CHILE – On January 30th Cencosud announced its overall financial guidelines (“Guidance”) for 2015 and on this occasion also made the announcement of a general investment plan for the next four years that would be in a range between USD 2,400 and USD 3,000 million.

The Chilean retail leader explained that the program for the period 2015-2018 is designed with the purpose of maintaining an appropriate balance between the overall financial position of the company and the necessary organic expansion and consolidation of various business units.

The 2015-2018 investment plan will allocate 59% of resources to its organic growth, 21% for stores remodeling and 20% for technological and logistical improvements.

Regarding this year’s performance, Cencosud expects approximate annual revenues between USD 19.3 and USD 21.1 billion with an EBITDA margin of between 7% and 7.4% and plans investments worth USD 545 million. Of which USD 230 million will go to the opening of new stores and investments in shopping centers, USD 100 million for IT systems, USD 100 million for remodeling and another USD 100 million for store’s maintenance. Cencosud is also considering a USD 15 million investment for the launch of a hotel its Costanera Center mall and road mitigation works for the same complex.

The General Manager of Cencosud, Jaime Soler stated “this plan is a reflection of our commitment to protect the company’s main financial indicators, easing our debt levels, but at the same time maintaining an attractive level of investment.”

 

Cencosud Capex per Year 2015-2018

 

Cencosud Capex by Category 2015-2018