Adjusted EBITDA rises 44%, excluding one-off expenses; Adjusted EBITDA margin of 6.4%; Efficiency measures drive 208 basis point improvements in gross margin; Board mandates banks for Shopping Center IPO

SANTIAGO, CHILE / ACCESSWIRE / November 27, 2015 / Cencosud S.A. (BCS: CENCOSUD; NYSE: CNCO), a leading South American retailer with operations in Chile, Argentina, Brazil, Peru and Colombia, today announced its consolidated financial results for the third quarter of 2015. All figures are in Chilean pesos (CLP), except where indicated otherwise, and in accordance with IFRS. Variations refer to the comparison between 3Q15 and 3Q14.

- Revenues rose a modest 2% to 2.6 trillion CLP, impacted by the depreciation of the Colombian peso and the Brazilian real. There were positive SSS in most business units, including the Supermarket unit, which accounted for 73.6% of consolidated revenue.
- Gross margin increased 208 basis points year-on-year despite one-off charges related to obsolete inventory, as the Company realigned its commercial strategy to emphasize profitability. Eliminating this non-recurring non-cash CLP 8.0 billion expense, gross margin expanded 238 basis points.
- In 3Q15, operating income was impacted by two non-recurring items: severance payments and inventory obsolescence provisions. Together, these one-off expenses totaled CLP 34.5 billion.
- Adjusted EBITDA excluding non-recurring items increased 44% and adjusted EBITDA margin improved 189 basis points, to 6.4%.
- Despite the improvement in business performance, Cencosud posted a loss of CLP 29.9 billion in 3Q15 due to the increase in the interest rate in Chile resulting in an increased expense for the valuation of financial derivatives (-CLP 22,936 MM) and the devaluation of the Chilean peso against the US dollar on the unhedged portion of the debt (-CLP 65,044 MM).

Please visit http://www.cencosud.com/en/inversionistas/ to obtain the full third quarter earnings release, including financial results and tables.

Management Comment

Results for the third quarter shows the progress we have made in our efficiency programs, leveraging our unique scale, expertise and market positioning in South American retail. We have successfully reduced our cost structure right throughout the business in the last 12 months, adjusting commercial strategy and working to lower SG&A expenses. As a result, we delivered 44% growth in Adjusted EBITDA from 3Q14, excluding the impact of one-off expenses. In addition, we are pleased to announce that the Board of Directors has taken the next step in the IPO of our Shopping Center division, mandating banks for this landmark transaction.

We remain confident about the outlook for 2016, despite some signs of an economic slowdown in certain markets. Our unique market positioning in food retail, home improvement and department stores means we should be able to maintain positive growth in revenue, while our efficiency programs mean we will enter the New Year with a leaner cost structure, and with scope for further improvement. We are therefore confident in our ability to deliver positive financial comparisons and generate further value for shareholders, while maintaining our market-leading standard of service to South American consumers.

Conference Call

The Company will host a conference call to discuss these results on Monday, November 30th, 2015 at 13 PM Chilean time/ 11:00 am EST. The conference call-in details are provided below. To participate on the day of the call, dial 1- 877-407-8031 or 1- 201-689-8031 approximately ten minutes before the call and tell the operator you wish to join the Cencosud Conference Call. A webcast of the conference call will be available online at www.cencosud.com/en/inversionistas.

About Cencosud S.A.

Cencosud is a leading multi-brand retailer in South America, headquartered in Chile and with operations in Chile, Brazil, Argentina, Peru and Colombia. The company operates in supermarkets, home improvement stores, shopping centers and department stores, always aiming to deliver the right product at the right price to Latin America's growing middle class. In 2012, the company listed American Depositary Receipts on the New York Stock Exchange.

Forward-Looking Statements:

In addition to historical information, this release contains "forward-looking statements" that reflect management's expectations for the future. The forward-looking statements included herein represent Cencosud's views as of the date of this release. A variety of important factors could cause results to differ materially from such statements. These factors are laid out in Cencosud's filings with the SVS in Chile and the SEC in the United States. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.

Corporate Communications

Andrea Brajovic
Phone +562 2959 0024
andrea.brajovic@cencosud.cl

Investor Relations

Maria Soledad Fernandez
Phone +562 2959 0545
Mariasoledad.fernandez@cencosud.cl

Natalia Nacif
Phone +562 2959 0368
natalia.nacif@cencosud.cl

SOURCE: Cencosud S.A.