Retailer Cencosud posts profit down 42% on Argentine inflation, slow consumption
(Reuters) — Chile's Cencosud, one of Latin America's largest retailers, on Tuesday reported a 42% fall in fourth-quarter net profit, landing at 83.3 billion pesos ($94 million), while revenues shrunk 16% to 3.30 trillion pesos.
Quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) shrunk 17% while the annual figure fell 7% compared to a year earlier.
Cencosud cited effects from hyperinflation in Argentina as well as growing labor costs, slower consumption and effects linked to the El Nino weather pattern, which warms the Pacific.
The results come days after new Chief Executive Rodrigo Larrain assumed office, some six months after former CEO Matias Videla stepped down shortly after being fined for insider trading.
The board had initially nominated Heike Paulmann, board chair and daughter of the company's founder, as interim CEO but regulators ruled she could not serve both roles and another was appointed. Paulmann was later replaced as board chair.
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