Cencosud Announces a Purchase for Up to 27 Million Own-Issue Shares for Its Renewed Retention Plan

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At Extraordinary Shareholders' Meeting held today, Cencosud S.A. approved the purchase for up to 27 million own-issue shares, to be delivered to executives as part of the Company’s Retention Plan, which has been established for a 5-year term.

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Retrieved on: 
Friday, April 28, 2023
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Tags: 
Technology, Wine & Spirits, Supermarket, Electronic Commerce, Specialty, Food, Beverage, Fashion, Supply Chain Management, Retail, Online Retail, Cultural evolution, Private label, Marketplace, Sustainability Accounting Standards Board, Bank statement, Sustainable Development Goal 9, Woman, Innovation, Finance, Organic, Market, CLP, Sustainability, Net income, Sustainable Development Goals, Growth, ESG, International Risk Governance Center, Sustainable development, Service, Management, Cryptocurrency, Grocery store, Cencosud
Geotags: 
NEW YORK, CHILE, SOUTH AMERICA, LATIN AMERICA, NORTH AMERICA, ARGENTINA, UNITED STATES, COLOMBIA, PERU, BRAZIL
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Organisation: 
CENCOSUD, CENCOSUD S.A.
Summary
Key Points: 
  • At Extraordinary Shareholders' Meeting held today, Cencosud S.A. approved the purchase for up to 27 million own-issue shares, to be delivered to executives as part of the Company’s Retention Plan, which has been established for a 5-year term.
  • The Retention Plan complements and expands the existing one with a modern proposal, including recognition for permanence and performance, linked to financial and ESG parameters.
  • Cencosud achieved record figures in Revenues, Adjusted EBITDA and Net Profit, with growth rates of 25.8%, 13.1% and 3.4%, respectively, compared to the previous year.
  • Additionally, it inaugurated its Cencosud Hub in Chile, a workspace specifically designed to promote the cultural evolution of the Company.


At Extraordinary Shareholders' Meeting held today, Cencosud S.A. approved the purchase for up to 27 million own-issue shares, to be delivered to executives as part of the Company’s Retention Plan, which has been established for a 5-year term.

The Retention Plan complements and expands the existing one with a modern proposal, including recognition for permanence and performance, linked to financial and ESG parameters. This reinforces the commitment of both the Company and its executive team to the strategic plan and business model that have enabled Cencosud to achieve a solid market position. Moreover, the plan aims to deepen the Company’s transformation and anticipate new trends.

During the Ordinary Shareholders' Meeting of Cencosud S.A., also held today and presided over by Chairman of the Board, Heike Paulmann and CEO Matías Videla, the Company presented its financial statements for 2022 and the key achievements during the same period. Cencosud achieved record figures in Revenues, Adjusted EBITDA and Net Profit, with growth rates of 25.8%, 13.1% and 3.4%, respectively, compared to the previous year.

The Company also informed shareholders about its strategy to continue strengthening its digital ecosystem, as well as its commitment to sustainability and corporate governance in all markets where it operates. "As a Company, we strive to anticipate the changes occurring in our society and pay special attention to the needs of our customers, while always looking at the long-term markets," stated Heike Paulmann.

Regarding the distribution of dividends, it was decided that a dividend equivalent to CLP $103 per share would be distributed, to be charged against the 2022 net income.

The Company attributed these historic results to the execution of its 5-pillar strategic plan: Financial Strengthening, Innovation and New Trends, Organic and Inorganic Growth, Talent Development, and Sustainability.

According to CEO Matías Videla, 2022 will be remembered as a key year in the Company's history, thanks to the commitment of its employees and suppliers, as well as the loyalty of its customers. "Being consistent with our strategy has allowed us to close a very successful year and also to gain recognition in the market for our business model. We boast a solid liquidity and debt position," he stated.

The Financial Strengthening pillar, one of the highlights of 2022, allowed the Company to achieve its highest credit rating from the International Risk Rating agency. Furthermore, Cencosud recorded over 614 million transactions in all its stores, both physical and digital, representing an 18.5% increase compared to the previous year.

The Innovation and New Trends pillar allowed Cencosud to cement its position as e-grocery leader in Chile, Argentina, and Peru in terms of market share, while also making strides in the development of its Marketplace, Private Label, and "Prime" subscription model. The Company also continued to bolster its digital ecosystem with state-of-the-art technologies and innovations, resulting in an online penetration rate of 10.1% of sales for the year.

In this area, the Company announced that CencoMedia will be entering Peru this year, adding a new market to the existing ones, which are Chile, Argentina and Colombia. Meanwhile, with Cencommerce, the Company will focus on connecting all businesses through flexible technology and enhancing the Marketplace, the Spid format, and Prime membership. Additionally, CencoVentures, another unit of the digital ecosystem, plans to invest in three startups in the near future to complement Cencosud's strategy.

Regarding organic and inorganic growth, Cencosud achieved its organic growth targets and reached a total of 1,447 stores in the different countries where it operates, with 3,660,279 m2 of sales floor space as of March 2023. Moreover, the Company made strategic acquisitions in the United States and Brazil, enabling it to diversify its formats and geographic presence.

Videla emphasized that The Fresh Market chain is a significant contributor, accounting for 12% of Cencosud's results, and holds promising growth potential for the group. "Since last year, we have had 10 people working on-site for integration. We have already achieved financial synergies and are currently in the process of obtaining commercial and technological synergies. In 2023, we expect to achieve a know-how exchange with Cencosud, as well as strategic alliances," he emphasized.

Regarding Sustainability, the Company has joined the United Nations Global Compact Network, showcasing its commitment to the Sustainable Development Goals. Additionally, it inaugurated its Cencosud Hub in Chile, a workspace specifically designed to promote the cultural evolution of the Company. Finally, it launched the CencoMujeres Mentoring Program, aimed at fostering the development of women leaders within the Company. All these initiatives demonstrate Cencosud's commitment to sustainability, diversity, and equal opportunities, fundamental values for any Company’s long-term success.

About Cencosud

Cencosud is one of the largest and most prestigious retailers in the Americas, with operations in Argentina, Brazil, Chile, Peru, Colombia, and the United States -in addition to a commercial office in China and a technological Hub in Uruguay- where it develops a successful multi-format strategy that today employs more than 122 thousand people. Its operation encompasses several business lines, such as Supermarkets, Home Improvement, Department Stores, Shopping Centers and Financial Services.

Additionally, Cencosud operates complementary businesses such as Cencosud Media and Cencosud Ventures, all of which are known for their quality, excellent level of service, and focus on customer satisfaction. For more information, please visit www.cencosud.com

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