Q4 2024 InRetail Peru Corp Earnings Call Transcript
Key Points
- InRetail Peru Corp (LIM:INRETC1) reported a solid growth in revenues of 7.5% for the fourth quarter of 2024, driven by double-digit growth in the food segment.
- The company achieved a strong double-digit growth of 13% in adjusted EBITDA compared to Q4 2023, attributed to revenue growth, improved gross margin, and increased fixed cost dilution.
- InRetail Peru Corp's food retail segment grew 6.7% in revenues for the full year 2024, with a positive same-store sales growth of 2.5%, continuing to gain market share.
- The pharmacy segment managed to recoup its performance with a growth in revenues and adjusted EBITDA of 0.2% and 8% respectively for the year.
- The shopping mall segment registered a 6.5% growth in revenues and a 9.2% growth in adjusted EBITDA, reflecting strong tenant sales and improved occupancy levels.
- The tragic event at Real Plaza Tolo, where the ceiling collapsed, resulted in six fatalities and multiple injuries, impacting the company's operations and reputation.
- Net income decreased by 8.8% in the fourth quarter due to non-cash and non-operational effects, including a mark-to-market effect and foreign exchange impacts.
- The food retail segment's adjusted EBITDA was affected by incremental expenses from new store openings and the increased representation of emerging formats in the revenue mix.
- Nine malls experienced temporary closures, representing approximately 20% of rental income, due to the aftermath of the tragic event.
- The pharmacy distribution unit posted a decline in revenues due to a change in commercial strategy, prioritizing cash generation over top-line growth, impacting gross margins.
Good morning and welcome to InRetail Peru's 4th quarter 2024 conference call. (Operator Instructions)
At this time, all participants are in a listen-only mode, and please note that this call is being recorded.
After the presentation, we will open the floor for questions.
At that time, instructions will be given as to the procedure to follow if you'd like to ask a question.
Also, you can submit online questions at any time today using the chat function on the left side of the webcast platform, and it will be answered after the presentation during the Q&A session.
Simply type your question in the box and click send.
Before we begin, I would like to remind you that today's call is for investors and analysts only. Therefore, questions from the media will not be taken.
Joining us today from Retail Peru are Mr. Juan Carlos Vallejo, Chief Executive Officer, Mr. Marcelo Ramos, Chief Financial Officer, and Mrs. Andrea Fabbri, investor relations officer.
They will be discussing the quarterly report distributed by the company yesterday
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