What: Falabella Group achieved a 135% increase in profits in Q2 2024, reducing its debt by nearly half and improving operational efficiency across its business units.

Why it is important: This significant profit growth and debt reduction highlight Falabella's successful strategic turnaround, showcasing its resilience and ability to adapt to economic challenges. The results reflect the effectiveness of its focus on profitability, operational improvements, and selective expansion, positioning the company for continued growth.

Falabella Group reported a remarkable 135% increase in Q2 2024 profits, reaching USD 122 million, driven by strong revenue growth, improved margins, and effective cost management. The company's consolidated revenues rose 8% to USD 3.074 billion, with significant contributions from its Home Improvement, Retail, and Tottus sectors. Falabella also achieved a notable reduction in its debt, cutting its debt ratio to 4.7 times Net Financial Debt over EBITDA from a peak of 8.7 times in June 2023. The company's focus on selective expansion, such as opening new stores and strengthening its omnichannel presence, played a key role in this financial turnaround.

Falabella group reports 135% profit growth in Q2 2024, significantly reduces debt