Cencosud has reported improvement in its second quarter results, despite challenges around the economy and decelerating consumption. Revenues in local currency were up across all markets, except Brazil, although currency devaluations affected results in Chilean pesos.
Encouraging signs in Brazil despite difficulties
Cencosud's supermarket business posted revenue growth in local currencies in all countries except Brazil, and increases in same store sales.
There were some encouraging signs in Brazil despite a 0.7% fall in same store sales; the Bretas business is showing improvements after adjustments in commercial strategy, changes in the local team and the closure of six stores, while GBarbosa had positive same store sales in food following a greater focus on the area.
Confident about remainder of 2016
Cencosud says the core business in Chile remains solid. It is pleased with how it has navigated challenging conditions to date and is confident about the strategy to drive profits for the rest of the year.