What: Falabella reports exceptional 2024 performance with eight-fold profit increase to EUR 486 million, driven by retail growth in Peru and Chile.

Why it is important: This growth reveals how traditional retail groups can transform their operations while maintaining regional market leadership.

Falabella achieved remarkable results in 2024, with net profit reaching EUR 486 million, an eight-fold increase from 2023's EUR 61.28 million. The company's revenues grew 8.1% to EUR 12.28 billion, driven by strong retail performance, particularly in Peru (15.7% growth) and Chile (3.8% growth). Non-banking businesses showed robust growth of 10.3%, contrasting with banking operations' 3.1% decline. EBITDA nearly doubled to EUR 1.466 billion, reflecting successful gross profit growth and expense management. Looking ahead to 2025, the company plans to increase investments by 28%, focusing on physical store openings, renovations, technology, and logistics, demonstrating confidence in continued growth despite ongoing macroeconomic recovery.

IADS Notes: Falabella's eight-fold increase in net profit to EUR 486 million and 8.1% revenue growth demonstrates strong retail transformation in Latin America. This aligns with December 2024's findings about retailers successfully balancing growth with operational efficiency. The strong performance in key markets, particularly Peru's 15.7% retail growth and Chile's 3.8% increase, reflects November 2024's analysis of retailers leveraging regional strengths. The company's success in non-banking businesses, especially retail, shows how traditional retail groups can effectively optimize their business mix while maintaining market leadership.

Falabella Group multiplied its profit by eight in 2024, retail growing