Q4 2025 Falabella SA Earnings Call Transcript
Key Points
- Falabella SA (XSGO:FALABELLA) reported a 13% revenue growth and a 12.7% EBITDA margin, driven by better online execution and operational efficiencies.
- The company's e-commerce platform showed strong performance, with GMB growing 18% year over year and online penetration reaching 40%.
- Falabella SA's digital bank achieved significant growth, with total loans reaching 8.4 billion, an 18% increase year over year.
- The company successfully expanded its private label sales, achieving a record share in 2025, which reinforced differentiation through exclusivity and value.
- Falabella SA's financial position strengthened, with net financial debt decreasing to 1.7 billion and a net debt to EBITDA ratio for non-banking businesses improving to 1.3 times.
- Falabella SA faced challenges in the construction sector, impacting revenue growth despite a 2.5% increase driven by initiatives in Chile and Peru.
- The company experienced margin pressure in Banco Falabella due to higher cost of risk in Chile and increased operating expenses across all three countries.
- Interest expenses increased by 25% in the quarter, despite a reduction in net debt, due to one-off items and prepayment expenditures.
- The company is navigating a challenging environment with lower participation of foreign customers in Chile, impacting sales.
- Falabella SA's SG&A expenses in the banking sector in Peru increased due to investments in digital solutions and loyalty programs, impacting short-term profitability.
Offering, improved store layouts and price perception.
Meanwhile, in Peru, we continued expanding the PreCUO discount format, further supported by higher liquidity levels as a consequence of the pension fund withdrawals.
In both countries, we initiated the deployment of our renewed private label assortment with each product carefully tested and curated to deliver the best quality at its intended price point and strategically placed to elevate the in-store and online experience.
At the ecosystem level, our online channel remained a key growth driver, with ecosystem GMB increasing 16% year over year on a comparable basis, highlighting the sales of our sellers growing 38% year over year.
This performance was supported by leading brands, stronger participation of sellers, and continued improvements in our logistics and delivery capabilities, allowing us to capture demand during periods of high commercial intensity.
Let me now turn it over to Alejandro Arce, who will share
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