In This Article:
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Consolidated Revenue: $1.1 billion for Falabella Retail in Q4 2024.
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Home Improvement Revenue: $1.4 billion, a decrease of 9% year-over-year.
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Supermarket Revenue: $695 million, a decrease of 4% year-over-year.
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Mallplaza Revenue: $122 million, highest operation level in the last 4 years.
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E-commerce GMV: $2.8 billion over the last 12 months.
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3P Online Sales Growth: 7%, representing 28% of total online GMV.
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Cash Position Increase: 73% year-over-year.
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Inventory Levels: Decreased by 21% year-over-year.
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SG&A Decline: Year-over-year decline due to operational leverage plan.
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Cost Related to Revenue: Decreased 6% year-over-year.
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Gross Profit: Decreased 1% year-over-year.
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EBITDA: Increased 30% year-over-year, reaching $333 million.
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Net Profit: $80 million, 9.2 times higher than Q4 2023.
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Net Financial Debt: Decreased by 12%.
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Net Debt-to-EBITDA Ratio: 6.5%.
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Investment Plan Reduction: 24% decrease versus 2023 plan.
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Store Openings: 1 new department store in Iquitos, Peru; 10 new stores planned by year-end.
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Loyalty Program Participants: Nearly 19 million.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Falabella SA (XSGO:FALABELLA) reported a significant increase in cash position, up 73% year-over-year, enhancing financial stability.
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The company achieved a 30% year-over-year increase in consolidated EBITDA, reaching $333 million.
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Falabella's e-commerce platform achieved $2.8 billion in GMV over the last 12 months, with 3P online sales growing by 7%.
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The loyalty program has successfully reached nearly 19 million participants, boosting customer retention and transaction levels.
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The company has reduced inventory levels by 21% year-over-year, which is expected to improve future margins.
Negative Points
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Falabella SA (XSGO:FALABELLA) experienced a slowdown in consumption trends, impacting operations, particularly in Home Improvement and Retail sectors in Chile and Peru.
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Supermarket revenue decreased by 4%, and Home Improvement revenue fell by 9%, influenced by the construction sector downturn.
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Gross profit decreased by 1%, with significant declines in the Home Improvement and Retail segments.
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The company was downgraded below investment grade in the last quarter of 2024, affecting its financial outlook.
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High inflation and interest rates have led to increased risk costs and restricted credit origination, impacting revenue.
Q & A Highlights
Q: Can you provide an update on your asset sales, specifically regarding the shopping malls in Peru, and how this will impact Falabella's leverage? A: Alejandro Arze Safian, CEO of Home Improvement, explained that the process is advancing as expected, with legal requirements being met. The transaction aims to create value by consolidating assets under Plaza's management, which has shown operational success. The impact on Falabella's leverage will depend on market conditions at the time of execution. Benoit De Grave, CTO, added that the asset monetization plan aims to raise $800 million to $1 billion, with progress being made in various processes.