(Reuters) – Chilean retailer Falabella on Tuesday posted a net profit for the first quarter, reversing a year-ago loss, boosted by operations in Peru.
The store operator and financial services provider’s net profit reached 58.50 billion pesos ($59.55 million) for the January to March period.
The result was driven by an operating profit for the retailer’s Peru unit, while its units in Chile, Colombia and Brazil trimmed year-ago losses.
Revenues, meanwhile, were up 4% to 2.86 trillion pesos, largely explained by the foreign-exchange effect of the weaker Chilean peso against stronger local currencies.
Falabella saw increased visits to shopping centers and reduced its inventories by 11% in the quarter, CEO Alejandro Gonzalez said in a statement.
Its loan portfolio gained 1% year-over-year, though delinquent payments also rose slightly to 4.4%.
Core earnings, or earnings before interest, taxes, depreciation and amortization (EBITDA), more than doubled to 296.95 billion pesos.
Falabella operates supermarkets, department and home improvement stores, as well as delivery and financial services across Latin America, including in Argentina, Brazil, Colombia, Mexico, Peru, Uruguay and its home market of Chile.
($1 = 982.38 Chilean pesos at end-March)
(Reporting by Kylie Madry; Editing by Brendan O’Boyle)
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