Argentina collapses the budget of Chilean Cencosud: in the quarter he lost 22 million dollars

One sign that usually marks the depth of crises in Argentina is when multinationals with operations in dozens of markets are forced to do clarification on local branchesto remove them from your balance sheet or directly record losses of value in your family assets.

Companies are closing half-yearly financial statements these days. and the Chilean Cecosudowner of supermarket chains Jumbo, Disk Y seeof the building materials premises Easy Y Blaisten and Unicenter mall, among other malls, was one of those that had to make it clear that this was Argentina led her to lose $ 21.9 million in the second quarter of the year.

The company reported that the red originated in impact of inflation debt level and forced it to devalue a loss to the value of its Argentine assets.

Yes are excluded the effects of rising prices in the country, the loss of the group becomes a profit of 65 million dollars, down 70% from last year.

Its total revenue increased 22% in the second quarter from a year ago to $ 3.812 million, excluding Argentina. If domestic operations are included, sales reached $ 3.7 billion. Argentina accounts for 20% of the group’s income.

The company’s adjusted profit before tax, interest, depreciation and amortization (EBITDA) increased 3.4% to $ 393 million, excluding Argentina.

Despite inflation, in the country Cencosud has increased its market share in supermarketsto 16.1%, (despite the closure of 6 stores in VEA), and improved its margins.

The group also highlighted that the activity of the shopping centers (owners, among others, of the Portale Palermo and the Portale Rosario) has been normalized in terms of sales and occupation and also better profitability of DIY companies by optimizing the 3,500 sqm formats. n

In his quarterly report, Cecosud also highlighted this in Argentina increased the share of own brands in total sales, especially in the “non food” segment.

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