South American home improvement retailer Cencosud has released figures for its business for the first quarter of 2022, outlining a very successful performance. Home improvement retail sales increased by a total of 20.7 per cent to 432.161 bn Chilean pesos (CLP) (approximately EUR 470 mio). In local currency, growth was 24.2 per cent. Compared to the first quarter of 2019, revenues increased by 51.7 per cent, or 130.4 per cent in local currency.
According to a company report, the adjusted EBITDA in Home Improvement was 6.2 per cent and 10.3 per cent in local currency year-on-year in the first quarter of 2022 and 116.9 per cent and 257.2 per cent in local currency year-on-year in 2019. E-commerce in Home Improvement increased slightly by 0.7 per cent to 27.528 bn Chilean pesos (CLP) (approximately EUR 30 mio) in the first quarter of 2022.
At the same time, the number of stores increased by 13 between Q1 2022 and Q1 2021 to 111 in the three countries where the company operates home improvement stores: Chile (+2), Argentina (+5) and Colombia (+6). Total sales area increased by 1.6 per cent to 821 902 sqm.
In Chile, Home Improvement grew 7.1 per cent year-on-year in Q1 2022 to CLP 228.67 bn (approximately EUR 249.25 mio) and 6.6 per cent like-for-like. The company report states: "This growth is explained by the high level of demand that continued in the first months of the year, together with record sales in March at the wholesale level. The increase was partially offset by a reduction in online sales that have slowed due to a high comparison base."
In Argentina, first quarter sales increased by 41.1 per cent to CLP 178.632 bn (approximately EUR 190 mio). Like-for-like growth was 47.7 per cent, compared to 47.1 per cent in the first quarter of 2019. In local currency, growth between the first quarter of 2019 and 2022 was an incredible 231.7 per cent - driven by high inflation in Argentina.
In Colombia, sales rose to CLP 24.859 bn (approximately EUR 27 mio), an increase of 38.1 per cent as well as 33.5 per cent in local currency. Compared to 2019, sales increased by 42.5 per cent.