What: The Chilean company revealed that its Q1 profit reached USD 192 million, a 23.5% drop compared to the same period in 2022.

Why it is important: Despite the challenging macroeconomic environment in South America and slowdown in consumption, Cencosud maintained double-digit revenue.

The decrease in profit was a result of an increase in financial expenses, mainly attributed to the company’s acquisitions of The Fresh Market and GIGA Atacado as well as the negative impacts of exchange fluctuations in the region.

Cencosud recorded a 17.9% increase in revenue and closed the period with 161 million tickets which represented a 18.1% increase. The retailer also saw online revenues increase 7.4% with online sales totaling USD 380 million and online tickets amounting to 5.5 million.

The CEO of Cencosud stated that the company will continue to promote its efficiency measures and  omnichannel as a complement to its physical stores as it navigates the challenging macroeconomic environment in the region.

Cencosud sees its profits fall by more than 20%