Q2 2026 InRetail Peru Corp Earnings Call Transcript
Key Points
- Consolidated revenue grew 11.5% year-over-year to PEN6.1 billion, with adjusted EBITDA up 14% and margin expansion to 13.3%.
- Food Retail delivered double-digit revenue growth of 15.3%, driven by strong same-store sales growth of 11.6%, particularly in hard discount and cash-and-carry formats.
- Pharma segment's core pharmacy unit grew 9.8% with same-store sales up 7.7%, while adjusted EBITDA for the segment increased 12.1% with margin expansion to 18%.
- Shopping malls posted outstanding results with adjusted EBITDA growing 37.5%, supported by high occupancy (95.5%) and strong tenant sales growth.
- The company updated its full-year 2026 guidance to approximately 10% revenue growth and low double-digit adjusted EBITDA growth, reflecting confidence in continued momentum.
- Digital sales in Food Retail grew over 36% year-over-year, with the cash-and-carry e-commerce platform nearly doubling sales, enhancing omnichannel capabilities.
- Net leverage improved to 1.8x, down 0.3x year-over-year, with a comfortable debt maturity profile and continued deleveraging expected.
- The company initiated a share buyback program and completed the acquisition of the remaining 50% stake in InFinance XP, demonstrating disciplined capital allocation.
- InRetail was included in the Dow Jones Best-in-Class Index MILA Pacific Alliance for the fifth consecutive year, ranking fifth globally in its industry.
- Food Retail adjusted EBITDA margin narrowed to 8.4% from 8.9% due to incremental operating expenses from new store openings and higher logistics costs, with pressure expected to persist through the second half.
- Pharma segment revenue growth was limited to 4.8% due to the planned exit from non-core distribution channels, with B2B revenue declines expected to continue throughout the year.
- Shopping malls' adjusted EBITDA growth was partly supported by a low comparison base related to the Real Plaza Trujillo incident last year, and these favorable effects are expected to dissipate.
- The potential increase in the minimum wage could result in a full-year impact of approximately PEN60 million, with the majority (PEN40 million) affecting the Food Retail segment.
- The potential El Nino phenomenon later this year poses a risk to the broader economy and could create headwinds for consumption and operations in 2027.
- Softer demand trends in apparel and fast fashion categories were observed in shopping malls due to a milder-than-expected winter season.
- Consolidated net income growth was partially offset by lower net FX gains, a mark-to-market loss from investment property valuation, and a higher effective tax expense.
- CapEx for the first half of 2026 was lower year-over-year due to a high comparison base, which may indicate a slowdown in investment pace.
Good morning, and welcome to InRetail Peru's second-quarter 2026 conference call. (Operator Instructions) Before we begin, I would like to remind you that today's call is for investors and analysts only. Therefore, questions from media will not be taken. Joining us today from InRetail 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 on Friday, August 14.
If you have not yet received a copy of the earnings report, please visit www.inretail.pe on the investor section where there is also a webcast presentation to accompany the discussion during this call. If you need any assistance, please contact the investor relations team of InRetail Peru. Please be advised that forward-looking statements may be made during this conference call and they do not account for economic circumstances, industry conditions, the company's performance or financial results.
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