Cencosud's Adjusted EBITDA Margin reached 10.5% during the first quarter

• The Company recorded revenues of US$ 4.352 billion, that is, 17.9% higher than the same period of the previous year. Meanwhile, net income amounted to US$192 million during the quarter.
• As part of its strategy to be a leader in E-Grocery sales throughout the region, the Company increased consolidated online sales by 7.4%, reaching a 9.1% penetration and highlighting increases in Supermarkets in Chile, Argentina, and Colombia, compared to the same period of the previous year.

Santiago, May 9, 2023.- The consolidated financial results for the first quarter of 2023 delivered this afternoon by Cencosud show solid results, despite a challenging economic environment and a high comparison base, closing the period with a total of 161 million tickets, which represented an increase of 18.1% compared to the same period of the previous year. Likewise, gross leverage was 3.29x, compared to 3.25x as of December 2022.

The Company recorded consolidated revenue of US$ 4.352 billion, with a growth of 17.9% compared to the first quarter of 2022. Meanwhile, the Company's Adjusted EBITDA reached US$ 458 million, which translates into an Adjusted EBITDA Margin of 10.5% during the period.

According to the Company, the increase in the Adjusted EBITDA Margin -double-digit for the 10th consecutive quarter- demonstrates the resilience of the business even in a macroeconomically challenging environment and with intense promotional activity in retail, maintaining its earnings in market share of Supermarkets in Chile, Argentina, and Brazil, in addition to the consolidation of The Fresh Market and GIGA Atacado.

In detail, the high levels of profitability obtained in these 10 quarters have been possible thanks to solid measures implemented, such as the C-Transforma project, which has managed to automate more than 1 million hours of work. Likewise, changes have been made to improve store efficiency, such as the implementation of self-service checkouts and the "Mi Local" app, which allows for comprehensive management of store operations.

It is important to highlight that, during this quarter, the Company opened 4 new stores and transformed another 9, highlighting 8 changes of flag from Bretas to Bretas Atacarejo –from Supermarkets to Cash&Carry in Brazil- in addition to the remodeling of 10 stores during the period, 7 in Chile and 3 in Argentina, which represents a continuous advance in the store remodeling plan, whose objective is to provide the best shopping experience for customers.

For leadership in E-Grocery throughout the region

The Company highlighted the sustained growth and penetration in E-Commerce with a penetration of 9.1% compared to the same period of the previous year, in a context of growth in sales of physical stores more normalized. Despite this, online penetration in 1Q23 in Supermarkets in Latin America, increases 20 bps y/y and reaches 8.2%.

Likewise, digital capabilities were enhanced both in Brazil and the United States, generating for the first time an alliance with iFood, the Brazilian leader in home food delivery, while in the United States the agreement with Instacart, the North American leader in online food sales, was renewed. In turn, the number of subscribers to Jumbo Prime in Chile grew 43.0% in March 2023 compared to the same period of the previous year, demonstrating the sustained success of the subscription model.

Cencosud also indicated that in 1Q23, sales through the Marketplace increased by 8.7% compared to the previous year, highlighting Easy, our Home Improvement brand, as the top seller on the Paris.cl platform, consolidating its presence and contributing to sales growth.

"We continue to move towards our goal of becoming leaders in E-Grocery in the region, focusing on providing the best mobile experience and continuously improving our last mile. It is for this and other reasons that we continue to drive efficiency measures, investing in the businesses and formats preferred by our customers, and enhancing omnichannel as a complement to our strength and physical presence in the region",

explained Matías Videla, CEO of Cencosud.