Falabella SA (XSGO:FALABELLA) Q3 2024 Earnings Call Highlights: Record Profit and E-commerce Surge

In This Article:

  • Consolidated Revenue Growth: 7% year-over-year.

  • Home Improvement Revenue Growth: 9% year-over-year.

  • Retail Revenue Growth: 12% year-over-year.

  • Plaza Revenue Growth: 11% in Chile, 7% in Peru.

  • E-commerce Sales Growth: 20% increase in home improvement, 21% growth among sellers.

  • Consolidated NPL Ratio: 3.6%, a decrease of 62 basis points from the previous quarter.

  • Net Interest Income Growth: 1.4% year-over-year increase.

  • Payment Methods Increase: 14% year-over-year.

  • Gross Profit Expansion: 20% year-over-year.

  • EBITDA Growth: 1.8 times year-over-year, reaching $368 million.

  • Net Profit: $97 million, compared to a $5 million loss in the previous year.

  • EBITDA Margin: 11.6%, the highest since 2021.

  • Cash Position: $1.5 billion, with $1.3 billion invested in mutual funds and term deposits.

  • Leverage Ratio: Declined to 3.7 times, the lowest since Q2 2022.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Falabella SA (XSGO:FALABELLA) reported a year-over-year consolidated revenue growth of 7%, with notable increases in home improvement (9%), retail (12%), and Plaza's revenue in Chile (11%) and Peru (7%).

  • E-commerce sales showed significant growth, with a 20% increase in home improvement sales and a 21% growth among over 20,000 sellers, reflecting the success of their e-commerce strategy.

  • The company achieved an EBITDA growth of 1.8 times year-over-year, reaching $368 million, with a margin of 11.6%, the highest since 2021.

  • Falabella SA (XSGO:FALABELLA) improved its leverage ratio to 3.7 times, the lowest level since the second quarter of 2022, indicating stronger financial health.

  • The company reported a net profit of $97 million, a significant improvement from a $5 million loss in the third quarter of 2023, marking the highest performance since 2021.

Negative Points

  • Colombia's revenues were negatively impacted by a non-recurrent effect, affecting overall regional performance.

  • The financial services segment saw a contraction in the consolidated loan book, although risk levels improved.

  • Banking revenue decreased due to a lower level of loan book and lower interest rates, impacting overall financial performance.

  • Despite improvements, retail operations are still growing below historical and potential levels, indicating room for further recovery.

  • The company is facing challenges in maintaining profitability in certain segments, requiring continued focus on operational efficiency and inventory management.