Falabella reports profitable first quarter due to successful operations in Peru.

Falabella Reverses Loss in Q1 with Strong Performance in Peru: Report

Chilean retailer Falabella reported a net profit for the first quarter, reversing a loss from the previous year, with strong performance in Peru driving the positive results. The company’s net profit for January to March reached 58.50 billion pesos, with operating profits from its units in Peru, Chile, Colombia, and Brazil contributing to the improvement.

Revenues for Falabella were up 4% to 2.86 trillion pesos, largely due to the impact of foreign exchange rates. The company saw an increase in shopping center visits and reduced its inventories by 11% in the quarter, according to CEO Alejandro Gonzalez. The loan portfolio grew by 1% year-over-year, but delinquent payments also rose slightly to 4.4%.

Core earnings, as measured by EBITDA, more than doubled to 296.95 billion pesos for the first quarter. Falabella operates a variety of retail stores and financial services across Latin America, with plans to invest $508 million by 2024. The company is focusing on store openings, remodeling, e-commerce, digital banking, and logistics to enhance profitability.

Falabella has been working to reduce its leverage

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