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Losses of $ 62,285 million – $ 33,617 million excluding the effect of hyperinflation in Argentina – reported the supermarket group, operator of stores and shopping centers Cencosud, linked to the Paulmann family, at the end of the first quarter. This, despite a 10% increase in their income.
The company was in controversy because its subsidiary accepted the employment protection law and, at the same time, distributed dividends, although it finally gave up using the mechanism.
The performance of the quarter is explained by higher financial expenses, which includes the extraordinary payment of US $ 68 million for the repurchase of international bonds. In addition, it includes the expense of US $ 30 million due to the effect on the coverage to which said bonds were assigned, Cencosud revealed. Added to this is a lower value for a revaluation of investment properties.
There was also an increase in the exchange rate loss, which is explained by the greater exposure and volatility of the dollar in the period, in addition to a change in accounting exposure.
Another factor that influenced the sale of the financial retail business in Peru the previous year (which increased the comparison base).
The company also reported that it has been affected by the pandemic in the countries where it operates.
In its reasoned analysis, the company also analyzed the context of the effects of COVID-19 in March, both in Chile and in the countries where it operates.
“The countries began the implementation of a series of measures, associated with the health security of the population, including, among others, total or partial quarantine. As a consequence of the foregoing, Cencosud reported that the activities of shopping centers and department stores were affected, as well as home improvement operations in Argentina and Colombia, which has involved the closure of 126 stores of which 79 correspond to Chile ”, informed the company chaired by Horst Paulmann.
At the same time, the group highlighted the increase in online channels in all formats. He highlighted an increase in remote supermarket sales, which grew 52.1%, and the home improvement and department store divisions increased 36.9% and 59.1%, respectively.
“In this way, Cencosud’s consolidated online sales during the first three of the year registered a growth of 52.4%”, complemented the firm.
Another milestone that the company highlighted was that its recurring debt ratio, which reached 4.16 times, “was the lowest recorded by Cencosud since obtaining the investment grade in 2012”.
By disaggregating the numbers by country, revenues in Chile grew 5.0%, reflecting increases in sales of all business units in the months of January and February, although the situation in March changed the numbers. The supermarkets area recorded an increase of 12.6%, the best performing business line, totaling revenues of US $ 743,991 million. This was influenced “by the uncertainty associated with the supply of products.” In home improvement, it increased its results by 2.4%. Department stores and shopping malls registered falls of 11.5% and 15.4%, respectively.
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