Cencosud Reports Third Quarter 2012 Results

SANTIAGO, Chile, Nov. 20, 2012 /PRNewswire/ -- Cencosud S.A. (NYSE: [ CNCO ]), a leading multi-format Latin American retailer with presence in five countries, announced today its consolidated financial results for the third quarter of 2012. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with International Financial Reporting Standards (IFRS). Variations refer to the comparison between 3Q2011 and 3Q2012.

Net income increased 20% versus 3Q11, reaching CLP 66,913 million reflecting higher operating income and higher income from foreign exchange variations.
The Company reported EBITDA of CLP 176,995 million, up 28% YoY, driven by improved results in Paris Department Stores, Shopping Centers and Home Improvement operations. Cencosud revenue increased 18% YoY to CLP 2,202 billion, after the consolidation of Prezunic and Johnson, double-digit Same Store Sales (SSS) in Argentina and the opening of 76 new stores versus 3Q11.
Operating Income totaled CLP 135,498 million, up 12% versus 3Q11, primarily due to improved operating income from Home Improvement and Shopping Centers, partially offset by Supermarkets and Financial Services.
Gross Margin was stable from a year ago, at 28.4%, as improved margins in Home Improvement and Shopping Centers offset lower margins in Department Stores and Financial Services
The Paris department stores' EBITDA margin was 4.4% in 3Q12, while Johnson EBITDA was negative CLP 3,383 million.
In October, the Company entered into a stock purchase agreement to acquire Carrefour's operations in Colombia, including 72 hypermarket stores, 16 convenience stores, four cash and carry stores and gas stations. The transaction will make Cencosud Colombia's second-largest supermarket operator. Cencosud financed the acquisition with a $2.5 billion credit line from JP Morgan.
Cencosud plans to issue an international bond worth as much as USD 1 billion, followed by a capital increase worth as much as USD 1.5 billion, expected to be carried out in the first half of 2013.
Costanera Center, South America's largest shopping mall, reported its first full quarter of operations. As of September 2012, the mall had 140,000 square meters of GLA, with an occupancy rate of 93%
In August, 2012, our Brazilian supermarket chain Prezunic was rated as a Great Place to Work, highlighting the commitment and satisfaction of Prezunic's staff.
Cencosud recorded a tax provision in the third quarter, due to the recent tax reform in Chile which raised rates on corporations. This provision amounted to CLP 4,173 million as of September 30, 2012. Our position as a leading retail brand in Chile and track record of prudent financial management will allow the Company to manage the impact of higher taxes going forward.

Consolidated Revenues

Consolidated revenues were CLP 2,202 billion in the third quarter of 2012, compared with CLP 1,863 billion in the third quarter of 2011, an 18% increase YoY. This increase was driven by double-digit SSS in Argentina, the acquisitions of Prezunic and Johnson, revenues coming from Costanera Shopping center, positive SSS across almost all business lines, and the 20% increase in selling space in 3Q12 versus the same period last year.

Supermarket revenues in 3Q12 increased 17.3% YoY, reaching CLP 1,616 billion, driven by the consolidation of Prezunic, double-digit SSS in Argentina (+16.9%), positive SSS in Chile (+5,2%) and Peru (1.8%), and the opening of 68 new supermarkets in the region since September 2011 (+12% increase in selling space).
Home Improvement revenues increased 15.3% YoY, reaching CLP 261 billion in 3Q12. The growth reflects double-digit SSS growth in Argentina (+28.3%) and Colombia (+10.2%) and positive SSS in Chile (+8.6%). Home Improvement revenues also benefited from the opening of two Easy stores, one in the Costanera Center shopping mall in June, and the other one in the Concepción, in the south of Chile, in August.
Department Store revenues totaled CLP 203 billion, +30.0% YoY, driven by the consolidation of Johnson, the opening of three new Paris Stores since 3Q11 (Osorno, Costanera and Rancagua) and a 5.2% increase in SSS. Paris stores account for 10.6% of the sales growth.
Shopping Center revenues grew 47.9% YoY, reaching CLP 46 billion after the opening of the Costanera Center and Portal Osorno in Chile.
Financial Services operations showed an increase in revenues of 5.5% YoY, totaling CLP 72 billion, reflecting higher revenues from Argentina and Peru due to a larger portfolio versus a year ago.

Please visit [ www.cencosud.cl/inversionistas.htm ] to obtain the full third quarter earnings release.

The company will hold a conference call to review the 3Q12 results on Wednesday, November 21, 2012 at 11:00amSantiago /9:00am Eastern Time with a live webcast available through its website. The conference call dial-in is +1-877-270-2148 (United States) +1-412-902-6510 (international).

A webcast of the conference call will be available online at [ http://www.cencosud.cl/eng/inversionistas.htm ] beginning at 1:00 p.m.Santiago/ 11:00 a.m. Eastern time.

About Cencosud S.A.

