The Chilean retail chain Falabella recorded ‘red numbers’ of 9,794 million Chilean pesos (10.1 million euros) between January and September of this year compared to the net profit of 161,769 million Chilean pesos (167 million euros ) achieved in the first nine months of the previous year.
However, regarding the third quarter, the company reduced its losses by 72.6% year-on-year, leaving it with ‘red numbers’ of 4,642 million Chilean pesos (about 4.8 million euros).
The lower profits in the first three quarters of the year are due, as explained by the company, to the lower contribution of the home improvement and store divisions in Chile and the banking business in that country and in Colombia.
During this period, billing contracted 9.5% compared to the same nine months of the previous year, reaching a turnover of 8.1 billion Chilean pesos (8,388 million euros).
By Falabella’s business segments, non-banking turnover has fallen by 12.5% in the first nine months, while banking income grew by 7.5%. Likewise, by markets, the turnover decreased in all the countries where it operates.
Meanwhile, the operating result has fallen 71.5% year-on-year, to 110,487 million Chilean pesos (more than 114 million euros). Meanwhile, the gross operating result (Ebitda) decreased by 37.3%, remaining at 448,722 million Chilean pesos (463.4 million euros).
The general manager of Falabella, Gaston Bottazzini, has highlighted that, despite the “challenging” environment, the company has managed to improve its Ebitda and its margins during the period, while strengthening its financial position with a “correct” implementation of its economic efficiency plan.