Thursday , December 3 2020

Cencosud's profit fell 60% due to the Argentine crisis



Changes in retail

The chain of the Chilean army blamed the impact of the recession in Argentina. However, there has been a great growth in sales from the internet

South American retail giant Cencosud said that its profits for September fell 58% and reached 49,387 million Chilean pesos (about $ 74 million) as a result of the exchange rate, resulting in inflation and inflation in Argentina.

In addition, Horst Paulmann stated that in the third quarter of the year, the company generated $ 6,690 million (US $ 10 million) in revenue, down 12 percent from the previous period.According to Diario Financiero de Chile.

The implementation of the IFRS IAS29 for Argentina – the impact of hyperinflationary economies – and the weakness in consumption, impact on revenues and the quarterly adjusted EBITDA margin.

With respect to the sale of available assets, the company recorded a lower profit than the sale of land during the quarter. However, "Efforts are underway to strengthen the balance sheet by optimizing the working capital and leverage plan promoted by the opening of the Department of Shopping Centers".

Despite the strong impact of the recession, the retail chain can emphasize a positive thing: online sales of retail sales units recorded a growth of 24.1% and a growth of 41.8%. year, Diario Financiero reports.

"Supermarkets and Home Improvement and Sales Stores", Jukbo Ahora and the example of Chile supermarkets where revenues increased due to the strong growth of the pilots with the last mile operators, accelerated the implementation of technological developments delivery times, "Cencosud said.

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