SANTIAGO, CHILE - Cencosud, the parent company of The Fresh Market, has harnessed its expansive footprint to deliver impressive growth during the second quarter of 2023. The retail titan noted its ninth consecutive quarter of double-digit sales growth, with revenues increasing by 12.9 percent to $451.8 million. This increase was driven by the successful consolidation of The Fresh Market in the United States and GIGA Atacado in Brazil, as well as the increase in the grocer's market share of its supermarkets in Chile and Brazil.
"During the second quarter of 2023, and despite a challenging macroeconomic environment in Latin America and the United States, Cencosud continued to generate positive results by achieving revenue and EBITDA margin growth," said Matías Videla, Chief Executive Officer of Cencosud. "This reflects the sustained resilience of the company's core businesses and the solid performance in terms of profitability in countries such as Chile, Argentina, and Peru, which again achieved double-digit EBITDA margins."
Cencosud also celebrated the first anniversary of The Fresh Market under its management in what the company reported as a first year marked by important financial and commercial synergies.
"In these 12 months, The Fresh Market has contributed with an Adjusted EBITDA of $210 million USD and an Adjusted EBITDA margin of 10.4 percent to the company's consolidated result, exceeding estimates. In addition, during this quarter we opened the first store post-acquisition and plan to add 22 additional stores in the next 24 months," added Videla.
Other key highlights from the report include:
- Adjusted EBITDA grew 17.2 percent compared to the second quarter of 2022, reaching a double-digit Adjusted EBITDA margin for the 11th consecutive quarter
- Net income in the second quarter of the year increased 163 percent YoY reaching $179 million, explained by the increase in Adjusted EBITDA and the improvement in Non-Operating Result
- The Fresh Market completed one year as part of the Cencosud's group, achieving a total impact in Financial Statements of $75.8 million and contributing with an Adjusted EBITDA of $210 million
For more details regarding Cencosud's second-quarter performance, click here. And stay here on the pages of ANUK for more retail updates.
