew by 31.1% in local currency (while in Chilean peso fell by 25.4% due to devaluation) in the area of ​​financial services, home improvement, supermarkets and shopping centers.

Meanwhile, in Brazil, the lower consumption in the areas where the activity takes place affected revenues with a 3.1% decrease in local currency mainly due to the post-global effect and a slight decrease in the average ticket due to the dynamics of the discounts in addition to the closure at four stores,

Colombia also experienced a drop in revenue, mainly in the areas of Supermarkets, Financial Services and Shopping Centers, partly offset by increased home improvement. Finally, in Peru, all business compartments showed good performance, reflecting a 7.1% increase in local currency earnings.

With all this, earnings for the third quarter reached $ 74.3 million, down 58% from the same period in 2017

What showed positive performance was Internet sales, which rose by 24.1% in the quarter, boosted by the Jumbo Ahora service and pilots with last-mile companies.

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