Cencosud S.A., Income one of the largest and most diversified retail companies in Latin America, announced its financial results for the first quarter of 2025, highlighting a solid performance marked by increased revenues, a return to profitability, and significant progress across its digital and strategic platforms. The company reported consolidated revenues of CLP 4,031,583 million for the quarter, representing a 2.4% year-over-year increase. This positive outcome was achieved despite the challenging comparison base due to the leap year in 2024 and the inclusion of Easter holidays in March of that year, which typically drives seasonal retail activity.
Return to Profitability and Revenue Growth
Net income for the quarter came in at CLP 126,442 million, a strong turnaround from the net loss of CLP 601 million reported in Income the same quarter of the previous year. This marks a significant milestone in the company’s financial recovery, reflecting enhanced operational efficiency, cost control, and strategic investments in digital and high-growth segments.
Revenue growth was broad-based, with notable contributions from operations in Chile, the United States, Argentina, and Peru. These markets demonstrated robust performance across both traditional retail formats and e-commerce platforms. Digital transformation continued to be a cornerstone of Cencosud’s growth strategy, with the digital channel exceeding 7 million transactions during the quarter. This surge in online engagement translated to an 8.8% increase in digital sales compared to the first quarter of 2024.
The U.S. and Peruvian markets stood out as the most dynamic contributors to this digital growth, registering impressive year-over-year increases of 30% and 44%, respectively. Chile also reported healthy performance in this segment, with e-commerce sales rising 7.5% over the same period.
Improved Profitability and Operating Margins
Cencosud continued to focus on operational excellence and margin enhancement across its multiple business units. Adjusted EBITDA reached CLP 376,117 million, marking a 10.4% increase compared to the previous year’s first quarter. This improvement was largely driven by greater efficiency and cost discipline, especially in Chile, Peru, and Colombia. Income The EBITDA margin expanded by 68 basis points to reach 9.3%, underlining the company’s successful efforts to improve profitability in a competitive retail environment.
Commenting on the results, Rodrigo Larraín, Chief Executive Officer of Cencosud, stated:
“We have reinforced a disciplined capital allocation strategy across all countries and business lines. This approach allows us to pursue profitable growth, focused on innovation, digitalization, and the adoption of technological tools that enhance our customer value proposition and boost operational productivity.”
Retail Ecosystem and Private Label Expansion
The Retail Ecosystem, one of Cencosud’s key strategic pillars, played a central role in driving innovation, technological advancement, and the creation of new revenue streams during the quarter. The ecosystem, which includes Retail Media, Private Label, and E-commerce initiatives, delivered nearly double-digit growth and made a meaningful contribution to the company’s profitability.
A standout highlight was the continued expansion of Private Label products. Penetration increased to 17.3% of total sales, up 69 basis points compared to the first quarter of 2024. Growth in this segment was driven by the strong performance of the Food category, particularly through the Cuisine&Co brand. Additionally, the company introduced new Non-Food Private Label brands to diversify its offering and capture consumer interest. These included Hydrum, a line of hydration products such as reusable bottles and mugs, and Cross Check, a new luggage and travel accessories brand designed to appeal to modern, on-the-go consumers.
Shopping Center Segment Strengthens
The Shopping Center business continued its positive momentum, particularly in Chile, where revenues increased by 10.5%. IncomeThis segment maintained exceptional operating efficiency, with an EBITDA margin of 81.2%, one of the highest in the industry. Occupancy rates remained elevated at 98.5%, underscoring the desirability and strategic location of Cencosud’s retail properties. The results demonstrate the ongoing recovery and resilience of the commercial real estate market in the region.
Advancing Strategic Investments and Innovation
Cencosud’s investment plan for 2025, totaling USD 610 million, remains on track. The funds are being allocated to strategic store openings, real estate developments, and technological upgrades aimed at supporting the company’s long-term growth and innovation roadmap. The investment strategy is tightly aligned with Cencosud’s vision of transforming into a more digitally integrated and customer-centric retail organization.
Key Strategic Milestones in Q1 2025
In addition to strong financial performance, the first quarter was marked by a series of important strategic developments:
- New Corporate Purpose: Cencosud unveiled a refreshed global purpose—“Serving extraordinarily at every moment”—which reinforces the company’s commitment to elevating the customer experience and solidifying its position as a leading multi-format retailer in Latin America.
- Integration of Strategic Supermarket Assets in Argentina: In February, Cencosud completed the integration of Makro and Basualdo operations in Argentina, enabling the realization of operational synergies and enhancing the supermarket footprint in the country.
- U.S. Expansion of The Fresh Market: The Fresh Market, Cencosud’s premium grocery chain in the United States, expanded its presence to 173 stores with six new openings between January and April. The chain’s customer service excellence was recognized with a five-star rating in USA Today’s 2025 America’s Best Customer Service ranking, reinforcing its reputation as one of the top performers in the U.S. retail sector.
- Circular Fashion Leadership in Chile: Cencosud took majority control of Vopero, a digital fashion resale platform. The acquisition positions its Paris brand as a leader in circular fashion in Chile, enabling customers to access exclusive, sustainable, and fashion-forward product offerings.
- Recognition in Merco Rankings: In Chile, Cencosud improved its position in the Merco ESG Responsibility ranking, climbing from 43rd to 25th place. It also rose from 21st to 14th in the Merco Companies ranking. In Peru, the company advanced three positions in the ESG Responsibility category, demonstrating continued progress in sustainability and corporate reputation.
