CHILE – In spite of the increase in operating income and the decrease of non-operating losses in the period, Cencosud obtained a net income decrease of 38.6%, as it reached CLP 22,059.6 million in 1Q/2015, compared to CLP 35,792.7 million of 1Q/2014.

The Company explained this result a consequence of higher tax expenses in Chile, Brazil and Colombia.

Adjusted EBITDA increased by CLP 1,096 million and posted a slight compression of 37 bps in Adjusted EBITDA margin, mainly as a result of lower performance from Argentina. Excluding Argentina, adjusted EBITDA margin expanded 28 bps YoY.

Consolidated revenues, including discontinued operations, increased 6.3% or CLP 159,230 million, driven by 13 openings and positive SSS across all markets but Brazil, partially offset by the devaluation of the Colombian peso and Brazilian real against the Chilean peso (-14.3% and -19.9% respectively).

Operating income in the first quarter was CLP 117,511 million, an increase of 4.3% compared to the same period last year. According to Cencosud this is mainly explained by the positive results of the supermarkets division (18%increase in operating income), in the shopping centers division and improved performance of the department stores division.