Cencosud is a Latin America multiformat – multibrand retailer, based on its revenues, selling space, number of stores and real estate in the countries where it operates. Cencosud operates through different store formats including supermarkets, home improvement, shopping centers, financial services and department stores. Cencosud headquarters are in Santiago, Chile, and the Company

Investor Relations
Phone: +56-2-959-0545
[ Mariasoledad.fernandez@cencosud.cl ]


CONSOLIDATED INCOME DATA
(In millions of Chilean pesos as of September 30th, 2012)


	Third Quarter		Nine months ended September 30
	2012	2011	2012	2011
	MM CLP	MM CLP	MM CLP	MM CLP
Net revenues	2,201,736	1,863,268	6,568,429	5,409,116
Cost of sales	- 1,576,345	- 1,335,448	- 4,715,820	- 3,855,615
Gross profit	625,392	527,820	1,852,610	1,553,501
Selling and administrative expenses	- 510,103	- 413,595	- 1,520,681	- 1,194,912
Other income by function	20,005	10,284	61,927	34,323
Other gain (Losses)	204	- 3,000	- 8,307	- 5,657
Operating income	135,498	121,510	385,548	387,255
Participation in profit or loss of equity method associates	1,247	910	3,487	2,600
Financial Income	2,097	2,460	6,785	8,373
Finance Costs [for Non-Financial Activities]	- 48,303	- 34,301	- 146,317	- 103,585
Income (loss) from foreign exchange variations	6,487	- 8,116	3,880	- 10,074
Result of indexation units	- 2,652	- 4,945	- 16,681	- 21,722
Non-operating income (loss)	- 41,124	- 43,993	- 148,845	- 124,407

Income before income taxes	94,373	77,517	236,703	262,848
Income taxes	- 27,461	- 21,755	- 76,213	- 73,853

Profit (Loss)	66,913	55,762	160,490	188,994

Profit (Loss) Attributable to Equity Holders of Parent	66,500	53,512	157,082	180,837
Profit (Loss) Attributable to Minority Interest	413	2,250	3,408	8,158
Net income per share	28.6	23.6	67.5	79.9
Number of shares outstanding (in millions)	2,507	2,264	2,507	2,264

CENCOSUD S.A.
CONSOLIDATED BALANCE SHEETS
(In millions of Chilean pesos as of September 30th, 2012 )


	Sep-12	Dec 2011
	MM Ch$	MM Ch$
Current Assets:
Cash and Cash Equivalents	100.932	145.315
Other Financial Assets, Current	53.749	221.929
Other Non-Financial Assets, Current	11.925	12.259
Trade and Other Receivables, Net, Current	918.305	930.381
Accounts receivable from related parties, Current	881	82
Inventories	800.795	769.472
Tax Assets, Current	18.757	6.962
Total Current Assets	1,905,344	2,086,401
Non-Current Assets:
Other Financial Assets, Non-Current	34.215	46.98
Other Non-Financial Assets, Non-Current	38.727	35.052
Trade and Other Receivables, Net, Non-Current	143.278	194.444
Equity Method Accounted Investments in Associates	40.503	38.83
Intangible Assets, Net	535.788	526.688
Capital gain	1,062,691	1,001,779
Property, Plant and Equipment, Net	2,334,211	2,260,289
Investment Property	1,412,116	1,310,143
Current tax assets, Non-Current	9.391
Deferred Tax Assets	201.266	154.163
Total Non-Current Assets	5,812,186	5,568,367

TOTAL ASSETS	7,717,530	7,654,769
Current Liabilities:
Other Financial Liabilities, Current	473.649	578.823
Trade and Other Payables, Current	1,426,418	1,550,821
Notes and accounts payable to related companies, Current	1.002	1.448
Provisions, Current	38.91	17.475
Current Tax Payables	27.447	40.49
Current provisions for employee benefits	81.616	68.65
Other Non-Financial Liabilities, Current	57.668	71.05
Total Current Liabilities	2,106,710	2,328,756
Non-Current Liabilities:
Other Financial Liabilities, Non-Current	1,804,717	1,872,951
Trade and Other Payables, Non-Current	8.684	11.151
Provisions, Non-Current	79.642	83.468
Deferred Tax Liabilities	348.412	313.047
Other Non-Financial Liabilities, Non current	70.89	82.722
Total Non-Current Liabilities	2,312,346	2,363,339
Equity:
Issued Capital	1,791,804	927.804
Issued Premium	237.348	477.341
Other Reserves	-522.349	-202.722
Retained Earnings (Accumulated Losses)	1,790,334	1,672,500
Equity Attributable to Equity Holders of Parent	3,297,137	2,874,923
Minority Interest	1.337	87.75
Total Equity	3,298,474	2,962,673

TOTAL EQUITY AND LIABILITIES	7,717,530	7,654,769

SOURCE Cencosud S.A.

RELATED LINKS
[ http://www.cencosud.cl/inversionistas.htm ]

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Cencosud Reports Third Quarter 2012 Results