Cencosud reports 12.9% increase in revenues during the second quarter of the year

• The Company's Adjusted EBITDA grew 17.2% compared to the second quarter of 2022, reaching a double-digit Adjusted EBITDA margin for the 11^th consecutive quarter.
• Meanwhile, Net Income in the second quarter of the year increased 163% YoY reaching US$179 million, explained by the increase in Adjusted EBITDA and the improvement in Non-Operating Result.
• The Fresh Market completed one year as part of the Cencosud's group, a period marked by important financial and commercial synergies, achieving a total impact in Financial Statements of US$ 75.8 million and contributing with an Adjusted EBITDA of US$ 210 million.

Santiago, August 17^th, 2023.- Cencosud reported a solid performance in its financial results during the second quarter of the year. Revenues increased 12.9%, reaching US$4,518 million, the ninth consecutive quarter of double-digit sales growth. This increase is mainly due to the successful consolidation of The Fresh Market in the United States and GIGA Atacado in Brazil, and to the increase in market share of its supermarkets in Chile and Brazil, compared to the same period of 2022.

The Company's Adjusted EBITDA grew 17.2% compared to the second quarter of 2022, reaching a double-digit Adjusted EBITDA margin for the 11^th consecutive quarter, reaching 10.5%. This increase is explained by an EBITDA margin expansion in Chile, Argentina, and Peru, an improvement in the profitability of the Shopping Centers division, and the incorporation of The Fresh Market and GIGA Atacado. Meanwhile, Net Income increased 163% YoY to US$ 179 million, explained by the increase in Adjusted EBITDA and the improvement in Non-Operating Result.

"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. 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." 

said Matías Videla, CEO of Cencosud.

Cencosud celebrated the first anniversary of The Fresh Market under its management, a first-year marked by important financial and commercial synergies, achieving a total impact in Financial Statements of US$ 75.8 million.

"In these 12 months, The Fresh Market has contributed with an Adjusted EBITDA of US$ 210 million and an Adjusted EBITDA margin of 10.4% 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 the Company's CEO.

In Brazil, Supermarket revenues increased 13.6% in real terms and 7.1% in Chilean pesos. This growth is mainly explained by the acquisition of GIGA Atacado and the increase in sales of the Cash&Carry format. In Chilean Supermarkets, meanwhile, revenues increased 6.6% compared to the second quarter of 2022, driven by same store sales of 5.5%, an 8.6% growth in online sales, and the opening of 4 new Spid stores (Convenience format).

As part of Cencosud's progress at the consolidated level in the second quarter, there was a 13.8% increase in the number of sales tickets compared to the same period last year, reaching a total of 162 million. This is in addition to six store openings and the remodeling of 41 stores at the regional level.

In terms of its commercial strategy, the Company has continued to strengthen its regional Private Brands proposal, making progress in expanding the supply of basic market basket products and providing a greater variety of differentiating options. In terms of omnichannel, Cencosud achieved an online penetration rate of 10.4% of total sales in the second quarter of the year. At the same time, there was a 14% growth in the number of Prime program subscribers in Chile, Peru, and Colombia between December 2022 and June 2023.

Finally, among the quarter's milestones was CencoPay, a new digital payment method through which the company seeks to continue strengthening its digital ecosystem, which exceeded 225,000 downloads since its launch. In addition, the company announced its investment and entry into the ownership of the Brazilian startup Mimo Live Sales, and the launch of Cencosud Media in Peru, in addition to its presence in Chile, Colombia, and Argentina.