Falabella, a Chilean retailer, reported a net profit for the first quarter of 2023, marking a significant turnaround from a loss in the same period last year. The company’s profitability was driven by its operations in Peru, where it recorded a net profit of 58.50 billion pesos for the January-to-March period. In addition to Peru, Falabella’s units in Chile, Colombia, and Brazil also contributed to trimming losses from the previous year.
Revenues for Falabella rose by 4% to 2.86 trillion pesos during the quarter. This growth was largely due to the foreign-exchange effect of the weaker Chilean peso compared to local currencies. CEO Alejandro Gonzalez noted increased visits to shopping centers and a reduction in inventories by 11% during the quarter. The company’s loan portfolio grew by 1% year-over-year, but delinquent payments also saw a slight increase to 4.4%.
Falabella’s core earnings more than doubled to 296.95 billion pesos in the first quarter, driven by improved performance across its various business segments. The company operates supermarkets, department stores, and home improvement stores, as well as delivery and financial services in several countries across Latin America.
To further boost profitability, Falabella has announced plans to invest $508 million by 2024, with a focus on store openings, remodeling, e-commerce, digital banking