CHILE – Consolidated revenues for the Falabella Group in the first quarter of 2016 reached USD 3,066 million, which represents 4.9% growth compared to the same period last year. 

The increase in revenue is primarily due to SSS growth at Falabella and Sodimac in Chile (13.1% and 5.9%, respectively); 10.7% top line growth at Mall Plaza; revenue growth from banking operations and CMR Chile (17.6% and 13.5%, respectively); and a 5.2% increase in total sales area. This growth, however, was offset, in part, by the depreciation of the currencies in Argentina, Colombia, Brazil and Peru against the Chilean peso.

Gross profit this quarter rose to USD 1,067 million, 5.2% higher YoY, while gross margin increased eight basis points in the same period. This slight gross margin expansion is primarily attributable to Falabella and Sodimac in Chile, Peru and Argentina, as well as margin expansion in Plaza, which offset gross margin deterioration in other business units.

Consolidated EBITDA reached USD 380 million, a 4.3% YoY increase, with an EBITDA margin of 12.4%, in line with the same period last year. Consolidated net income this quarter reached USD 155 million, a -1.7% variation with regards to the same period last year.

In the first quarter, the company inaugurated three stores in Peru: a Hiperbodega Precio Uno, a Tottus supermarket and a new Saga Falabella department store. And in January, S.A.C.I. Falabella announced its USD 4,038 million four-year investment plan for the 2016- 2019 period, of which approximately 44% will be allocated to the opening of 131 new stores and 10 new shopping centers, 30% will be invested in logistics (including new distribution centers) and IT, in order to continue to support omnichannel growth, as well as to achieve higher levels of efficiency and productivity and 26% will be used to increase selling area and remodel existing stores and shopping centers.