Friday, September 29, 2023

A year after opening in the U.S., Cencosud plans to open a store every 33 days

Cencosud, the company retail trade With offices in Chile, Argentina, Brazil, Colombia, the United States and Peru, the company is celebrating its first year of operations in the United States. During this period, the results of the new subsidiary The Fresh Market exceeded the expectations of the management, which is controlled by the Paulmann family.

The Fresh Market – acquired by Cencosud for $676 million in 2022 – operates in 22 states, including Florida, New York, Georgia, Virginia and North Carolina, and has 160 stores.

Although some investors initially viewed this acquisition as aggressive, the positive results have boosted the value of Cencosud shares on the Santiago Stock Exchange, up 33% so far this year to $1,746.

Matías Videla, Corporate General Manager of Cencosud, commented on the company’s results up to June, emphasizing that in the first 12 months under Cencosud’s leadership, The Fresh Market created financial and commercial synergies that had a total impact on the states 75, 8 million. Additionally, The Fresh Market contributed adjusted Ebitda of $210 million and an Ebitda margin of 10.4% to the company’s consolidated results, exceeding estimates.

The company recorded Ebitda growth of 17.2% compared to the second quarter of 2022 and achieved an adjusted Ebitda of 10.5%. This growth was driven by activity in Chile, Argentina and Peru, excluding the impact of hyperinflation in Argentina.

Cencosud has ambitious expansion plans in the United States. The company plans to increase The Fresh Market store count by 14% over the next two years and add 22 additional locations over the next 24 months, which is equivalent to opening a new store approximately every 33 days.

The company is also considering acquiring another chain in the United States to accelerate its growth in this market, although no decision has been made in this regard. The strong consumer economy in the United States has motivated this search for opportunity.

Nation World News Desk
Nation World News Desk
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