What: Cencosud's multi-market strategy and digital transformation drive significant profit turnaround in Q1 2025, reaching US$131 million.

Why it is important: The results validate Cencosud's investment in digital transformation and regional expansion, while highlighting the growing importance of own-brand development in driving retail profitability across multiple markets.

Cencosud has demonstrated remarkable financial performance in the first quarter of 2025, achieving a consolidated revenue of 4,031,583 million Chilean pesos (US$4,185 million), representing a 2.4% increase compared to the previous year. The company successfully reversed its previous losses, recording a net profit of 126.442 billion Chilean pesos (US$131 million). This turnaround was driven by strong revenue growth across multiple markets, particularly in Chile, the United States, Argentina, and Peru. The company's digital channel showed impressive growth, processing over 7 million tickets and achieving an 8.8% sales increase compared to 2024. Notably, online sales surged by 30% in the United States and 44% in Peru, while Chile contributed 7.5% e-commerce growth. The company's operational efficiency improved significantly, with adjusted EBITDA reaching 376.117 billion Chilean pesos (US$390 million), marking a 10.4% year-over-year increase. Own-brand performance was particularly strong, representing 17.3% of total sales, with successful launches in both food and non-food categories. The shopping centre segment maintained robust growth, achieving a remarkable 98.5% occupancy rate in Chile.

IADS Notes: Cencosud's strong Q1 2025 performance aligns with broader positive trends in Latin American retail. In August 2024, the company demonstrated its growth trajectory with a 75.1% profit increase and 9.9% revenue growth to $4.24 billion, driven by digital sales and private label expansion. This momentum has continued into 2025, reflecting similar patterns seen across the region, as evidenced by Falabella Group's remarkable eight-fold profit increase to €486 million in 2024, with particularly strong performance in shared markets like Peru (15.7% growth) and Chile (3.8% growth). These results underscore how major Latin American retailers are successfully leveraging digital transformation and private label strategies while maintaining robust regional market presence.

Cencosud posts US$131 million in profits in Q1 2025